Greece defies creditors, seeking credit but no bailout as talks collapse

Talks between Greece and euro zone finance ministers over the country’s debt crisis broke down on Monday when Athens rejected a proposal to request a six-month extension of its international bailout package as “unacceptable”. The unexpectedly rapid collapse raised doubts about Greece’s future in the single currency area after a new leftist-led government vowed to scrap the 240 billion euro bailout, reverse austerity policies and end cooperation with EU/IMF inspectors. But with Greece running out of money, Maltese finance minister Edward Scicluna said the country faces “disaster” unless it extends the bailout, which is due to end on 28 February.

We need more logic and less ideology.

Economics Commissioner Pierre Moscovici

The European Central Bank will decide on Wednesday whether to maintain emergency lending to Greek banks that are bleeding deposits at an estimated rate of 2 billion euros a week. The state faces some heavy loan repayments in March. Seemingly determined not to be browbeaten by a chorus of EU ministers intoning that he needed to swallow Greek pride and come back to ask for the extension, Finance Minister Yanis Varoufakis, a left-wing academic economist, voiced confidence that a deal on different terms was within reach within days.

Europe will do the usual trick: It will pull a good agreement or an honorable agreement out of what seems to be an impasse.

Yanis Varoufakis, Greek Finance Minister

Europe grexit