Europe Sets 'Final' Deadline For Greece Deal

Eurozone leaders have offered Greece a final chance to present a credible rescue plan - or face a likely exit from the euro.

The leaders of all 28 EU member states will discuss any Greek proposal at a "decisive" summit on Sunday.

Athens has been told to submit a loan request and reform plan by Friday, although German Chancellor Angela Merkel wants to see commitments from Greek Prime Minister Alexis Tsipras as early as Thursday.

In the meantime officials are devising "detailed" plans for a so-called Grexit scenario.

European Council President Donald Tusk called it "the most critical moment" in the history of the EU.

He added that "the euro area authorities stand ready to do whatever is necessary to ensure the financial stability of the euro area as a whole".

His comments came after an emergency eurozone leaders' meeting ended with little to show.

Greek ministers had been accused of failing to present concrete proposals in Brussels.

Belgian Finance Minister Johan Van Overtveldt said: "I have the strong impression there were 18 ministers of finance who felt the urgency of the situation and there is one who doesn't feel the urgency of the situation."

But a few hours later Mr Tsipras left the summit saying his country was now ready to carry out credible reforms in return for adequate funding.

He said the meetings had a "positive atmosphere" and there was now the prospect of a "final exit" from the crisis.

Greece's new finance minister, Euclid Tsakalotos, also took a front seat in the talks and headed into the meeting with handwritten notes scrawled on hotel notepaper.

A close-up photograph showed they included the phrase "no triumphalism".

Speaking after the meeting, Italian Prime Minister Matteo Renzi said: "I hope and believe a definitive solution for Greece will be possible on Sunday.

"The ball is in Greece's court. Next Sunday the final meeting will take place on Greece."

Greece is perilously close to leaving the currency after some 61% of voters rejected a new bailout deal that demanded further austerity measures.

Fears are mounting that banks and cash machines in Greece could run dry over the next few days as the country tries to find a solution to its €240bn (£170bn) debt.

But European Central Bank chief Mario Draghi insisted his organisation would help keep Greek banks afloat until Sunday's summit.

Athens has backtracked on promises that banks would reopen on Tuesday.

They will now stay shut until at least Thursday, with a €60 (£42) daily limit on ATM withdrawals.

Despite celebrations on the streets after Sunday's referendum, three-quarters of Greeks say they want to stay in the euro.

Greece's economy has already shrunk 25% since 2008 and it has been suggested a euro exit could see a further 25% contraction.

One in four people in the country is unemployed and among under-25s the figure is nearly 52%.

Former prime minister Tony Blair told Sky News a Greek exit would be a "much bigger catastrophe than we think" and "we should do all we can to avoid it".