UPDATE: *EU FINANCE MINISTERS' TALKS WITH GREECE OVER FOR TODAY, GREECE SAYS WON'T TAKE ORDERS ON BAILOUT

EU President Jeroen Dijsselbloem to explain just how far apart they are now...

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Dijsselbloem headlines:

*DIJSSELBLOEM SAYS MINISTERS WERE DISAPPOINTED BY WEEKEND TALKS

*DIJSSELBLOEM SAYS BEST WOULD BE EXTENSION FOR GREEK PROGRAM

*DIJSSELBLOEM SAYS EXTENSION WOULD ALLOW FLEXIBILITY FOR GREECE

*DIJSSELBLOEM SAYS EXTENSION WOULD INVOLVE COMMITMENTS

*DIJSSELBLOEM SAYS WOULD NEED AGREEMENT TO ROLL BACK MEASURES

*DIJSSELBLOEM SAYS WE STAND READY TO CONTINUE DISCUSSIONS

*DIJSSELBLOEM SAYS IT'S UP TO GREECE TO DECIDE ON EXTENSION

*DIJSSELBLOEM SAYS COULD BE EXTRA EUROGROUP ON FRIDAY

*DIJSSELBLOEM SAYS WE HAVE THIS WEEK, BUT THAT'S ABOUT IT

So the 10-day ultimatum was just extended by 40%? Clearly The EU is worried.

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Well that didn't last long. It seems - just as earlier in the week - the ability for either side in this Euro-system death match game of chicken to find any common ground to even start negotiations remains lost:

GREEK GOVT OFFICIAL SAYS THAT "IN THESE CIRCUMSTANCES, THERE CANNOT BE A DEAL TODAY"

EUROGROUP DISCUSSED "UNREASONABLE", "UNACCEPTABLE" DRAFT TEXT INSISTING ON EXTENDING BAILOUT

Full statement (and rejected phrase) (h/t @EdConwaySky)

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The reaction...

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EURUSD is tumbling and S&P Futures are falling fast.

and Greek Bank Bonds had been hinting at problems all day...

Further comments:

*GREEK GOVT OFFICIAL SAYS NO AGREEMENT POSSIBLE AT EUROGROUP

*GREEK GOVT OFFICIAL SAYS EU PROPOSALS `ABSURD,' `UNACCEPTABLE'

Greek govt official says in e-mailed note that Eurogroup Chairman Jeroen Dijsselbloem’s proposals for the country to observe its existing bailout commitments are “absurd,” “unacceptable.”

#Greek govt says text presented at #eurogroup was a reversal of agreement @atsipras & @J_Dijsselbloem made last Thursday. — Peter Spiegel (@SpiegelPeter) February 16, 2015

According 2 draft I got, #Eurogroup called for "best use of existing built-in flexibility in the current programme." Hence #Greece objection — Peter Spiegel (@SpiegelPeter) February 16, 2015

As Reuters reports,

A Greek government official said that a draft text presented to euro zone finance ministers meeting in Brussels on Monday spoke of Greece extending its current bailout package and as such was "unreasonable" and would not be accepted. Without specifying who put forward the text to the meeting chaired by Dutch Finance Minister Jeroen Dijsselbloem, the official said: "Some people's insistence on the Greek government implementing the bailout is unreasonable and cannot be accepted. "Those who keep returning to this issue are wasting their time. Under such circumstances, there cannot be a deal today."

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So this is the next key event:

Over in Frankfurt, the ECB Governing Council will meet on Wednesday. Close attention will be paid to any decision the governors take on Greece and its lenders' access to central-bank liquidity. Already, Greek banks, which have been hurt by an outflow of deposits due to the country's political and financial uncertainty over the last two months, can no longer use their government's bonds to get liquidity from the ECB, depending instead on more expensive emergency funding from their own central bank.

But of course that still leaves the uncomfortable post-Eurogroup press conference and statement which we suspect will be even more uncomfortable than last week's for Dijsselbloem.

"GREECE WILL NOT CROSS RED LINES IT HAS DRAWN" all board! pic.twitter.com/zWqhbqLAoT — Mr. K. H&S (@ECantoni) February 16, 2015

Zee Germans are not happy and, as KeepTalkingGreece reports, are now suggesting Tsipras replace varoufakis at the negotiating table...

An SPD politician from Merkels’ social-democrat coalition suggested s that Prime Minister Alexis Tsipras should replaces Finance Minister Yanis Varoufakis as he apparently creates lots of confusion, German politicians cannot understand. SPD executive board member, Joachim Poß, wrote in an e-mail for his party colleagues: “Greek Finance Minister Varoufakis has best demonstrated with his performance until now, that he is not up to the demands of such an office. In the interest of the Greek people and in view of the difficult situation, Prime Minister Tsipras should consider to replace Mr Varoufakis with a political experienced, realistic-efficient person.” (Handelsblatt) I suppose Varoufakis is an overwhelming challenge for some petty-minded politicians. He is much more than they can take. Or they just want a Yes-Man.

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