ROME: European stock markets have surged on hope that Greece would seal a deal with its EU-IMF creditors this week to save the country from default and a possible euro exit.
Eurogroup head Jeroen Dijsselbloem sounded an optimistic note following a meeting of eurozone finance ministers in Brussels to review new reform proposals by Greece.
Athens’ plans are a “welcome step” and “an opportunity to get that deal later this week and that is what we will work for,” Mr Dijsselbloem told reporters, adding that the Eurogroup would likely meet again later this week.
In the euro area, the CAC 40 in Paris jumped 3.8 per cent to close at 4,998.61 points while Frankfurt’s DAX 30 also gained 3.8 per cent to stand to 11,460.50 points.
The Milan stock exchange won 3.5 per cent, Madrid climbed 3.9 per cent and the Athens Composite Index rocketed 9 per cent.
Outside the eurozone, London’s benchmark FTSE 100 index of top companies rose 1.7 per cent to end the day at 6,825.67 points.
Meanwhile the leaders of the 19 countries in the euro area are set to hold an emergency summit on Greece later on Monday in Brussels.
The Greek proposals sent to Brussels overnight were a last-ditch bid to unlock the final €7.2 billion ($A10.5bn) tranche of its international bailout, which creditors have refused to release unless Greece agrees to more austerity measures.
Without the bailout cash Greece will be unable to pay a €1.5bn IMF payment on June 30, and a default could send Athens crashing out of the single currency and possibly the European Union.
Greek economy minister Giorgos Stathakis said its EU-IMF creditors had broadly accepted the new reforms proposed by Athens.
“They have accepted that the new proposals of the Greek government is a proper framework on which to work on and, with some adjustments that will be the issue of discussion for the next day or so, we’ll end up with proper technical solution as well,” he said in an interview.
