Even a best case scenario at Wednesday's EU summit "wouldn't be enough to avert the financial crisis," a financial analyst said, just moments before the meetings were set to begin.
The three-pronged plan aims to nail down the details of the Greek "haircut", the recapitalisation of the banks most exposed by the crisis and increasing European Financial Stability Fund (EFSF) fund.
A best case scenario today would see the leaders agree:
- a 60% haircut off Greek debt
- a €100 billion buffer zone for banks
- to increase the EFSF to €1 Trillion
"Even if this was possible, I don't think this would push the button on averting the financial crisis," said the financial analyst.
There are also other options on the table including selling European debt to China or one of the other Bric nations that have the highest level of GDP at the moment. But this would mean empowering one or all of the countries and relinquishing influence at summits such as the G20.
Earlier, Angela Merkel, who was backed by the Reichstag in increasing Germany's stimulus into the rescue package, said that today was a "now or never moment for Europe".
British Prime Minister, David Cameron, will be able to attend the 27 state commission but without being a member of the Eurozone, will have to try and influence decision from outside of the room.
The prime minister came under pressure during PMQs in the house of Commons when Ed Miliband, the Leader of the Opposition criticised the Cameron and the deputy prime minister, Nick Clegg of contradicting each other with the former saying that Britain must reclaim powers from Europe, but the latter advising that there shouldn't be a "smash and grab" attitude with other political leaders.