Greece debt crisis: Eurozone receives economic reform plan

By BBC News

The Greek government has submitted proposals for economic reforms in an effort to secure a further bailout from its international creditors.

Eurozone officials received the plan late on Thursday, two hours before a midnight deadline. They will now study it ahead of EU meetings at the weekend.

Greece's lenders had demanded tax and pension reforms in return for funds.The indebted country needs a third bailout to avoid a default and a possible exit from the euro. Greece's Prime Minister Alexis Tsipras spent Thursday seeking agreement on the reforms from his government partners. 

Mr Tsipras's proposals will be considered by eurozone finance ministers on Saturday, and by EU leaders at a summit in Brussels on Sunday. The Greek government will also seek parliamentary approval for the reform package.

Greek voters decisively rejected previous austerity proposals from the country's lenders in a referendum on Sunday.

According to reports in the Greek media, the measures submitted on Thursday evening involve tax rises and spending cuts worth more than 12bn euro - more than those rejected in the referendum.

Greek banks have been closed for nearly a fortnight with limits placed on cash withdrawals.

Earlier on Thursday, European Council President Donald Tusk said creditors would need to respond to Greece's reform plans with a "realistic proposal on debt sustainability".

Mr Tusk's comments could be seen as supporting calls to reduce Greece's debt burden.

But the German Chancellor Angela Merkel ruled out debt reduction, saying she was against "the classic haircut".