The Stoxx Europe 600 index did erase much of an earlier slump, though, that saw it down 0.8% at one point. The index was flat at 383.33. On Monday, the pan-European benchmark tumbled 1.6% after talks between Athens and its European creditors broke down Sunday (http://www.marketwatch.com/story/breakdown-of-eu-greece-talks-sets-up-a-showdown-2015-06-15), with European officials dismissing Greece's latest reform proposal as "vague and repetitive."
There were few signs of progress in negotiations Tuesday. Greek Finance Minister Yanis Varoufakis reportedly said his country has no plans of presenting a new reform proposal at a closely watched Eurogroup meeting Thursday, insisting the lenders take Greece's suggested reforms seriously.
"The childish behavior continues on both sides as each party is blaming the other side for their unreasonable demands and their reluctance to not to give up," said Naeem Aslam, chief market analyst at Ava Trade, in a note.
"If anyone could do something at this stage, it will be the [European Central Bank] who is holding the bloodline for Greece in terms of [emergency liquidity assistance] and the bank announcing yesterday that there are no limits when it comes to the ceiling of the ELA, is making the Greek officials more stubborn," he added.
If no deal is reached by Friday, capital controls could be imposed as soon as this weekend, according to Germany's Süddeutsche Zeitung (http://www.sueddeutsche.de/wirtschaft/griechenland-euro-laender-beschliessen-griechenland-notfallplan-1.2522183). Greek officials denied the report.