Stock indices closed slightly higher as investors are cautious if the Greek government will be able to pass a series of reforms in the Greek parliament, while Greek banks remain closed until July 15.
The deal also needs to be approved by national parliaments before talks about a bailout programme can start.
The head of the Eurogroup Jeroen Dijsselbloem said that detailed development of the new bailout programme could take about four weeks. Greece will need short-term funding. Dijsselbloem said that Eurozone finance ministers had not been able to find a solution yet.
Greece has not repaid €456 million IMF loan on Monday. On June 30, Greece failed to make €1.5 billion repayment of IMF loans.
Meanwhile, the economic data from the Eurozone was mostly weaker-than-expected. Industrial production in the Eurozone dropped 0.4% in May, missing expectations for a 0.2% gain, after a 0.1% rise in April.
The decrease was driven by a drop in energy output and non-durable consumer goods output.
On a yearly basis, Eurozone's industrial production gained 1.6% in May, missing expectations for a 1.9% rise, after a 0.9% increase in April. April's figure was revised up from a 0.8 gain.
The increase was driven by a rise in durable consumer goods, capital goods and intermediate goods.
Germany's ZEW economic sentiment index declined to 29.7 in July from 31.5 in June, missing expectations for a decline to 30.0.
"Neither the difficulties in dealing with the Greek sovereign debt crisis nor the turmoil on Chinese financial markets seem to impress the financial market experts strongly. Despite the slight decline of the indicator, the overall economic outlook for Germany remains positive," the ZEW President Clemens Fuest.
Eurozone's ZEW economic sentiment index dropped to 42.7 in July from 53.7 in June.
German final consumer price index declined 0.1% in June, in line with the preliminary estimate, after a 0.1% rise in May.
On a yearly basis, German final consumer price index decreased to 0.3% in June from 0.3% in May, in line with the preliminary estimate. It was the highest level since October 2014.
The decline was driven by falling energy prices which dropped 5.9% year-on-year in June.
The Bank of England (BoE) Governor Mark Carney said the Treasury Select Committee on Tuesday that the time for interest rate hike is nearing. He added that interest rates would not move back to the pre-crisis levels.
The Office for National Statistics (ONS) released the consumer price inflation data for the U.K. on Tuesday. The U.K. consumer price index fell to 0.0% in June from 0.1% in May, in line with expectations.
The decrease was driven by lower food and summer clothing prices.
The BoE Governor Mark Carney expects the consumer price inflation to rise towards the end of the year.
On a monthly basis, U.K. consumer prices was flat in June, missing expectations for a 0.1% gain, after a 0.2% rise in May.
Consumer price inflation excluding food, energy, alcohol and tobacco prices declined to 0.8% in June from 0.9% the month before.
The consumer price inflation is below the Bank of England's 2% target.
Indexes on the close:
Name Price Change Change %
FTSE 100 6,753.75 15.80 0.23 %
DAX 11,516.9 32.52 0.28 %
CAC 40 5,032.47 34.37 0.69 %