Taoiseach Enda Kenny has denied that the European Union has shown more "solidarity" to Greece's creditors than to the country's people.

Asked about an observation that just 10 per cent of the €294 billion loaned to Greece in the last five years went into the Greek economy, whilst the remaining 90 per cent went to paying off creditors, the Taoiseach said: "That suggests that the payment of the money was not followed by the necessary reforms to make it work.

"In Ireland we were able to buy out the €18 billion of IMF loans inside a four-year period . . . so the opportunity to restructure and reform is there for every country including Greece."

Mr Kenny said the Greeks were in a “very difficult position” and that it was important the proposition Athens made to the EU for a new programme made “economic sense” and was “achievable”.

“If the euro zone is to support and encourage Greece to continue being a member then it [the Greek proposal] . . . has to be realisable and achievable,” he said.

“Greece is currently facing a very stark choice – the country is bust, the banks are bust, they have neither liquidity nor solvency and if you don’t have those, then you don’t have credit and you are blocked out of the markets.”

Mr Kenny said the choice for Greece was between going down the road of introducing their own currency or “availing of the opportunity to reform and restructure and have an achievable set of goals”.

“That would mean that monies would be available to them through the ESM and the emergency liquidity funds, that solvency and liquidity would be put back into the banks and that credit would be restored.”

Expo Milano

The Taoiseach was speaking in Milan during a visit to the Irish pavilion at the Expo Milano exhibition, prior to a meeting on Saturday with his Italian opposite number, prime minister Matteo Renzi.

Asked how he saw events evolving over the next few days, the Taoiseach confessed that he did not know.

“It is hard to speculate what the actual outcome [of Sunday’s European council meeting] will be. I would hope that the situation is now so dire in Greece, and such a stark choice has be faced there, that the proposition that has to come will make economic sense and will be realisable in terms of its reform.

“At the moment, Greek banks have neither solvency nor liquidity and that situation is having a terrible impact on ordinary people throughout the country. So, I would like to see that ended, and ended by negotiation.”

As for Expo itself, Mr Kenny was full of praise for the Irish pavilion, arguing that its €6 million overall cost was money well spent.

“Expo represents a brilliant opportunity for Ireland to promote what it does best, namely food, hospitality and tourism. Over the next few months, 1.25 million people are expected to visit the Irish pavilion . . . I would say that it was a good decision by the government to participate in Expo Milano . . .”