Greece has been given an ultimatum until tomorrow to present a detailed cash-for-reform plan prior to a full EU summit on Sunday.

The country is expected to present a clear plan to accompany an application for bailout money from the European Stability Mechanism, a fund created in the wake of the euro crisis of the past few years.

But apart from listing measures it would implement to put public finances on a sure footing, the Greek parliament will be expected to start passing legislation on reforms the government agrees with prior to the summit.

It is unacceptable not to have had a proposal on the table

European Council President Donald Tusk said at the end of last night that if no agreement is reached on Sunday, “it will mean the end of the negotiations with all the possible consequences, including the worst-case scenario, where all of us will lose”.

The final deadline, he said, ends this week.

The developments came as Greece continued its talk-and-delay tactics yesterday when newly-appointed finance minister Euclid Tsakalotos turned up empty-handed at a eurogroup meeting in Brussels.

Mr Tsakalotos, who replaced the flamboyant Yanis Varoufakis after Greeks overwhelmingly rejected bailout conditions in a referendum last Sunday, made no proposal for a cash-for-reforms deal.

The move angered creditors. Prime Minister Joseph Muscat did not hide his disappointment after the meeting of Eurozone leaders yesterday evening that followed a eurogroup meeting of finance ministers.

“The Greek Prime Minister had promised he would reach a deal with creditors within 48 hours of the referendum result but he was not even able to present a proposal,” Dr Muscat said, echoing the anger and frustration that characterised yesterday’s emergency meetings.

He said it was worrying to see Greek pensioners unable to make ends meet but expressed surprise at the lack of urgency shown by the Greek government.

“In the face of such urgency it is unacceptable not to have had a proposal on the table.”

Dr Muscat ruled out any haircut on money loaned to Greece and insisted this was “almost a unanimous” position adopted by all Eurozone countries.

“This is the last train,” Dr Muscat said.

The Greek plan will have to be reviewed by the institutions – European Commission, European Central Bank and International Monetary Fund – in time for a eurogroup finance ministers meeting on Saturday.

A full EU summit will be held on Sunday in the hope of a deal being struck.

Greek Prime Minister Alexis Tsipras said the country’s final aim was to achieve a “final exit from the crisis”. He aimed to deliver a “socially just and economically viable agreement” with credible reforms, in return for funding commitments.

Asked what would happen if no agreement was reached by the weekend, Dr Muscat said there were two scenarios in the making, hinting that a Grexit would loom on the horizon if no deal is reached. “We do hope that the scenario that comes to fruition is the one that sees the Eurozone remaining as it is today.”

The new Greek finance minister is a breath of fresh air

Dr Muscat’s comments echoed the feeling of disappointment German Chancellor Angela Merkel is said to have expressed yesterday during the meeting on Greece’s proposal no-show. However, Ms Merkel moderated her earlier hard line stand against re-opening negotiations with Greece for a last-ditch effort to save the country.

Various leaders, including Dr Muscat, accused Mr Tsipras of abusing the solidarity shown by creditors. Malta’s exposure to Greek debt amounts to some €177 million, which is one of the highest when calculated as a percentage of the country’s GDP.

The back-to-back emergency meetings of eurogroup finance ministers and leaders were held in the wake of last Sunday’s referendum that saw 61 per cent of Greeks vote No to a previous bailout package. The result emboldened Greek Mr Tsipras to return to the negotiating table with demands for debt relief.

But Dr Muscat insisted the referendum result had also strengthened the resolve of Eurozone members to stick together.

Time is running out for Greece to reach a deal as banks remain shut and capital controls restrict withdrawals from cash machines to a maximum €60 per day. The measures imposed by the Greek government to prevent a flight of capital from the country have increased the hardship for ordinary Greeks.

Finance Minister Edward Scicluna said unless some form of agreement was reached by next weekend, the situation in Greece would become dire.

He said the possibility of a Grexit had to be studied to ensure Greece made an orderly exit from the euro if the situation reached that point.

Eurozone finance ministers emerged from their afternoon meeting with feelings fluctuating between sympathy for the new Greek finance minister and frustration at the lack of proposals.

Prof. Scicluna described Mr Tsakalotos as a “breath of fresh air” but said much depended on Greece’s next actions.

Greek crisis in numbers

11 million
The Greek population.

€240 billion loans
Creditors gave Greece €240 billion in two bailout packages since 2010. The last tranche of the second bailout, amounting to some €7 billion was held up after talks failed last month.

26% unemployment
Greek unemployment has soared since 2010 as the economy jammed.

61% No
An overwhelming majority of Greeks last Sunday rejected bailout conditions in a snap referendum called by Prime Minister Alexis Tsipras.

€300 billion debt
The money loaned to Greece has made little difference. The land of Zeus, Athena and Alexander the Great today has a bigger mountain of debt to climb equivalent to €273 million per capita.

2-year deal
Greek Prime Minister Alexis Tsipras wants a new two-year bailout package from Eurozone partners but disagrees with tax hikes and expenditure cuts demanded by creditors. He was elected last January on a pledge to end austerity.

€7 billion overdue
Greece defaulted on a €1.6 billion loan to the IMF in June and owed €5.2 billion in short-term bills.

2010
Five years ago Greece asked its Eurozone partners, the European Central Bank and the International Monetary Fund for assistance after it was crippled by a financial crisis.

180% of GDP
Greek debt is equivalent to 180 per cent of GDP, three times as much as the Eurozone criteria permit.

30% cut
Under fresh Greek proposals the country has asked creditors to forgive loans equivalent to 30 per cent of current Greek debt.

€13 billion due
The amount Greece owes various creditors in July and August.

kurt.sansone@timesofmalta.com