The ultimate goal is to keep Greece within the eurozone, according to German spokesman Martin Jaeger.
A Greek exit from the euro would be hugely painful for the country.
Talks over the Greek debt issue have been in deadlock for five months.
The proposals put forward by Athens aim to raise €8bn, mostly through new taxes on the wealthy and businesses, early retirement restrictions, VAT increases and a cut in defence spending.
We should also be very cautious of rumours today as these can cause significant turbulence in the markets and if denied – which they usually are – can cause a sizeable swing in the opposite direction. The official spoke only on condition of anonymity because the talks were ongoing.
Greece should not limit its proposals to promises of more tax revenue and must present credible reform plans, said International Monetary Fund chief Christine Lagarde in an interview published by French magazine Challenges on Wednesday.
In spite of the standoff, many analysts and economists think a deal that would release €7.2-billion in loans left over from the current bailout, which expires on Tuesday, is still likely.
Greek prime minister Alexis Tsipras was under pressure to seal a deal before facing other European Union leaders at the summit.
But the International Monetary Fund was cautious about the mix of reforms Greece proposed, saying they rely too heavily on tax increases that can hurt the economy.
Talk of a default is “all speculation, because we’re expecting the payment to be made on June 30th and that’s what the Greek authorities have said publicly”, fund spokesman Gerry Rice said.
Penions and taxes remain the sticking points. Nowhere! This odd stance may be due to two reasons. “Are they doing this for growth or (to serve) interests?”
For its part, the ECB’s governing council is holding daily conference calls to decide whether to increase the emergency liquidity assistance (ELA) available to the Greek banking sector. Greece is in talks with creditors this week to get more bailout loans to avoid bankruptcy next week.
But Greece was still not on board, and wanted to stick to a previous plan it has offered.
The key European Union policymakers including German Chancellor Angela Merkel said they hope a final deal would be reached at Saturday’s meeting of the eurozone finance ministers that are scheduled to start at 15:00 GMT.
