German Chancellor Angela Merkel has said that "time is short" for a deal to be reached with Greece but confirmed that EU leaders have all "strongly backed" a commitment to reach an agreement.
Speaking after a Eurogroup meeting to discuss the issue of Greece's finances today Merkel said "intensive work" was needed as negotiations continue but European leaders do want Greece to stay in the Euro Zone.
According to reports citing the head of the Eurogroup, a resolution to the country's debt crisis could be reached "later this week" and Merkel said that it was "clear that financial sustainability is part of Greece negotiations".
Greece has blinked first - but is it enough to save the country from bankruptcy?
Thousands of pro-euro demonstrators have gathered in Athens as negotiations appear to be moving Greece close to a bailout deal.
There has been optimism before, but new external pressures may now force a deal over the Greek debt crisis, writes Richard Edgar.