"We are looking bankruptcy in the eye. We are at a crucial turning point of an effort to save the country and a revision of the Memorandum is necessary", Dimitris Daskalopoulos, president of the Federation of Hellenic Enterprises (SEB) said on Tuesday.

Speaking at a press conference, the head of Greece's largest employers' union said the Federation will present detailed proposals on the revision of the memorandum to EU Economic Affairs Commissioner Olli Rehn on Wednesday, and to the Greek government and troika officials on Thursday.

The basic points of these proposals are: First, achieving fiscal targets for 2010 and 2011 is doubtful or impossible while taking additional tax measures will not have any results and will put the country's social stability at risk. Second, acceleration of all the structural reforms is necessary, combined with urgent measures to boost export activity and support business activity. Third, reducing the state must be the hard core of reforms along with the opening up of domestic markets.

Daskalopoulos noted that unless the government finds the necessary political courage to cut jobs in the public sector, any effort for recovery will falter, leading the country to bankruptcy.

He said the government was stalling in promoting fundamental reforms and in clashing with vested interests, thus allowing the economy to fall deeper into recession.

Daskalopoulos dismissed any talk of a restructuring the country's debt, saying a priority was to implement the commitments undertaken in the Memorandum. He opposed the idea of having coalition governments in the country, although he stressed that it was the responsibility of the political system to take the necessary action to eliminate bankruptcy risks.