Gabriel Sakellaridis

Greek lawmakers reacted angrily on Tuesday to concessions Athens offered in debt talks and parliament's deputy speaker warned the proposals would struggle to win approval, puncturing optimism that a deal to lift Greece out of crisis might be quickly sealed.

By Theophilos Argitis, Eleni Chrepa & Antonis Galanopoulos

Greece's cabinet was locked in talks with the prime minister ahead of a meeting on Monday that will decide the nation's future in Europe's currency bloc.

By Renee Maltezou & Andreas Rinke

Greece and its creditors stuck to their positions on Monday after the collapse of talks aimed at preventing a default and possible euro exit, while Germany?s EU commissioner said it was time to prepare for a ?state of emergency.?

Greece's government on Monday played down the prospect of submitting a new counter-proposal as sought by lenders in order to resume negotiations after a breakdown in talks over the weekend.

The International Monetary Fund lifted the stakes in Greece’s stalled debt talks on Thursday by pulling its delegation out of negotiations in Brussels. The surprise move came as the EU warned Greek Prime Minister Alexis Tsipras to stop gambling with Greece’s future and make crucial but painful reforms (such as sacrificing pensions) that would avert a devastating default.

The Greek government submitted a three-page budget proposal to its creditors in Brussels in a bid to unlock bailout funds, two international officials with direct knowledge of the discussions said.

Last week’s defiant words from the leftist SYRIZA government gave way to a more diplomatic mood on Monday, as Greek leadership tried to “mend fences” with European partners.
The developments came as G7 host Angela Merkel warned that time was running out to free-up cash left over in a second bailout package and avoid any risk of a Greek default.

A high-level Greek delegation has traveled to Brussels in the hope of finding common ground between Athens and its lenders before Prime Minister Alexis Tsipras meets German Chancellor Angela Merkel and French President Francois Hollande in Belgium on Wednesday.

Negotiations are continuing in Brussels on Monday, says Government Spokesman Gavriil Sakellaridis. A Greek delegation headed by Greek State Minister Nikos Pappas and Alt. Foreign Minister for International Economic Affairs Euclid Tsakalotos are in Brussels for meetings. The goal is to bring convergence between the Greek government and the country’s creditors.

By Mark Gilbert