European markets closed sharply lower on Tuesday on concerns that Greece's negotiations with its creditors will drag on without a viable debt plan.
The pan-European Stoxx 600 index finished around 1.5 percent lower, reversing gains seen earlier in the session .
The U.K.'s FTSE 100 slipped to provisionally close 1.5 percent lower, Germany's DAX closed close to 2 percent lower, while France's CAC 40 was down around 2.3 percent at market close.
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Greece in focus
Euro area heads of government met in Brussels on Tuesday to discuss the situation following the referendum in Greece.Greece reportedly did not submit new written proposals on Tuesday, but instead made an oral presentation—with a written version to come on Wednesday, a move which irritated finance ministers who had traveled to discuss a new deal.
"We listened to our new Greek colleage after welcoming him to the Eurogroup, his assessment of the situation and what the results of the referendum would mean for the Greek government. He has not yet presented new proposals, but he will first of all now send us quite quickly a new letter requesting for ESM support, and following that he will present proposals for the Greek side on what the substance would look like on which we will reach an agreement," Eurogroup President Jeroen Dijsselbloem said, following today's meeting.
The Belgian finance minister tells CNBC he is very disappointed by today's meeting. He said the only finance minister who does not feel a sense of urgency is Greece's.
In currency markets, the euro slipped against a stronger dollar, falling around 1 percent after the European Central Bank decided to keep Greek banks propped up with emergency funds, but made it harder for them to access the funds. Capital controls on Greek banks are also still in place.