The eurozone has given Greece until Thursday to present new proposals to secure a deal with creditors, and has called a full EU summit for Sunday.
The eurozone had expected Greece to submit fresh plans on Tuesday after its voters rejected a deal in a referendum, but no new proposals were tabled.
The European Parliament in Strasbourg is now debating Greece.
European Council President Donald Tusk told MEPs there were only “four days left” to reach agreement.
Greek PM Alexis Tsipras is also addressing the parliament. He was greeted by boos and cheers as he entered the chamber.
On the referendum, he said the Greek people “stood up and were counted – we have to listen to what they said.”
But he said detailed proposals were being drawn up to bring about agreement with Greece’s partners on resolving the debt crisis.
On Sunday, a meeting of all 28 members of the EU will be held – a day after the new Greek proposals are expected to be discussed by the eurozone finance ministers.
In Brussels, Greece has been given an ultimatum: either there will be a deal or Greece and its banks face the prospect of going bust on Monday, the BBC’s Chris Morris reports.
EU Economy Commissioner Pierre Moscovici told the BBC’s Today programme that Europe wanted to stop Greece falling out of the euro.
“The Commission does not want a Grexit. Grexit would be a terrible failure and we are fighting to avoid it.”
But, first, he said proposals must come from the Greek side.
“They know what they have to do, they know what we expect”.
Speaking at a news conference late on Tuesday, Mr Tusk said a Greek bankruptcy and the collapse of the Greek banking system would affect the whole of Europe, and that anyone who thought otherwise was naive.
He said this was now the “most critical moment in the history of the eurozone”.
French President Francois Hollande said: “It’s not just the problem of Greece – it’s the future of the European Union” that is at stake.
Meanwhile, Greek Prime Minister Alexis Tsipras said he wanted a “socially just and economically viable agreement”.
“The process will be fast. It starts in the coming hours with the aim of concluding it by the end of the week, at the latest,” he said.
Source-BBC
