Factbox: Summary of Eurogroup proposal on Greece

BRUSSELS (Reuters) - Euro zone leaders at a summit in Brussels were reviewing a draft proposal from their finance ministers that sets out conditions for Greece to open negotiations on a bailout.

The following is a summary of the paper, seen by Reuters.

* Greece to pass by Wednesday measures including simplifying VAT rates and applying the tax more widely, cutting back on pensions and making the national statistics agency independent.

* Greece to set clear timetable for following measures:

- ambitious pension reform;

- market reform including Sunday trading, pharmacy ownership and opening of closed professions such as ferries;

- privatise electricity transmission network;

- review collective bargaining, industrial action and collective dismissals;

- strengthen financial sector, including action on non-performing loans and eliminate political interference.

* Following actions to be taken:

- privatisation, possibly involving transfer of 50 billion euros of assets to external and independent fund;

- cut costs of public administration and reduce political influence over it. First proposal to be provided in a week.

- seek creditor approval for key legislation before submitting to public consultation or parliament.

The above-listed commitments are minimum requirements to start the negotiations with the Greek authorities.

* Financing needs are 82-86 billion euros. Decision on new package urgently required given financing needs of 7 billion euros by July 20 and further 5 billion euros by mid-August.

* A possible new ESM programme would have to include a 10-25 billion euro buffer for banks.

* Possible debt reprofiling but no nominal haircuts.

* If no agreement is reached, Greece could be offered "time-out" from the euro area, with possible debt restructuring.

(Reporting By Philip Blenkinsop; Editing by Alastair Macdonald)