An agreement between Greece and its euro zone partners is still possible, EU Economics Commissioner Pierre Moscovici told Britain's BBC radio on Wednesday, adding that the future of the currency bloc was at stake in the talks.
“Today, although difficult, very difficult, an agreement is still possible and more necessary than ever,” he said. “Grexit would be a terrible failure, a collective mistake and we are fighting to avoid it.”
Mr Moscovici said the bloc was still waiting to see a set of “comprehensive, credible, complete, tangible set of reforms” from Greece, but that he believed the Greek government remained committed to staying in the euro zone.
The former French finance minster, said it was important for Paris and Berlin to act together to convince Greek prime minister Alexis Tsipras to deliver a workable proposal.
“We are certainly in a historical moment where the future of the euro zone is at stake,” he said. “We need to be conscious of that and to act at a level of responsibility which is as important.”
Speaking today, Enda Kenny said Greece is “an important, fundamental” part of the euro zone and the EU, and said he hoped talks this week would lead to stability for the Greek people.
“Confidence has to come before decisions are made to invest and when that investment takes place jobs are created and the spin-off begins in terms of growing the economy,” he said.
“I just spent yesterday evening in Brussels with all of the colleagues from the euro zone in respect of that very issue, the lack of stability and the way that it is impacting on the ordinary people in Greece now.
“So I do hope that when the opportunity presents itself today now for the prime minister to lodge his application for a new programme, that when the details of those proposals come on Thursday they can be assessed by the institutions at the euro zone group on Saturday.
“Hopefully...if people are really serious about this on Sunday the matter can be concluded successfully with the entire European council so that Greece and its people can actually get onto the pathway of stability which leads to confidence, investment, jobs and, through the necessary reforms, can continue in future to be an important, fundamental element of the Eurozone and the EU”.
European Commission president Jean-Claude Juncker has warned that though he would prefer to keep Greece in the euro zone, "we have prepared a Grexit scenario in detail".
In a final push to resolve the crisis, all 28 EU leaders will meet on Sunday to consider a third bailout programme for Athens after Alexis Tsipras pledged to submit detailed proposals on a new bailout package tomorrow.
A series of high-level meetings in Brussels on Tuesday had threatened to end without agreement, after the Greek finance minister and prime minister failed to table fresh proposals as promised. But in a late-night meeting in Brussels, EU leaders agreed to meet this weekend in a bid to make a deal.
European shares edged higher in early trading on Wednesday after euro zone members gave Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans.
In a press conference after the meeting, European Council president Donald Tusk warned that there are only days to avoid the worst-case scenario and save Greece from bankruptcy.
“The stark reality is that we only have five days to find the ultimate agreement,” he said. “Until now I have avoided talking about deadlines, but tonight I have to say it loud and clear – the final deadline ends this week. All of us are responsible for the crisis, and all of us have a responsibility to resolve it.”
Jean-Claude Juncker demanded to know how Greek officials dared to call the European Commission terrorists. Greece didn’t manage to supply a detailed reform plan yet, but they needed to do it fast, he said.
Speaking after Tuesday night’s emergency euro zone summit, Taoiseach Enda Kenny said he was hopeful the strategy now in place would bring the talks to a successful conclusion.
“Everybody around the table wants this resolved quickly,” he said. “Time is of the essence, the situation is more complex now, and difficult now than it was before the referendum.”
But with cash-starved Greek banks due to reopen on Thursday, the European Central Bank must now decide whether to maintain its lifeline to the country's banking system.
Mr Tsipras promised a “fast” process, concluding by the end of the week at the latest. “The Greek side will continue the effort, having the strong weapon of the Greek people’s verdict.”
On the question of debt relief for Greece, euro zone sources said that Mr Tsipras had withdrawn his demand for a writedown of Greek debt, but had opened the door to discussing an increase in loan maturities as a way of tackling Greece’s debt sustainability.
German chancellor Angela Merkel said that, while talks on debt relief were possible, these would only take place at the end of negotiations and on condition that Greece fulfils its new programme.
“At the end we will certainly come to [TALK OF]debt sustainability,” she said. “But many said this evening, including myself, that a [DEBT]haircut is out of the question.”
In addition to filing an acceptable bailout application, the German leader said it was up to Greece to explain how it would meet widening gaps in its budget. This could not come from interim EU financing, she said, but from “structural measures” in Greece.
