Greek bailout: Crisis escalates as eurogroup talks break up
Rolling coverage as the high-stakes negotiations over Greece's financial programme hit problems, with eurogroup insisting Athens must ask for a bailout extension
- Latest: Greece's Varoufakis hits back
- Summary: crisis moves up a notch
- Press conference - highlights start here
- Talks collapse after leak
- Greece rejects draft proposal
8.51pm GMT
Peter Spiegel of the Financial Times says there's confusion over why Greece would have signed the original draft statement prepared by Pierre Moscovici, but not the new one presented by Jeroen Dijsselbloem (as Yanis Varoufakis explained earlier)
No #eurozone official I talked to can figure out why @pierremoscovici draft ok to #Greece but not other one. They say no diff on substance
8.32pm GMT
Instant reaction to the Varoufakis press conference (if you missed it, highlights start here)
Don't think I've ever heard a finance minister as lucid, erudite & intelligent as @yanisvaroufakis. Not sure if that helps in euro talks tho
Highlight of Varoufakis presser for me was story of Moscovici draft that was withdrawn. Why don't they just leak that one too? #Greece
Varoufakis will so a deal if it says 'extension of loans' rather than 'programme'. He also believes the EU operates in realm of rationality
#Varoufakis says 'no doubt' Greece will strike aid accord. So does this mean he's softening his stance?
Strong stuff from Greek fin min on indivisibility of Europe; interesting to see how this plays when Russian sanctions back on agenda.
8.26pm GMT
Last question to Yanis Varoufakis: What will markets make of the situation, and is the ball in Greece's court or the eurogroup's?
To talk about balls in court makes it a game, the Greek finance minister responds. This is not a game. We don't have the right to play games with the future of Europe.
Europe will do the usual trick. It will pull a good agreement, an honourable agreement out of what seems to be an impasse. We did it last Wednesday, we will do it again now.
8.21pm GMT
What will happen if Greece reaches March 1st without a deal?
I've been taught to avoid hypothetical questions, Varoufakis smiles.
8.10pm GMT
Yanis Varoufakis repeats that he was prepared to apply for an extension of Greece's loan agreement today (before the text was changed).
Greece was even prepared to add extra conditions, he declares, to demonstate its commitment to its partners.
I have no doubt that within the next 48 hours Europe will come together and find the phrasing so we can move on to do the real work to find the common ground [and find a new situation] that is good for Greece and Europe.
8.10pm GMT
Varoufakis:"democracy changes the facts on the ground and we are a government that has a critique of the current programme."
8.06pm GMT
Tonight's draft statement from the eurogroup is clearly a provocation, so isn't it proof that Greece must leave the eurozone?
Varoufakis denies it, explaining:
Europe is going through the difficult process of understanding that Greece has a new government committed to changing a programme that has clearly failed in the eyes of everyone who doesn't have a vested interest.
8.01pm GMT
We have committed to some conditionality, but it's up to the eurogroup to define what flexibility they are offering, Varoufakis says.
8.00pm GMT
If you're not playing game theory, or poker, can you assure your electors that they won't soon be playing Monopoly with fake money?
I always play Monopoly with real Monopoly money, Varoufakis replies.
Varoufakis: goes into game theory shtick - wants to change motives of Eurogroup and not act from selfishness
7.56pm GMT
Onto questions.
You've been given an ultimatum to ask for a bailout extension by Friday, so what will you do?
7.54pm GMT
It would be an act of subterfuge if we agreed to complete a programme whose logic we have rejected says @yanisvaroufakis #Greece #Eurogroup
7.54pm GMT
Varoufakis states that Pierre Moscovici presented him today with a draft communique that he was "perfectly happy to sign there & then" .
But then, he claims, it was withdrawn by eurozone chief Jeroen Dijsselbloem in favour of a different draft that unwound all the progress made by officials in recent ways.
7.49pm GMT
Varoufakis: it would be simply wrong for the new Greek government to simply agree to an unchanged bailout extension, having won an election on the basis of reforming it.
Varoufakis: last Weds, turned down demand to "extend and successfully conclude" current program;
7.47pm GMT
#Varoufakis: I'm sure that we will have an agreement, one that is conducive to #Greece and Europe pic.twitter.com/eDn0UGP6wd
7.47pm GMT
Varoufakis says that he is happy to report that today's talks took place in a collegiate spirit.
And he has no doubt that the talks will continue, and no doubts that there will be an agreement - one that is good for Greece and Europe.
7.43pm GMT
Yanis Varoufakis has arrived for his press conference - livestream here.
7.43pm GMT
The early break-up of today's eurogroup talks was "unprecedented", says Raoul Ruparel of the Open Europe thinktank. It shows that the eurogroup is playing hardball with Greece.
"That escalated quickly", as Ron Burgundy might have put it.
After a relatively quiet weekend and some optimistic tones - albeit mainly from the Greek government rather than the rest of the Eurozone - tonight's Eurogroup meeting of Eurozone finance ministers was broken up after less than 30 minutes. Throughout the entire Eurozone crisis we have not seen a finance ministers' meeting going so badly. In fact, at one point the talks descended into outright farce.
It is looking increasingly alone and the best outcome it can probably hope for in the short term is getting some favourable phrasing or wording in the extension. Whether or not this will fly with the hard-line left-wing of the Syriza party or with the general public is another question altogether.
Here's our take on tonight's #Eurogroup meeting - red lines are emerging on both sides with a big divide to bridge http://t.co/Pj6F4O5NGf
7.37pm GMT
Good news; Greek finance minister Yanis Varoufakis's press conference will be streamed live, here.
LIVE Eurogroup meeting - Greek national briefing
Briefing room mobbed for Varoufakis press conference pic.twitter.com/qitwJixFhD
7.36pm GMT
At least SYRIZA has managed to unite the other 18 a countries. Long time since Berlin, Paris, Rome & the others were so joined up. #Greece
7.32pm GMT
Greece is effectively asking for help from rich and poor, creditors and debtors alike. Not so easy to get sympathy on that basis.
dont see breakup of Brussels talks as anything but bad news. All talk of brinkmanship/deadlines is tosh, if trust bank is bust.
The problem is that Greece is asking for something contrary to Treaties A huge legal as well as financial problem for Germany @johnycassidy
As I tweeted earlier Dijsselbloem is the last man the Eurofederalists want to have in charge of Greek negotiations
It would be silly to read too much into the breakdown of #Eurogroup talks 2day. We've been here b4 & a compromise still most likely outcome
The idea of a #Grexit by accident, is silly... In the unlikely event, it would be a deliberate call made at the highest political level
7.25pm GMT
Journalists in Brussels are now waiting for Greece's finance minister to give his side of the story:
Waiting for Varoufakis. Is this the moment people start saying Lafazanis & Lapavitsas just could be right? #Grexit pic.twitter.com/93b78bgqDo
7.19pm GMT
Wow. A quick recap must be in order, after a couple of fast-moving hours.
The crisis over Greece's bailout programme has escalated after crunch talks in Brussels today broke up early, with the two sides as divided as ever.
Draft statement from #Eurogroup with Varoufakis' notes. Sources close to talks say this was presented at start of mtg pic.twitter.com/DHjd9W4v7P
I've been told #Eurogroup broke up even before finance ministers got a chance to discuss draft #Greece statement
Glimmers of a classic Brussels compromise mooted by Dijsselbloem: a bridge is a different word for an extension.
We come back to logic. I want us to be logical, not ideological.
6.58pm GMT
Why doesn't the eurogroup understand that Greece feels trapped by the commitments of the previous government?
Eurogroup chief Dijsselbloem replies that there is some flexibility in the current bailout programme, but that Athens must also stick to its main principles and targets.
6.52pm GMT
Is Friday the new deadline?
There could be a new eurogroup meeting on Friday, but only if Greece asks for a bailout extension, Dijsselbloem replies.
Breaking: .@J_Dijsselbloem Donald Tusk has no intention of calling a eurozone summit next week.
6.50pm GMT
Was there any discussion about capital controls in Greece?
Dijsselbloem indicates that there was not.
No discussion of capital controls at the eurogroup meeting on Greece, says @J_Dijsselbloem
6.50pm GMT
Greece will lose a10.9bn from its bank stability fund on 28 Feb if no extension, says @J_Dijsselbloem. That means banks lose a key buffer
6.49pm GMT
Why hasn't the eurogroup adjusted the terms of a bailout extension to recognise the fact there's been an election in Greece?
Moscovici takes this question -- he says that there was support for the idea that Greece would only continue with 70% of the bailout. But the technical work in recent days didn't show exactly what the 30% would be.
We come back to logic. I want us to be logical, not ideological.
6.43pm GMT
Eurogroup rejects Greece's bridge to nowhere in favour of an extension to nowhere.
6.43pm GMT
Is the International Monetary Fund worried?
Christine Lagarde explains that the IMF's programme expires in March 2016. A review of that programme is overdue.
6.39pm GMT
Some drafts have been prepared that upset the Greek government in recent days, so what's happening?
Dijsselbloem says that many proposals have been drafted, some by the eurogroup, some by others, some by Greece.
6.37pm GMT
Pierre Moscovici repeats that an extension is the only option for Greece:
Moscovici: common ground of thinking must be extension of programme. without that we cannot start whole progress #greece #eurogroup
6.36pm GMT
.@J_Dijsselbloem: Within the framework of a program things can change, but program must stay broadly on track #Greece
6.35pm GMT
Is there any support for lowering Greece's budget surplus targets?
Dijsselbloem: That's really a question for the Institutions (the ECB, the IMF and the EC -- the old Troika). But there is some flexibility within the programme which could be offered, while still keeping it broadly on track.
6.34pm GMT
Next question: Why can't we simply call the extension a bridging programme?
Dijsselbloem explains that there has to be a commitment from Greece to accept the main features of the programme, that the budget targets can't derail. So it's fundamentally an extension of the current programme.
6.32pm GMT
Onto Questions.
The FT's Peter Spiegel goes first. Given Greece doesn't want an extension, are we looking at a third bailout?
Different words, but it could be the same solution....but that request must come from the Greek government.
6.29pm GMT
EU commissioner Pierre Moscovici says there is no alternative to a bailout extension:
Moscovici: There is no alternative to a request for extension of the current program #Greece
6.28pm GMT
dijsselbloem says meeting debated steps forwards and general feeling is that best way is for greeks to seek an extension of the program
6.27pm GMT
Could be an extra eurogroup on friday says Dijsselbloem, but suggests that is the final deadline.
6.26pm GMT
Time is short, he continues. If a request for a bailout extension comes in, then we could have another eurogroup meeting on Friday.
6.26pm GMT
Dijsselbloem continues to explain that a bailout extension request from Greece should come with several commitments, including:
There was a very strong feeling... that the next step must come from the Greek authorities.
Flexibility is possible, but there should be commitment from Greek authorities to successfully conclude programme - Dijsselbloem
6.22pm GMT
Onto Greece. Dijsselbloem explains that the eurogroup didn't get an agreement last Wednesday. Then he and Greek PM Tsipras agreed to start technical work on the bailout, and to examine how Greece could cover the 30% of their bailout programme which they want to abandon.
Today officials from the "institutions" reported back.... ministers had a slight sense of disappointment over the work, and that there was "no firm common ground" on what a new programme would look like.
6.18pm GMT
Dijsselbloem subtweeting Greece right now by praising Portugal's economy.
6.18pm GMT
On Cyprus, the eurogroup "took stock" of its bailout programme; the main hurdle is the demand for new laws for foreclosures (to help banks act on bad loans), which Cyprus MPs are refusing to pass.
That law needs to be approved so that the programme can continue, Dijsselbloem says.
6.17pm GMT
Eurogroup chief Jeroen Dijsselbloem begins by covering other business from today's meeting.
The eurogroup has decided to support Portugal's plan to repay its IMF loans early, to take advantage of current low borrowing costs.
6.15pm GMT
Reminder, there's a live feed here.
6.14pm GMT
Here we go.... Dijsselbloem, Lagarde, Regling and Moscovici have arrived.
6.14pm GMT
Some instant reaction to the dramatic developments in Brussels in the last hour:
So it looks like operation 'talk all night + achieve nothing' is being replaced by operation 'let them sweat' #Greece
This is not the end, of course. New Eurogroup meeting likely this week. But today's episode has certainly created some bad blood. #Greece
We've come to the "Take it or leave it" moment. #Greece #Eurogroup
6.13pm GMT
Journalists are filing into the press conference room now.....
6.10pm GMT
This is the second time in five days that a eurogroup meeting has broken up without any progress on Greece.
Was hoping for a longer press conference at this Eurogroup, but chances seem slim...
6.05pm GMT
What a mess! The eurogroup has broken up, in acrimony after the leaking of the draft statement which Greece was unable to accept.
A press conference has been called. It's being streamed live here.
i can't watch: que sera sera RT @minefornothing LINK TO PRESS CONFERENCE http://t.co/BGafAM5mur "
6.02pm GMT
Looks like its over and a press conference to follow:
#Eurogroup chief @J_Dijsselbloem will be joined by @pierremoscovici & @ESM_Press Chief Klaus Regling http://t.co/OhmPuGfSCE
5.48pm GMT
Greek officials are saying they are still negotiating in the eurogroup, Reuters is reporting.
They say the rejected draft proposal came from eurogroup chief Jeroen Dijsselbloem.
5.45pm GMT
Having read the draft #Eurogroup statement it seems obvious #Greece was never going to agree, strange approach from both sides.
5.42pm GMT
If true, this is first time a Eurogroup meeting has been put on hold. SYRIZA just leaking everything to press in real time. Extraordinary
5.40pm GMT
The second eurogroup statement rejected by Greece pic.twitter.com/QbrHWE4cBm
5.37pm GMT
#awk... EU Official Says Eurogroup Meeting Put on Hold
5.35pm GMT
Reuters appears to have the draft eurogroup statement and there seems little sign of compromise on the EU creditors side, if this is what they expected to reach agreement on tonight:
5.27pm GMT
Meanwhile, Greek banks could run out of collateral for new loans in 14 weeks, according to JP Morgan.
It bases this on the fact they are losing around a2bn euros of deposits a week, and assumes that outflows continue at this pace. Reuters explains:
This is based on its calculation that of a maximum a108bn of financing available from the European Central Bank and Greek central bank, Greek banks have already used up a80bn, leaving them with a28bn if needed.
5.20pm GMT
Greek gov't sources say option of continuing memorandum is "off table" and trying to bring it back is "waste of time" #Greece #Eurogroup
5.18pm GMT
There'll be no deal so no all-nighter here at eurogroup. Midnight. Still leaves tricky issue of a statement after the debacle last Weds
Greek govt official says no agreement possible at Eurogroup meeting. pic.twitter.com/DIbRGPrQqA
5.15pm GMT
Here's the seating plan for the eurogroup meeting today pic.twitter.com/Zoe8kquxMB
5.01pm GMT
Where we left off Wed MT @YanniKouts #Greece govt: #Eurogroup discussed 'unreasonable', 'unacceptable' draft insisting on extending bailout
4.59pm GMT
Although this is not looking good for an agreement today, according to these Reuters snaps:
4.44pm GMT
But that may not mean an early cut:
Apparently Varoufakis has been saying he is determined to negotiate through the night if necessarily. Other finmins say midnight at latest
4.30pm GMT
My colleague Jennifer Rankin is in Brussels and reports that the main event appears to be getting underway:
Eurogroup ministers have now dispensed with the other bits of the agenda: discussions on #Greece are underway.
4.21pm GMT
And as the eurogroup talks continue, shares in Greece have fallen back and bond yields have risen.
The Athens stock market has closed down 3.83% at 859.7, after climbing to a two month high on Friday in anticipation of a deal.
4.16pm GMT
A reminder of what the eurogroup has on its agenda today:
The Eurogroup will continue the discussion on the situation in Greece, considering the upcoming expiry of Greece's current economic adjustment programme.
The ministers will also discuss the economic situation in the euro area and will look into the European Commission's winter forecast, which was published on 5 February 2015.
3.02pm GMT
Ok. Sounds like @yanisvaroufakis has just arrived at #Eurogroup meeting. We can commence our waiting.
2.58pm GMT
Greece's negotiating tactics might be irritating to some of the Europeans (Germany in particular) but they seem to be playing well at home:
Marc poll for @EFSYNTAKTON Greek gov't is negotiating Correctly 58% Probably correctly 23.5% Wrongly 14% N/A 4.3% #Greece
2.56pm GMT
Sounds like the eurogroup meeting might have started without the main attraction being present:
Source in the room upstairs says #Eurogroup has started without @yanisvaroufakis. "Still not here," says official.
.@SpiegelPeter "Let's just crack on, shall we. We'll get it finished by the time he gets here and he can just sign at the bottom".
.@YiannisMouzakis In fairness, #Greece is not the only item on the #Eurogroup agenda tonight, unlike last week.
@YiannisMouzakis Actually, I suspect it's the last thing on the agenda. Gotta get through the other stuff quickly before the main event.
2.48pm GMT
Northern/Southern dividend becoming evident with EU fin min comments thus far, Spain's Guindos expects an agreement...#Eurogroup 50/50
2.39pm GMT
You can see videoclips of all the finance ministers arriving in Brussels, here.
2.13pm GMT
Spanish finance minister Luis De Guindos has declared that he, like Yanis Varoufakis, has a red line that can't be broken; Greece must repay its debts.
Spanish FinMin Luis de Guindos: "Our red line is that [Greek] loans must be paid back in full". #Greece
#Eurogroup - #ES #De_Guindos @_minecogob : "We will try to reach an agreement" #Greece http://t.co/CDPS13hcmu pic.twitter.com/qUzeJVbJKc
2.08pm GMT
It's not all doom and gloom in Brussels -- Lithuania's finance chief has arrived in positive spirits.
Aww, Lithuania.The newest to the euro party & most optimistic finance minister so far today. "I'm in a positive mood," says Rimantas AadA3/4ius
2.03pm GMT
Amid the flurry of newsflashes from Brussels, Finland has also taken a hard line on Greece:
Finnish FinMin Rinne: Finland isn't ready to discuss a new programme. Current programme is the basis for negotiations. #Eurogroup
2.02pm GMT
Peter Kazimir, Slovakia's finance minister, has also hinted that another eurogroup meeting will be needed to resolve this crisis.
Slovak minister @KazimirPeter also says #eurogroup will most likely need one more meeting, later this week to negotiatie with #Greece.
1.56pm GMT
Luxembourg's finance minister, Pierre Gramegnam, told journalists outside the eurogroup that Greece needs to make its position clear:
#Gramegna Fin Min of Luxembourg: We will discover the red lines today, nothing's been put on the table yet. #Greece #Eurogroup
1.53pm GMT
Michael Noonan also wants Greece to put 'concrete proposals' on the table for finance ministers to discuss.
1.52pm GMT
Oh gawd....
Irish FinMin Noonan: There is a remote possibility for a new Eurogroup mtng on Friday if talks today fail. #Greece
1.51pm GMT
Next up - Irish finance minister Michael Noonan. He tells reporters that nothing which happened over the weekend could be called a breakthrough for Greece (fair enough)
Irish Fin Min Noonan: today is a continuation of discussion going on at weekend, don't know yet what specific #Greece requests are
1.49pm GMT
French finance minister Michel Sapin has arrived, telling reporters that a 'good solution' would be that Greece's current programme is extended, to give time for talks.
1.46pm GMT
Austria's finance minister, Hans Joerg Schelling, just told reporters in Brussels that Greece cannot renegotiate the terms of its current bailout. The eurogroup will try to make progress, he added, but time is short...
Arrival Austrian finmin Schelling at eurogroup: solution greece "a problem of days, not of weks"
1.39pm GMT
Speaking of pessimism.....Wolfgang Schiuble has just arrived at the eurogroup meeting, telling reporters that the ball is in Greece's court:
Here are the Reuters newsflashes:
Schaeuble upon arriving in Brussels: "The decision is up to Greece." Doesn't sound like a man who wants to budge. #Greece
#Schaeuble doesn't sound too confident ahead of Eurogroup meeting!
1.18pm GMT
There's little hope of a breakthrough today over Greece's bailout, as eurozone finance ministers prepare to hold fresh talks.
As finance minister of a small, fiscally stressed nation lacking its own central bank and seen by many of our partners as a problem debtor, I am convinced that we have one option only: to shun any temptation to treat this pivotal moment as an experiment in strategizing and, instead, to present honestly the facts concerning Greece's social economy, table our proposals for regrowing Greece, explain why these are in Europe's interest, and reveal the red lines beyond which logic and duty prevent us from going.
Acc 2 @capitalgr sources, meeting between Varoufakis-Dijsselbloem lasted only 15 minutes, indicative of the mood... #Greece
"I feel sorry for the Greeks at the moment. They've elected a government which is currently acting irresponsibly."
"I feel sorry for the Greeks" _ Link to Schaeuble interview http://t.co/l5XLrSy3sB #Greece @DLF pic.twitter.com/zvmi72T0RN
"I think it is a misjudgment by Greece. If you look at the repayment needs to which Greece committed itself again at the last meeting, then they need money too, not just time,"
"The Germans are right from a certain point of view. Greece, not the government of today, the country, signed a number of agreements. They must respect those agreements independently of the change of government.
But the Greeks say, and they are right, I support them, 'we have just changed government, so we are not going to do everything as before.
"By all accounts, it seems that Greece and the broader Euro-Zone are on a collision course: the Syriza-led government doesn't seem ready to break its electoral promises to end austerity; and the German-led creditor bloc doesn't seem ready to allow for debt forgiveness away from the current program."
Athens is preparing itself for the need to hold another Eurogroup meeting soon, potentially even an extraordinary summit of the European Council to resolve the issue at the level of heads of state and governments.
Although some ways of, we do believe the contours of an agreement are beginning to emerge. Greece will win its preferred choice of framework. This is likely to be a full, new, ESM bailout, not an extension of the program that currently exists. Germany, however, will win on the substance.
The reforms included in the new program are likely to be much more consistent with Germany's preferences, over issues such as the fiscal primary surplus, privatizations and labor market reform, as time elapses, and the Greek government's negotiating leverage slowly begins to erode.
Excellent from @duncanweldon on where things stand in Greece. Read the whole thing. https://t.co/pegBLPGJqy pic.twitter.com/hJtPIwrbjc
12.59pm GMT
There is "negligible chance" of a deal today, reckons Wolf Piccoli of Teneo Intelligence.
He believes an "extraordinary summit" of EC leaders may be needed to tackle the crisis.
The Greek government has already been briefing local media that no agreement will be reached today. Similarly, German Finance Minister Wolfgang Schaeuble declared on Monday morning that based on technical talks held over the weekend, he was sceptical of the chances for a deal. Athens is preparing itself for the need to hold another Eurorgoup meeting soon, potentially even an extraordinary summit of the European Council to resolve the issue at the level of heads of state and governments.
The latter might indicate that Prime Minister Alexis Tsipras still believes that a mere political deal was achievable - if so, this will soon turn out to be unrealistic. Led by Germany, Greece's international creditors appear determined to hold their line and force Athens into providing a specific reform program that preserves the gist of measures enacted under the current program. With two weeks to go until the current program expires, policy-makers in Berlin feel that there is no need to give in too quickly to a government that has still been unwilling or unable to substantiate its own plans.
12.39pm GMT
Sky News's Ed Conway reports that there are technical glitches at the EC's offices in Brussels:
Computers here at Commission broken, so no security badges for journalists. "It'll work in five minutes," says EC man. "Five Greek minutes"
12.33pm GMT
For an insight into Greece's negotiating strategy, do check out today's New York Times.
Yanis Varoufakis has written a column for the NYT, in which he's adamant that he's not playing with game theory (in which he's an expert). Instead, the Greek finance minister insists that he's simply presenting Greece's position honestly.
I am often asked: What if the only way you can secure funding is to cross your red lines and accept measures that you consider to be part of the problem, rather than of its solution? Faithful to the principle that I have no right to bluff, my answer is: The lines that we have presented as red will not be crossed. Otherwise, they would not be truly red, but merely a bluff.
But what if this brings your people much pain? I am asked. Surely you must be bluffing.
Worth reading this @yanisvaroufakis op-ed in @NYTimes. He presents a v hard line. Not sure where compromise is found http://t.co/zIcygjV7Ga
12.23pm GMT
Apparently Varoufakis and Dijsselbloem have now concluded their pre-eurogroup meeting:
#Greece Varoufakis - Dijsselbloem meeting concluded in Brussels #eurogroup
12.20pm GMT
Pierre Moscovici, the EU's financial commissioner, has just been doorstepped in Brussels.
He told reporters that the eurogroup will seek a "positive conclusion" on Greece:
#Eurogroup - Doorstep @EU_Commission @pierremoscovici on a possible agreement with #Greece http://t.co/InZmDlbUVE pic.twitter.com/bdeIlRUckG
12.05pm GMT
The ANA newswire says Yanis Varoufakis and Jeroen Dijsselbloem were expected to meet for talks ahead of the eurogroup meeting this afternoon.
11.58am GMT
PS: Here's a couple of screengrabs from this morning's videoclip, in case you can't play it on your device:
11.51am GMT
The European Council newsroom has uploaded a videoclip showing eurogroup chief Jeroen Dijsselbloem and Greek finance minister Yanis Varoufakis arriving at today's meeting.
11.36am GMT
The Bundesbank has urged Greece's commercial banks not to buy more Greek government debt.
"Extending the liquidity requirements by taking short-term Greek state bonds in the coming weeks would run contrary to this."
An upbeat Bundesbank calls speed, strength of German pick up 'Remarkable.' 'Understandable' that German Growth Forecasts 'Markedly Higher.'
11.19am GMT
Nick Malkoutzis, deputy editor at Greek newspaper Kathimerini, isn't impressed by the war of words over who is more irresponsible:
How encouraging that preparation for today's #Eurogroup has begun with name calling. Wedgies to follow doorsteps this afternoon? #Greece
Decision day on #Greece bailout. Debt deal possible but key is willingness to continue reforms. Hard, politically, for Syriza to give ground
11.08am GMT
Finance ministers should be arriving at the eurogroup meeting in three hours time; hopefully they'll speak to the press assembled outside.
Doorstep #Eurogroup at around 15.00.
10.56am GMT
Despite the discouraging noises this morning, Kit Juckes, currency strategist at Socii(C)ti(C) Gi(C)ni(C)rale, reckons the eurozone will muddle through this immediate crisis:
Kicking cans down roads is the EU's forte and the most likely outcome of negotiations with Greece is still that a temporary deal is reached so that talks can continue and funding be maintained for now.
10.44am GMT
Back in Athens, government spokesman Gavriil Sakellaridis has also insisted that they're serious about reaching a deal with eurozone partners:
#Greece spox:We want a solution on a politic level,we dont see it as a poker.We dont bluff. Govt's intention is 2reach a deal w the partners
10.18am GMT
Why was the EU's trade surplus so much smaller than the eurozone's last year? Take a bow, British consumers:
Meanwhile, wider EU trade surplus only a24 billion, due to the valiant efforts of the UK to consume *everything in the world*
10.14am GMT
It's all kicking off, even before finance ministers arrive in Brussels.
Greece's government has hit back at Wolfgang Schiuble's claim that Athens is behaving irresponsibly, arguing that Berlin is just as culpable for the current deadlock.
#Greece govt spox Sakellaridis re Schaeuble's comments: Well, I could say #Germany's behaviour is irresponsible too
#Eurogroup mood music: "I'm sorry for Greeks. They elected a govt which is behaving rather irresponsibly." -Schiuble http://t.co/fFBS8nmX36
10.08am GMT
Just in. The eurozone's trade surplus has widened again.
The single currency region exported a24.3bn more goods than it imported in December, up from a a13.6bn surplus in December 2013.
Euro area international trade in goods surplus a195bn in 2014, a24bn surplus for EU #Eurostat http://t.co/KAcSeplYDl pic.twitter.com/GtNfPZKXCb
9.54am GMT
London newspaper CityAM has published a handy breakdown of the new deal which Greece is seeking; and the likelihood of each part being agreed:
Nice @CityAM graphic highlighting @OpenEurope assessment of #Greece position at #Eurogroup http://t.co/5d4E0oFVGH pic.twitter.com/6fZM8XW4Wh
9.47am GMT
The uncertainty over Greece hasn't hurt the euro today, which is up around 0.2% against the US dollar at $1.1408.
But the single currency could weaken if there's no progress in Brussels. Susanne Galler, a strategist with Jefferies in London, told Reuters:
"The market consensus is for them to do a deal by the end of this week. But we think that if there's no deal today and the clock starts ticking then the euro will look increasingly vulnerable."
9.31am GMT
German finance minister Wolfgang Schiuble also accused the new Greek government of behaving 'irresponsibly' during this morning's radio interview, reports Agence France-Presse.
AFP reports:
Schiuble, who was recently caricatured in the Greek press as wearing a Nazi-era army uniform, hit out at the insults Greece has dealt to its eurozone partners.
"I feel sorry for the Greeks at the moment. They've elected a government which is currently acting irresponsibly," Schiuble said.
9.20am GMT
Marc Ostwald of ADM Investor Services is also downbeat about how much progress we'll see today:
"It appears unlikely that there will be even a short-term 'bridge' agreement between Greece and the Euro group at today's meeting, but it is to be hoped that some further common ground can be found."
9.19am GMT
I'm en route to Brussels for what was billed as the crunch eurogroup meeting on Greece. It looks increasingly like ending in discord (again)
Meanwhile, Eurogroup officials are sitting down in Brussels now, to work on the technicalities of today's meeting.
Euro Working Group (EWG) at 10.30 (CET), #Eurogroup officially starts at 3pm. #Greece #economy #ec #ecb #imf
9.18am GMT
Another worrying sign: Investors are selling out of Greek bonds this morning.
The yields (or interest rate) on Greek debt has risen, indicating that it's seen as riskier.
9.04am GMT
8.55am GMT
Fears that this afternoon's eurogroup meeting won't break the deadlock between Greece and its creditors have hit shares in Athens.
The main ATG stock market fell over 4% in early trading, with the banking sector falling over 8%.
#Greece Athens stock excange -4.33%, banks -8.58% after minutes in session
8.53am GMT
The FT's Peter Spiegel also fears today's meeting won't deliver a break-through deal.
All signals seem to suggest no #Greece deal tonight at #Eurogroup. So next question is: how hard a deadline is today, really?
8.48am GMT
"It's a day ending in 'y' so it must be another crucial day for the Greek debt crisis," says a weary-sounding Jeremy Cook of World First.
He explains why it's important that some progress is made today:
Alexis Tsipras and Yanis Varoufakis have until the end of the month to negotiate an extension of credit terms for Greece. The current bailout package expires on February 28th. A deal today would give other European parliaments just less than a fortnight to vote on the extension and form some kind of consensus and agreement around the rehabilitation of the Greek state.
Late on Thursday the European Central Bank extended the amount of money it was willing to provide to Greek banks in a bid to shore up liquidity within the country. Reports over the weekend suggest that the pace of withdrawal from Greek banks has increased in the past week to around EUR200m a day.
8.24am GMT
Europe's stock markets are dipping in early trading, as traders react to the generally negative comments from finance ministers this morning.
The FTSE 100 is down 15 points, or -0.23%, at 6857, while Germany's DAX has dropped by 29 points, or 0.3%.
Investors are waiting for proof of real progress on both the Greek debt negotiations (extended talks expected, still significant gaps between both sides) and the ceasefire in Ukraine (tentative at best).
8.14am GMT
Thousands of Greek citizens took to the streets last night to show their support for Greece's negotiators in Brussels today:
#Greece today Trafalgar Square was yours; Our solidarity with you #Syriza pic.twitter.com/KFXUJ44rwm
8.03am GMT
The finance ministers of Austria and Malta have also been speaking this morning, and neither sound keen to grant Greece much help:
Austrian MinFin on German tv: if you need a loan, don't go to your bank, insult the director and then try to re-negotiate conditions
*MALTA FIN MIN SAYS GREECE ASKING FOR `IMPOSSIBLE FAVORS'
7.59am GMT
France's finance minister, Michel Sapin, has also hit the airwaves this morning to argue that Greece must respect European rules.
Speaking on France 2 television a few minutes ago, Sapin warned that Greece would face "huge dangers" if it left the eurozone.
"The Germans are right from a certain point of view. Greece, not the government of today, the country, signed a number of agreements. They must respect those agreements independently of the change of government.
But the Greeks say, and they are right, I support them, 'we have just changed government, so we are not going to do everything as before."
#Greece | *FRANCE'S SAPIN SAYS THERE'S A `CHANCE' OF ACCORD ON GREECE TODAY ...Schauble not on same page clearly
7.45am GMT
Germany's finance minister, Wolfgang Schiuble, is not optimistic that Greece and its creditors will reach a deal today.
"From what I've heard about the technical talks over the weekend, I'm very sceptical, but we will get a report today and then we'll see."
Neither side optimistic on #Eurogroup. Schaeuble: very pessimistic on quick result. #Greece: it will be difficult, decision not certain.
7.38am GMT
Good morning.
It's another crunch day in the battle between Greece and its creditors over its bailout programme.
Monday's #Eurogroup agenda includes #Greece, #Cyprus, #Portugal: http://t.co/0SaoqOBFEb.
"I expect difficult negotiations on Monday. But I am full of confidence.
"I am in favour of a solution where everyone wins. I want a win-win solution. I want to save Greece from tragedy and Europe from a split."
Most likely outcome Monday: A typical Euro fudge formula that the creditors will call 'extension' &the Greek govt will call 'transformation'
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