Frustrations boil over in Brussels at lack of detailed Greek plan

Greek Prime Minister Alexis Tsipras. Photo / Getty Images

European officials say Greece now has just five days to avoid bankruptcy.

Following a day of talks aimed at finding a way out of months of bitter deadlock, European leaders were scathing in their assessments of Greece's proposals, calling them inadequate and demanding the Greek Government return with a detailed plan for a deal by tomorrow.

The leaders of all 28 European Union members will then meet on Monday NZT in what officials said will be the final chance to save Greece from economic oblivion - or the moment the country is ejected from the eurozone.

"The stark reality is that we only have five days to find the ultimate agreement," said a visibly irritated Donald Tusk, the European Council President.

European Commission President Jean-Claude Juncker pounded the lectern as he announced that Europe has detailed plans for Greece's exit from the eurozone and for delivering humanitarian aid to Athens.

"I'm strongly against Grexit. But I can't prevent it if the Greek Government is not doing what we expect the Greek Government to do."

Greek Prime Minister Alexis Tsipras had a starkly different account of the meetings, saying that they were "positive" and that he had outlined proposals for a "socially just and economically viable agreement".

Greece's Government had been widely expected to present a new, detailed plan to finance ministers at a meeting yesterday, two days after a referendum in which Greek voters rejected Europe's latest proposed cuts-for-cash deal. Before the vote, Tsipras promised he could strike an agreement with Europe "within 48 hours" if voters backed him - as they did.

But instead of a formal blueprint, Greece's new finance minister, Euclid Tsakalotos, spoke from handwritten notes about his country's intentions to rein in costs and prop up its creaky fiscal underpinnings while avoiding some of the tough austerity measures that Greek creditors have demanded.

European officials were incredulous that Greece had not come better prepared, especially with the country's banking system subsisting from day to day and likely needing a fresh infusion of cash from the European Central Bank today just to stay in business.

Hours later, German Chancellor Angela Merkel said there still was not sufficient detail to formally restart negotiations.

The White House said US President Barack Obama and Merkel discussed the need "to reach a durable agreement that will allow Greece to resume reforms, return to growth, and achieve debt sustainability within the eurozone."

Key events

Yesterday: Greece failed to put forward any new reforms to finance ministers. Greece's new finance minister, Euclid Tsakalotos, spoke from handwritten notes about his country's intentions. One note read: "No triumphalism" - an apparent reference to the Government's desire not to openly celebrate its shock referendum victory.

Today, Tomorrow: Greece will submit a request for short-term bridging funds and a new two-year rescue package from creditors. These will be discussed by creditors before an attempt to reach a compromise.

Monday: Brussels has convened a full emergency summit of all 27 European leaders.

- Washington Post-Bloomberg, Telegraph Group Ltd