Eurozone countries have given Greece until 12 July to come up with a proposal for sweeping reforms in return for loans that will keep the country from crashing out of Europe's currency bloc and into economic ruin.

European Council President Donald Tusk told a news conference on 7 July:

"Our inability to find agreement may lead to the bankruptcy of Greece and the insolvency of its banking system. And for sure, it will be most painful for the Greek people. I have no doubt that this will affect all of Europe, also in the geo-political sense. If someone has any illusion that it will not be so, they are naive. The stark reality is that we only have five days left to find the ultimate agreement.

"Until now I have avoided talking about deadlines, but tonight I have to say it loud and clear that the final deadline ends this week. All of us are responsible for the crisis and all of us have a responsibility to resolve it," he continued to say.

Greek Prime Minister Alexis Tsipras has until 10 July to present the proposal, but German Chancellor Angela Merkel said she hoped to have convincing reform commitments from Tsipras on 9 July so she could ask the German parliament to authorise negotiations on a new aid programme.

Merkel said she was "not exaggeratedly optimistic" for a solution.