Isolated Greece rejects bailout extension

FM Yanis Varoufakis would ask for a 'bridge agreement' to keep state finances running until Athens can present a new debt and reform programme

Greece's new leftist-led government, isolated in the euro zone and under pressure from the European Central Bank, vowed on Friday not to accept any deal in crunch talks next week that keeps its current international bailout programme in place.

Instead, a government official said Finance Minister Yanis Varoufakis would ask for a "bridge agreement" to keep state finances running until Athens can present a new debt and reform programme.

"We will not accept any deal which is not related to a new programme," said the official, who asked not to be named.

Varoufakis returned empty-handed from a tour of European capitals in which even left-leaning governments in France and Italy insisted Greece must stick to commitments made to the European Union and International Monetary Fund and rejected any debt write-off.

Euro zone finance ministers will discuss how to proceed with financial support for Athens at a special session next Wednesday ahead of the first summit of EU leaders with new Greek Prime Minister Alexis Tsipras the following day.

Participants said no progress was made at a preparatory meeting of senior finance ministry officials in Brussels on Thursday because Greece and its euro zone partners were so far apart.

"It was Greece against all others, basically one versus 18," one official said.

Athens' partners broadly lined up in support of a hardline German document rejecting any roll-back of reforms or commitments made by previous Greek governments.

Tsipras and his ministers promised in their first days in office to raise the minimum wage, re-hire some sacked government employees and stop some privatizations.

This clashed with conditions set by the International Monetary Fund and euro zone countries, which have lent Athens a total of 240 billion euros ($270 billion).