The troika – the European Commission (EC), the International Monetary Fund (IMF) and the European Central Bank (ECB) – are overseeing a €240bn (£182bn) bailout package, which expires on 28 February.

But the newly elected Greek governmernt does not want the package extended, saying the bailout conditions have only put further pressures on Greece.

Greek finance minister Yanis Varoufakis and Prime Minister Alexis Tsipras have put together a new plan to replace the current bailout conditions, but the EU is refusing to budge on the terms.

The new plan includes bond swaps to reduce the country’s debt, and cutting the primary budget surplus from the 3% demanded by creditors to 1.49%.

Tsipras said an extension of the bailout would be “a perpetuation of the the mistake”, according to the BBC, and therefore Greece will not agree to it.

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Separately, Panos Kammenos, head of the Independent Greeks party which has joined the left-wing Syriza party in the coalition, has threatened to turn to Russia, China or the US if the EU refuses to reconsider the bailout terms.

If the EU and Greece do not come to an agreement, the fear is that Greece may have to exit the eurozone, jeopardising the already fragile eurozone economies and hitting European markets.

Germany has also already rejected Greece’s request for a £7bn payout in World War II reparations, calling the request “baseless”.