Greek crisis: eurozone leaders hold emergency summit - as it happened

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Prospect of six-month Greek bailout extension sends shares rallying across Europe, as eurozone finance ministers and leaders hold crucial talks

Are the markets over-reacting? It certainly wouldn’t be the first time that shares have surged on hopes of a deal, only to fizzle out.

Investors are calculating that a) Greece’s latest proposals offer genuine prospects of a deal, and b) European leaders aren’t prepared to let the eurozone fragment.

Hey Eurozone, markets: we've been v confident and hopeful *many* times before, and look where we are now. Hold your horses (for now) #Greece

European markets are a sea of green this morning:

Major European indices - FTSE100 and DAX - have jumped up to 1 week+ highs on hopes of this Greek deal.

The key question is whether Greece has made sufficient concessions on pensions, says Frederik Ducrozet, economist at Credit Agricole.

*If* creditors are satisfied with Greek proposals on pensions, we should get the basis for a deal and no ELA cap.

There is “new hope of progress in Greek bailout negotiations” in the City today, says Mike van Dulken of Accendo Markets, after Athens has presented new proposal to creditors late last night.

Germany’s DAX has leapt by 2.5%, as Frankfurt traders embrace optimism over Greece....

European stock markets have surged that the start of trading, on hopes of a long-awaited deal on Greece today.

In London, the FTSE 100 has jumped by 72 points, or 1.1%, as investors welcome the news that Greece submitted new compromise proposals overnight.

From Brussels, my colleague Jennifer Rankin sums up the situation:

Greece has submitted 11th-hour concessions to its creditors ahead of a crucial day of talks aimed at preventing it from crashing out of the eurozone.

Its proposal followed a hectic round of telephone diplomacy on Sunday between Germany’s chancellor, Angela Merkel, the French president, Francois Hollande, and the European Commission president, Jean-Claude Juncker.

Related: Greek debt crisis: Tsipras concessions welcomed as 'good basis for progress'

City traders are predicting that the German stock market will leap this morning, on hopes of a breakthrough today....

And German Dax forecast +290 points (!!) at 11,330, on Greek rumours.

EU economic commissioner Pierre Moscovici has declared that a solution will be found to tackle the Greek crisis, after Athens submitted new proposals late last night.

We’ll be having meetings with [Greek PM Alexis] Tsipras which, I hope and I am convinced, will allow us to reach an agreement this evening”.

“We are moving in the right direction, we have solid ground for a deal, we just have to consolidate that today ...

"Journée décisive, vitale. Je pense que la volonté de tous de préserver l'euro l'emportera" @pierremoscovici #E1matin pic.twitter.com/7XUJrxcrYh

La volonté politique de tous est de préserver l'#Euro, ce bien commun irréversible #Grèce @Europe1

Optimism is building that we will, finally, see meaningful progress today.

As Luxembourg’s foreign minister Jean Asselborn told Germany’s Deutschlandfunk radio a few minutes ago:

“There will be a lurch forward.”

Today will be packed with top level meetings. Here’s the running order:

Good morning.

Hope you all had a relaxing weekend, because today should be as dramatic as anything we’ve seen since the eurozone crisis began over five years ago.

New Greek proposal received by @JunckerEU, @Lagarde, @ecb. Good basis for progress at tomorrow's EuroSummit. In German: "eine Zangengeburt".

@GreekAnalyst @MartinSelmayr @JunckerEU @Lagarde @ecb not so much forceps delivery as Caesarian section, I'd say. But to what end?

Brussels sources also signalled moves to address Tsipras’s key demand – that the creditors need to offer debt relief to Greece.

Some form of debt restructuring would be promised to Athens in the future, but it would come with strings attached and not as part of the current bailout package, they said.

Related: Greek debt crisis: Tsipras concessions welcomed as 'good basis for progress'

Midsummer's Night Celebration in Brussels' EU Commission. #Greece pic.twitter.com/bIFl3Yd1G4

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