Showdown likely as Germany rejects Greek loan extension

The stage is set for a bad tempered meeting between Greece and its eurozone colleagues over extending its present programme, with Germany demanding major compromises from Athens.

The request from Greece for a six-month extension, carefully couched in language the new left-wing government could accept, was swiftly met with a ‘no’ from Berlin, where representatives referred to it as a ‘Trojan horse’.

Discussions between technical experts — mainly on the phone from their capitals — went on all afternoon before finance ministers meet today.