European Council President on Greek Crisis: “the final deadline ends this week”

Following what the German Chancellor, Angela Merkel, is reported to have described as a “very long, intensive”, “very clear and candid discussion” at the emergency summit of Eurozone leaders in Brussels tonight, some details are emerging of the next steps in the continuing Greek crisis.  From the Guardian’s live blog.

Europe has given Athens one last chance to produce a credible economic reform plan that could underpin a new bailout.  It has also threatened that Greece will leave the Eurozone if it doesn’t comply before Sunday when a new emergency summit will be held.

Speaking after tonight’s Eurozone summit European Council President Donald Tusk warned gravely that the next five days are the most critical in the European Union’s history.

He has called all 28 European leaders to Brussels on Sunday, which could be the moment that Greece begins to leave the Euro.

Donald Tusk has said that the reason all 28 EU leaders will be there, and not just the 19 current Eurozone leaders, is because they cannot avoid the possibility that there will not be a proposal on the table by Sunday, and they may need to consider the issue of humanitarian aid for Greece.

According to European Commission President, Jean-Claude Juncker, the deadline for the new Greek proposals is 8.30am Friday morning, and that there is a Grexit scenario, prepared in detail.  The Syriza-led Greek Government, he said, had not supplied a detailed reform plan tonight, but they need to do it fast.

Angela Merkel reportedly expects “detailed Greek proposals” for a new multi-year programme on Thursday.  And that Greece must first produce long-term proposals before short-term financing needs could be discussed.

The Eurogroup of Finance Ministers will meet on Saturday to discuss any proposals produced, and possibly the need for Greece to introduce a parallel currency, ahead of the EU summit on Sunday 12 July.

According to the comments by the leaders of Luxembourg and Austria, if the Sunday EU summit does take place, it may be because the proposals by the Syriza-led Greek Government are not acceptable to the other 18 Eurozone members, and the summit will be to discuss Greece’s exit from the single currency.