Talks between Greece and euro-zone finance ministers over the country's debt broke down on Monday when Athens rejected a proposal to request a six-month extension of its international bailout 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.
How long Greece can keep itself afloat without international support is uncertain. 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 two billion euros a week.
Greek Finance Minister Yanis Varoufakis complained that the chair of the meeting, Dutch Finance Minister Jeroen Dijsselbloem, had refused to discuss a proposal from the executive European Commission that would have given Athens a four-month breathing space in return for the new government holding off on major policy changes.
The talks, which had been expected to last late into the night, collapsed in less than four hours.
Both sides showed signs of fraying patience, with several ministers complaining of disappointment and fearing disaster. Dijsselbloem spoke of a need to rebuild trust and Greek officials grumbled that Varoufakis was presented with an unacceptable text as soon as he walked into the room.
Dijsselbloem pleaded with the Greeks to buy themselves time to discuss the way forward calmly by requesting an extension.
