LONDON (Reuters) – European stocks surged at the open on Friday after Greece submitted fresh reform proposals to its euro zone creditors, making substantial concessions in a bid to win new funds and avert bankruptcy.
The pan-European FTSEurofirst 300 was up 1.5 percent at 1,533.63 points by 0706 GMT, with the euro zone blue-chip Euro STOXX 50 rising 2.2 percent.
Greece has asked for 53.5 billion euros ($59 billion) to help cover its debts until 2018, but has pledged new tax hikes in return.
Traders said that the latest reform plan had made investors cautiously optimistic that a deal could be struck by Sunday’s deadline.
"The proposals appear to offer additional concessions from Greece on the key issues that have stalled negotiations this year," said Craig Erlam, senior market analyst at OANDA.
"(The proposals) could offer a platform on which a deal could be agreed this weekend." (Reporting by Alistair Smout, editing by Liisa Tuhkanen)