Is Greece Edging Closer To Euro Exit?

No-one expected the Eurogroup summit to end all the differences between Greece and the eurozone countries behind its bailout.

But, equally, no-one really expected it to end in the kind of acrimony we saw earlier in Brussels.

In the event, what we have witnessed is yet another demonstration of what happens when the euro collides with democratic politics.

It all comes back down to the key issue Syriza campaigned on in the Greek elections last month: ending the current €240bn bailout programme and replacing it with something more humane.

Most of Greece's euro counterparts have insisted that to do so is simply impossible - that if Greece wants to borrow more cash and continue to enjoy financial support from the European Central Bank, it must sign up to an extension of the existing programme, due to expire at the end of the month.

However, doing so represents what Yanis Varoufakis, the Greek finance minister, has described as a red line.

Instead, he would rather agree to a separate "bridging loan" without the full conditions attached to the existing bailout (but with, he insists, "some conditionality, to build trust").

He claims that he was privately given such a promise by the European Commissioner in charge of the economy, Pierre Moscovici, last week.

But, in Mr Varoufakis' rendering, at the Eurogroup meeting on Monday afternoon, Mr Moscovici's draft proposal was replaced by Eurogroup head, Jeroen Djisselbloem, with something else entirely - an alternative communique that pledged that Greece should continue with the existing programme.

A copy of this document, with Mr Varoufakis' disapproving penmarks scrawled all over it, was leaked to the press.

In chaotic scenes, the meeting broke down within minutes.

Given it was billed as the make-or-break moment for the euro, the collapse of talks looks, on the surface of it, to be deeply worrying.

However, the reality is that Monday's deadline was always a self-imposed one.

The talks will continue in the coming days, and there is likely to be another Eurogroup meeting to confirm things as soon as something can be hatched behind the scenes.

But with every setback, worries grow that Greece could be edging slowly towards a possible default - or indeed a chaotic exit from the single currency.

There are still many more levers to be pulled by both sides between now and then. But the fact that a key meeting could break down so easily is a reminder that things will hardly be plain sailing in the coming weeks.