Athens is now scrambling to deliver 16 commitments in exchange for debt relief after it failed to meet its 2018 deadline for reform. Greek prime minister Alexis Tsipiras is in a race against time to prove to the Brussels club that he is capable of putting his nation back on the path to full financial independence after creditors released Greece from its third bailout in August. And after failing to meet its deadline for reform by the end of 2018, Brussels bosses have warned Greece it must implement its compliance targets by the end of this month.
An EU source told CNBC: “They are behind schedule on what they need to deliver.”
The EU is pushing Greece to implement fiscal structural reforms, social welfare, financial sector, labour market reforms, privatisation's and public administration and justice in order to receive debt relief measures.
The stricken Mediterranean country remains the biggest threat to the future of the EU despite seven years of gruelling recession and austerity imposed from Brussels.
Greece’s crumbling position has raised fears that the country could still collapse, dragging the Euro currency down with it.
They are behind schedule on what they need to deliver
Mr Tsipras has been implementing his re-election strategy over the past six months, steering Greece out of a humiliating bailout and resolving a decades-old dispute with neighbouring Macedonia.
But with a general election no more than eight months away, his Syriza party is far behind in opinion polls.
That is despite two signature projects since last summer, evidence that the economy is climbing out of years of depression and willingness at last among investors to lend.
Mr Tsipras has since used greater fiscal freedom to scrap further pension cuts, cut property and corporate taxes and ease some social security contributions.
He also raised the minimum wage for the first time in a decade, by 11 percent.
The Greek leader also wants to extend a reduced value-added tax regime for five islands with huge migrant arrivals in past years, and to make it easier for people to pay off pension-fund arrears and bank loans, government officials said.
But eurozoone officials have warned that while Greece is expected to exceed its fiscal targets this year its reform progress is low.
After Mr Tsipras' announced the minimum wage raise last week, a meeting of eurozone deputy finance ministers responded saying: ”The atmosphere was not very positive.”
An official said: “Greece is moving back in many areas. The general political feeling is of course positive about Tsipras and what he did about Macedonia, but this is not the markets, you cannot trade one thing for the other."
One eurozone official said a late February progress report on Greek reforms "did not look good".
Associate director at IHS Markit Economics Diego Iscaro said: “There is a fine line that Greece needs to make sure it doesn't cross.
“Markets understand it's a pre-election period but Athens needs to build a post-bailout reputation of reforms."