Finance Minister Yanis Varoufakis walked away from Friday’s Eurogroup with the promise of a four-month extension of Greece’s loan agreement, which has some concessions for the coalition but overall is a deal that he and Prime Minister Alexis Tsipras might find difficult to sell domestically.
In a substantial climbdown, the Greek government on Thursday submitted a request to the Eurogroup for a six-month extension of its programme, although it remained vague on what measures and fiscal targets it would accept.
Greece is expected to ask for a six-month extension to its loan agreement with its creditors at some point on Wednesday but it is not clear if this will be accepted as Athens is specifically rejecting the option of lengthening the bailout because it rejects the terms that come with it.
In a somewhat controversial choice, Prime Minister Alexis Tsipras chose former Interior Minister Prokopis Pavlopoulos as his party's presidential candidate yesterday.
For the second Eurogroup running, Greece and the eurozone failed to reach an agreement on how to move forward. However, an apparent acrimonious falling out may be less damaging than it first appears and, in essence, the two sides do not seem to be far apart from a deal.
Two seemingly unconnected events became linked on Sunday when Prime Minister Alexis Tsipras decided to put off his decision to nominate a successor to President Karolos Papoulias until Tuesday, several hours after a Eurogroup meeting in Brussels.
In a sign that Greece and its lenders may be moving closer to an agreement, Greek officials and representatives of the troika are due to begin technical work on Friday to prepare for Monday’s Eurogroup.
As the dust settles from Wednesday’s inconclusive Eurogroup, it is difficult to assess with certainty whether events in Brussels leave Greece and the eurozone closer or further from an agreement.
As expected, Wednesday's Eurogroup failed to result in an agreement for Greece and the eurozone but the gap between the two sides was emphasised by the absence of a joint statement at the end of the meeting.
The Greek government goes into Wednesday night’s crucial, but not definitive, Eurogroup meeting buoyed by a number of domestic factors.