Greece debt crisis: Eurozone summit 'reaches agreement'

"Europe's politics and economics are being affected by Greece": Katya Adler reports. Photo: BBC

Eurozone leaders say they have reached an agreement over a third bailout for Greece after marathon talks.

EU chairman Donald Tusk said leaders agreed "in principle" on negotiations for the bailout, "which in other words means continued support for Greece".

"There will not be a 'Grexit'," said European Commission head Jean-Claude Juncker, referring to the fear that Greece would have to leave the euro.

Greece is expected to pass reforms demanded by the eurozone by Wednesday.

Parliaments in several eurozone states also have to approve any new bailout.

Eurozone leaders had been meeting in Brussels for about 17 hours, with talks continuing through the night.

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