Greece must still find a further 325 million euros ($428.6 million) of spending cuts and give binding assurances the plan will be implemented before Wednesday when euro zone finance ministers meet to decide on a new 130 billion-euro bailout.

The euro was up 0.4 percent at $1.3250 recouping some of the losses made on Friday and about a cent below a two-month high of $1.3322 hit last week.

"The tense political situation in Greece continues to dominate price action on FX markets," UBS economist Reto Huenerwadel said.

Share markets were also recovering after fears about the lack of progress in Greek debt talks helped the S&P 500 suffer the year's biggest loss on Friday. The FTSEurofirst 300 .FTEU3 of top shares, which fell 0.9 percent to a one-week low at the end of last week, opened 0.3 percent higher at 1066.76 points.

($1 = 0.7582 euros)

(Additional reporting by Catherine Bosley. Editing by Jeremy Gaunt.)

• A Permanent Economic Emergency