Greece bailout deal agreed

EU leaders have reached agreement that paves the way to a third Greek bailout, if Athens parliament approves tough austerity measures

It’s all over in Brussels, and Eurozone leaders are heading home after what appears to be the longest summit in EU history.

So after more than 26 hours, we’re going to wrap this liveblog up and launch a new one.

Here’s the state of play:

Greece and the rest of the eurozone have finally reached an agreement that could lead to a third bailout and keep the country in the eurozone.

Greek PM Alexis Tsipras conceded to a further swathe of austerity measures and economic reforms after more than 16 hours of negotiations in Brussels. He has agreed to immediately pass laws to further reform the tax and pension system, liberalise the labour market, and open up closed professions. Sunday trading laws will be relaxed, and even milk producers and bakers will be deregulated.

The Financial Times has dubbed it:

the most intrusive economic supervision programme ever mounted in the EU.

Greece was forced to accept these measures after Germany piled intense pressure, as a price for a new deal. EU officials told us that Tsipras was subjected to “mental waterboarding” in closed-door meetings with Angela Merkel, Donald Tusk and Francois Hollande.

The plan must now be approved by the Athens parliament by Wednesday, and then voted through various national parliaments. If agreement is reached, talks can then begin towards a a new three-year bailout worth up to €86bn (£61bn), accompanied by further monitoring by Greece’s creditors.

The deal appears to end Greece’s five-month battle with its creditors, which has gripped the eurozone, dominated the political agenda and alarmed the markets.

Emerging from the summit, Tsipras admitted it had been tough - but insisted he had won concessions on debt relief (sometime in the future) as well as the medium-term funding plan.

He also managed to persuade the eurozone that a new investment fund, that will manage and sell off €50bn Greek assets, would be based in Athens not Luxembourg.

But generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone.