Greek debt talks collapse after 30 minutes

Talks between Greece and the EuroGroup finance ministers collapsed today. Creditors are demanding that Greece agree to extend its current bailout package with the existing austerity measures intact before they will resume talks with Greece about any new financing. The new Greece government has branded this requirement as “absurd” and “unacceptable” and has refused to use the bailout package and austerity budget cuts negotiated by the last government as a basis for talks.

Financial markets are optimistic today on Greek debt deal–frankly I can’t see why

European stock markets today decided to go with the optimists who think a Greek debt deal is likely. Stocks in Athens for example rose a big 5.61%. Looking at the fine print in yesterday’s decision by the European Central Bank to extend an additional 5 billion euros in loans to Greek banks, however, I’d have to side with the pessimists.