Greece set for austerity reform showdown

The Greek government is set to present a list of economic reforms needed to secure an extension to its bailout programme.

Greece needs to agree on a list of cost-saving reforms with its international creditors in order to receive access to new finance. Its current deal is set to expire on February 28.

Greek finance minister Nikos Pappas has said the reforms would include tough new measures to tackle tax evasion as well as cuts to the civil service.

German tabloid newspaper Bild reported that Greece had lined up €7.3bn in savings by clamping down on smuggling and going after taxes from Greek tycoons, citing government sources.

Greece's left-wing government has struggled to secure a deal that would be acceptable to its electorate as well as the hated troika.

Analysts have described the four-month extension as a loss for Greek prime minister Alexis Tsipras, who had vowed not to extend the bailout programme on its current terms.

The Greek government had "won a battle, not a war," Tsipras said on Saturday, warning that there was a "long and difficult road ahead."

If its creditors agree to the reform package, Greece would effectively stave off bankruptcy for at least four months.

Athens hopes to use this extension period to negotiate a long-term arrangement with the so-called troika of the European Union, European Central Bank and the International Monetary Fund.

The possibility of a Grexit remains on the cards if all sides cannot agree on Athens' reform programme. If creditors approve the list of reforms, it must then be approved by finance ministers from across the eurozone on Tuesday.