Greek Prime Minister Alexis Tsipras submitted a new reform proposal to its international lenders in hope of reaching a deal and unlocking bailout funds before it's too late.
The initiative taken on the proposal marks a further attempt by Greece to compromise with its lenders and restore its battered relationship with them.
With the cash strapped country's bailout package expiring on June 30, Tsipras plans to meet German Chancellor Angela Merkel and French President Francois Hollande in Brussels on Wednesday. However, a staggering breakthrough is not expected as Greece and its creditors continue to disagree on measures which needs to be taken.
Greece will not be able to access the the remaining 7.2 billion euros in its emergency fund until it reaches a deal with its creditors.
Recently the negotiations with Brussels have entered a decisive phase as tension grows between negotiating parties.
Tsipras previously rejected a set of reforms put forward by European Union Commission President Jean Claude Juncker. Upon this, Greece was bombarded with a new wave of warnings from officials.
“We will do everything to keep Greece in the eurozone … but our patience is running out,” Finnish Finance Minister Alexander Stubb said.
Tsipras has made several steps towards its international lenders in order to prevent his country from going bankrupt.
Leaders of the eurozone's two biggest economies have also stressed the urgent need for a settlement on a deal.
The leftist government has agreed to raise the Value Added Tax (VAT) and offered a higher surplus target in order to weigh down the rising tension with its creditors.
If the debt burdened country is left to default, the Greek economy will suffer immensely.
“If Greece fails, the markets will immediately go to look for the next one. If negotiations fail, the cost for European taxpayers would be enormous,” said Tsipras. “It would be the beginning of the end of the euro zone.”
He also signalled an early election if talks with lenders continue to drag on. “I don’t expect or want elections… but we won’t betray the Greek people,” he said.