Greece

In a meeting with the ruling coalition in Athens, Alexis Tsipras said Greeks had given him a mandate to get a better deal not bow out of the eurozone.

News reports say the new proposal accepts the tough austerity measures demanded by Greece's European partners but also includes a debt write-off, which Germany has opposed.

Alexis Tsipras spoke to the European Parliament in more measured tones, acknowledging that Greece's financial plight was not just caused by creditors. But he also stood his ground on Greece's debt.

"If this does not happen, it will mean the end of the negotiations with all the possible consequences, including the worst-case scenario," European Council President Donald Tusk said.

Yanis Varoufakis railed against the terms imposed on Greece by its creditors and his negotiating partners. In his resignation letter, he said he "shall wear the creditors' loathing with pride."

Finance Minister Yanis Varoufakis said his resignation could help the prime minister negotiate a better deal with the EU. However, he said, he will wear the "loathing" of Greek creditors "with pride."

The Greek economic drama has been playing out for five years with papered-over solutions. But with Sunday's vote, the crisis has taken on new urgency.