Quick Greece deal doesn’t look likely

Germany takes tough stance on potential bailout.

ATHENS, GREECE — Germany took a tough line against Greece over its bailout on Tuesday, tempering market hopes that a deal between Athens and its European creditors was in the works.

Finance Minister Wolfgang Schaeuble warned that negotiations with Greece, which wants to scrap its bailout program in favor of a new one with easier terms, would be dead if Athens pulls out of the current one.

He also said there was no chance of reaching a final deal at an emergency eurozone finance ministers’ meeting today.

The blunt comments tempered hopes in financial markets, which had rallied on Tuesday on hopes of a negotiation breakthrough between lenders and the country’s new left-wing government.

“The public statements (by Greece) are more confusing than helpful,” Schaeuble said, speaking in Istanbul, Turkey, after a meeting of Group of 20 finance ministers.

Greece’s new left-wing Prime Minister Alexis Tsipras won elections last month on a pledge to restructure the massive bailout debts and renegotiate the terms of the deal.

The current bailout program ends after Feb. 28, so both sides are under pressure to reach a deal.

Greece needs money to avoid bankruptcy, which could ultimately push it out of the eurozone and force it to adopt a new currency — a development that would cause massive financial damage for the country, at least in the short term. For the eurozone, an exit from the euro by Greece would bring huge market uncertainty.

Expectations that Greece could be granted extra time to hold new negotiations buoyed markets. Shares on the Athens Stock Exchange shot up nearly 8 percent, while the European Stoxx 600 index was up 0.5 percent.

“There are several reasons to be optimistic, starting with Europe’s track record over the past few years of finding a solution to the rolling eurozone crisis, often in the final moments,” said Garrick Hileman, an economic historian at the London School of Economics.

But EU officials also suggested a final deal would take time and would likely not be reached at this week’s meetings.

EU Commission spokeswoman Mina Andreeva said today’s meetings will be a first opportunity for the ministers to hear from the new government.