(MENAFN- The Peninsula) Fresh Greek bailout reform proposals submitted to eurozone partners were cheered by France and Italy yesterday, raising hopes that a last-ditch compromise could be reached to prevent a dreaded "Grexit."
The plan delivered by Prime Minister Alexis Tsipras's administration for study by the EU, IMF and European Central Bank was to be put to a vote late Friday by Greek lawmakers.
Tsipras has conceded ground on major sticking points including tax and pensions in a bid to secure a new bailout, drawing encouragement from his biggest ally, French President Francois Hollande.
"The Greeks have shown a determination to want to stay in the eurozone because the programme they are presenting is serious and credible," Hollande said.
He cautioned, though, that "nothing is decided yet." Any new Greek rescue needs to be approved unanimously by eurozone members. Italian Prime Minister Matteo Renzi declared himself "more optimistic" that a deal would be done.
But Germany, leading a bloc of sceptical eurozone nations, said the outcome of crisis talks this weekend was "completely open."
Slovak Finance Minister Peter Kazimir - one of the staunchest opponents to extending more bailout funds-tweeted "it seems we have progress on Greece" after the new proposals were submitted. He, too, warned however: "It's still not clear whether this will be enough."
The possibility of a breakthrough sent stock markets soaring in Europe, Asia and the US.
The euro surged more than 1.3 percent on the Greek plan, before falling back slightly in later trade, still up at $1.117. "The eurozone seems to be as close to a deal as it has done for the past five months, with progress seemingly genuine and credible," said analyst Connor Campbell at trading firm Spreadex. A make-or-break summit bringing together leaders of all 28 EU nations, not just the 19 that use the euro, is scheduled for tomorrow.
It could be cancelled if an agreement is reached beforehand, though parliaments in several EU nations, notably Germany, will have to vote on whether to accept Greece's reform plan in exchange for another huge bailout - its third in five years. "We have to make a major decision. Whichever way," said Jeroen Dijsselbloem, head of the Eurogroup of eurozone finance ministers.
In a bid to head off a possible challenge to the measures within his hard-left party Syriza, Tsipras urged his lawmakers "to stand united and firm in front of these important decisions."
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