Video: Your view on EU as Greece bailout talks collapse

Donald Tusk, who chairs meetings of European leaders, called an emergency summit for Monday to “urgently discuss the situation of Greece at the highest political level”.

The announcement came as Jeroen Dijsselbloem, the head of the Eurogroup, said Greece needed to seize a “last opportunity” to reach a deal with its creditors.

It means Greek prime minister Alexis Tsipras will face off with his peers, including German chancellor Angela Merkel, with the threat of an exit from the euro still looming.

Mr Dijsselbloem said no progress was made in discussions about Greece’s debt in Luxembourg yesterday, but added that a deal was still possible and that he and his peers were “very committed” to keeping Greece in the eurozone.

“Greece needs to become financially independent,” he said. “Any deal that simply doesn’t deliver that... would be also a bad deal for the Greek people.”

Officials acknowledged contingency plans were being made in case Greece does exit the euro.

The country needs help to meet debt repayments, starting with E1.6bn (£1.1bn) owed to the International Monetary Fund.