Eurozone Greek crisis talks

The talks in Brussels resumed Sunday morning after the Eurogroup, comprising of finance ministers from the 19-nation currency area, negotiated with Athens for nine hours the day before.

The Saturday meeting was meant to pave the way for all 28 European Union leaders to sign a final agreement at a summit on Sunday evening, but that meeting has been canceled by EU President Donald Tusk, who said the focus should be on eurozone talks, which are to include a summit of its 19 leaders on Sunday afternoon.

In a tweet early on Sunday, Tusk said this summit would "last until we conclude talks" on Greece.

Jeroen Dijsselbloem, the chief of the Eurogroup, described Saturday's talks as "very difficult," but said work was "still in progress."

Widespread skepticism

Eurozone finance ministers are divided over reform proposals put forward by Athens after the Greek government requested a three-year bailout worth 53.5 billion euros ($59.5 billion) from Europe's bailout fund - a sum many EU officials believe may not be enough to rescue the country economically.

Many eurozone nations have expressed skepticism that Greece will enact the proposed reforms, which include pension cuts and tax hikes that sit badly with election pledges made by the country's Syriza-led government, although the proposals have been approved by the Greek parliament.

Germany is one of the countries to take a strict stance toward Greece, with Finance Minister Wolfgang Schäuble accusing the Greek government of repeatedly going back on its promises.

Germany's finance ministry has proposed in a position paper that Greece either improve its latest reform plan or leave the eurozone for five years.

'Unthinkable humiliation'

This uncompromising position was reportedly criticized by Italian Prime Minister Matteo Renzi in comments published in Rome's daily "Il Messaggero" on Sunday.

"Now common sense must prevail and an agreement must be reached," he was quoted as saying.

"Italy does not want Greece to exit the euro and to Germany I say: enough is enough," adding that "Humiliating a European partner after Greece has given up on just about everything is unthinkable," the quote went on.

Even if a deal is reached and signed by EU leaders, at least eight parliaments will have a say on a final agreement, with Germany's parliament, the Bundestag, having to vote twice.

Dire economic straits

Greece has already had two previous bailouts worth 240 billion euros, but they have done nothing to reduce the country's mountain of debt, which now amounts to nearly 180 percent of the country's GDP.

On June 30, it became the first developed economy to default on a huge payment to the International Monetary Fund - the same day as its EU bailout expired.

Banks in the country have remained closed, with cash rationing at ATMs, for nearly two weeks.

Failure to reach a deal at Sunday's meetings could result in Greece leaving the eurozone.

tj/jlw (AP, Reuters, AFP)