Talks broke down as Greece’s European creditors issued an ultimatum: Agree by Friday to continue with a bailout program or risk the funding that the country needs to avoid a default.  Greek Finance Minster Yanis Varoufakis called that “absurd” and “unacceptable”.

The line in the sand appeared to some to be a strategy to get the new Athens government to back off of its anti-austerity campaign pledges.  But Prime Minister Alexis Tsipras and Varoufakis are already dismantling the EU-imposed austerity programs, reinstating the pre-crisis minimum wage, stopping the privatization of major public assets, and calling laid off government employees back to work.  Varoufakis isn’t biting.

“In the history of the European Union, nothing good has ever come out of ultimatums,” said Varoufakis.  “I have no doubt that in the next few days any notion of an ultimatum is going to be withdrawn.”

Time is running out to find a solution:  Greece’s current bailout will expire at the end of the month, and any new agreement would need to be approved by the national governments of the European Union.  Without a deal, Greece is likely to run out of money.  And it raises the risk that Greece could default on its loan repayments and become the first member of the euro currency union to leave.