Greece's Prime Minister Alexis Tsipras launched a bid to win fresh aid from creditors, requesting “€7 billion within 48 hours” in order avoid what he called an emergency situation.
The money would be used to pay maturing debt obligations and avoid default but with Greek banks down to a couple of days’ cash and the European Central Bank unwilling to lend more, Tsipras was unable to convince Europe’s tired and scratchy leaders to authorise new financing.
His plea was not helped by the Greek delegation’s failure to present any new proposals, leaving the eurozone finance ministers bemused at Greece’s continued indifference to its self-inflicted predicament.
The eurozone ministers' group meeting ended uneventfully as there was nothing much to discuss in the absence of Greece's expected input.
Tsipras could submit draft proposals to creditors, ‘maybe on Wednesday.’
Jeroen Dijsselbloem, President of the Eurogroup and Finance Minister of the Netherlands, said after the eurozone ministers' group meeting that Greece is expected to present a formal request tomorrow asking for help from the European Financial Stability Facility (EFSF).
Later today a European Union Leaders meeting began with Merkel saying there is no basis to negotiate with Greece, nor is there much time to reach an agreement.
"It is no longer a matter of weeks, but of days," said Merkel, on arrival at the meeting of European Union Leaders.
Merkel said before entering the building that there must be solidarity at the European level, but this has to be reconciled with responsibility at the national level.
The solution to the Greece’s instability depends on Tsipras and his proposals, said the president of the European Commission, Jean-Claude Juncker, on arrival for the late afternoon European Union Leaders meeting.
The Irish head of government Enda Kenny made a point of saying that is essential to achieve an agreement and François Hollande echoed Merkel in asking for "responsibility, solidarity and speed."
This grown-ups meeting, convened by the President of the European Council at the request of Germany and France, will start at 17.00hrsGMT where Portugal’s Prime Minister will be present, keen for Greece to keep paying for its current loans of which Portugal's exposure is €4.6 billion. Germany's exposure by comparison is €92 billion, France is owed €70 and Spain a whopping €42 billion which is can not afford to lose.
This morning, the president of the eurogroup Jeroen Dijsselbloem said he anticipated difficulties at this European Leaders meeting and the German Deputy Foreign Minister Sigmar Gabriel said that "it was a mistake to have let Greece into the euro."
Greece’s banks need liquidity and also need to re-open for business, as does the country’s stock exchange.
The European Leaders' meeting made progess and all 28 leaders of the European Union's countries are to meet in Brussels on Sunday in an attempt to authorise a new bailout for Greece, according to Italian Prime Minister Matteo Renzi this evening.
"We can achieve an agreement on Sunday," said Renzi after today's meeting of the heads of 19 eurozone countries.
This breakthrough could keep Greece solvent and in the eurozone, provided it accepts reforms and spending cuts to sort out its public finances.
If Greece’s funders agree and the German parliament approved, the eurozone leaders could meet on Sunday evening to give political approval for more detailed negotiations on a two or three year bailout programme.
Any such deal could also include some ‘reprofiling’ of Greece's debt, but no write-offs.
