Greece facing ‘disaster’ after bailout talks with EU collapse

Greece has been warned of an impending “disaster” after crisis talks between the country’s finance minister and Eurozone counterparts broke up without agreement in Brussels. The country rejected a draft proposal put forward by European finance ministers that would see an extension of Greece’s international bailout package. Dutch finance minister Jeroen Dijsselbloem, who chaired the meeting, says Athens now has until Friday to request an extension or risk seeing the bailout expire at the end of the month. If that happens the Greek state and its banks could face a looming cash crunch.

We need more logic and less ideology.

Economics Commissioner Pierre Moscovici

Greece’s finance minister, Yanis Varoufakis, said negotiations will continue, adding he has “no doubt” an agreement will be reached that would be “therapeutic to Greece and for Europe”. But he added his country will not implement recessionary measures such as pension cuts and VAT hikes. Greece’s anti-austerity Syriza government recently swept to power on a promise to scrap the bailout as it stands. 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.

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

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