By Jonathan Davies

Greek Prime Minister Alexis Tsipras has said he will accept most of the proposals put forward during unsuccessful talks with creditors over the weekend.

In a letter to the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF), Mr Tsiparas says Greece will make concessions on the vast majority of austerity reforms put forward.

But Germany says a deal still can't be struck until Greece's referendum takes place on Sunday. Human rights group Council of Europe said the referendum will "fall short of international standards" if held on Sunday.

German finance minister Wolfgang Schauble, who has been seen as Greece's biggest adversary in these talks, has tweeted to say that Mr Tsipras' letter "lacks clarity".

European stocks surged on the rumour. The FTSE 100 rose 1.2% and the Frankfurt Dax grew 1.6%. Europe's biggest riser, Fance's Cac was up 1.7%.

Greece yesterday (Tuesday) missed the deadline to make a €1.6 billion repayment to the IMF, therefore falling into arrears.