Greek leaders divorced from reality, says Berlin after Tsipras asks for debts to be written off

Germany and Greece drew battle lines last night in a spiralling row over the repayment of massive bailout loans.

Berlin said the demands of Alexis Tsipras's new far-Left Greek government for some of its debts to be written off were 'divorced from reality'.

But Greek finance minister Yanis Varoufakis replied that the government would no longer engage with officials representing the country's despised 'troika' of lenders – the European Commission, International Monetary Fund and European Central Bank.

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