By Jonathan Davies

Greece has submitted fresh new proposals for economic reform to the EU and International Monetary Fund (IMF).

Just a few days ago, Greece Prime Minister Alexis Tsipras rejected proposals put forward by European Commission President Jean Claude Juncker.

It is understood that Greece's latest proposals contain concessions on VAT reforms, pensions and its surplus target.

Greece and its creditors, the EU, IMF and the European Central Bank (ECB), need to agree on economic reforms before the final €7.2 billion tranche of Greece's €240bn bailout is released.

Its creditors are keen to implement more austerity on the country as a sort of insurance policy against the bailout. But that has been difficult following the election of Mr Tsipras and his left-wing, anti-austerity Syriza party.

Mr Tsipras yesterday (Monday) said failure to secure an agreement by the end of the month, when the current deal expires, would signal the beginning of the end of the eurozone.

German Chancellor Angela Merkel reiterated that point, speaking after the G7 summit in the Bavarian Alps, saying that time is running out.

Mr Tsipras, Ms Merkel and French President Francois Hollande are due to meet in Brussels tomorrow.