Osborne: Time to 'prepare for the worst' in Greek crisis

Greece's debt crisis is a problem for all of Europe and the EU faces a choice between showing solidarity with the country and sticking to austerity policies that lead nowhere, Prime Minister Alexis Tsipras has said.

His comments come as Greece risks defaulting and a possible exit from the eurozone, amid a stalemate in debt crisis talks with its EU and IMF creditors.

During a visit to Russia, Tsipras said: "The European Union, which we are part of, should find its way back to its statutory principles: solidarity, democracy, social justice.

"By sticking to policies of austerity, and policies which harm social cohesion, which aggravate the recession, this is impossible", he added.

Russia could consider offering financial support to Greece, a Russian official has said.

But the Kremlin stressed it would have to hear a proposal from Greece before taking any action.

Asked whether Russia would be ready to offer aid, Dmitry Peskov urged reporters to wait for the conclusion of talks between Greek Prime Minister Alexis Tsipras and Russian President Vladimir Putin later today.

"To address this question, we first need to hear some kind of proposal, some kind of initiative from our Greek partners. Let's wait first for the talks .. and then we will inform you," he said.

Chancellor George Osborne has said that Europe needs to "prepare for worst" as he arrived at a meeting of finance ministers in Luxembourg.

Mr Osborne said that Treasury officials would now go on to complete preparations to protect the British economy from the effects of a disorderly "Grexit" by Athens from the single currency.

Mr Osborne said: "We have entered the eleventh hour of this Greek crisis, and we urge the Greek government to do a deal before it is too late. We hope for the best, but we now must be prepared for the worst.

"In the UK we've taken the measures to increase our economic security so we can deal with risks like this from abroad. And clearly now we must go on and complete that plan."

Greek Prime Minister Alexis Tsipras has said there will be a solution to the debt crisis which will allow his country to return to growth while staying in the Eurozone.

He also welcomed a planned Eurozone emergency summit on Monday that will try to avert a Greek default.

In a statement Mr Tsipras said: "The (Eurozone) leaders summit on Monday is a positive development on the road toward a deal.

"All those who are betting on crisis and terror scenarios will be proven wrong.

"There will be a solution based on respecting EU rules and democracy which would allow Greece to return to growth in the Euro," he added.

The Greek Finance Minister has said the proposals he put forward today offered "deep reforms" for the Greek economy and would solve the crisis.

Yanis Varoufakis said the proposals sent a "powerful message" which would put an end to the "Greek drama."

He also criticised the President of the Eurogroup Jeroen Dijsselbloem saying that he was only looking at the Greek's responsibilities.

But there was some hope, he said, as both sides are "very close" in regard to fiscal issues.

Greeks have spoken about their concerns for themselves and their children after debt crisis talks ended today with little progress made.

People have been withdrawing billions of pounds of savings from their bank accounts over fears that Greece may have to leave the euro zone.

The President of the European Council Donald Tusk has called a Euro Summit meeting for Monday.

It comes after no deal was reached at the Eurogroup meeting between fiance ministers in Luxembourg.

The president of the Eurogroup has said that plans put forward by Greece are not "serious" or "credible" as debt negotiations stall.

Jeroen Dijsselbloem, who heads the group of 19 finance ministers in the euro zone, said little progress had been made.

But he remained optimistic that a deal could be reached before the deadline of June 30.

No deal has been reached to resolve the Greece debt crisis at the meeting of 19 euro zone finance ministers in Luxembourg.

The European Commission Vice-President says that Greece needs to "engage seriously in negotiations".

Greece has to meet repayments on its 1.6 billion euro debt on June 30.