On the data front, U.K. unemployment data showed a further fall, reaching its lowest since the three months to August 2008. Wages also saw an improvement and the Bank of England released minutes of its last monetary policy meeting showing that members are unanimous in thinking that the central bank shouldn't raise interest rates. Sterling rose to a seven-year high on the news but the FTSE 100 was the major under performer for the day, ending flat at 6,898.
Greece will submit a formal request on Thursday to try to extend a rescue loan agreement, as concerns rise over the liquidity available to the country's banks.
Talks between Greece and its euro zone creditors regarding its current bailout program broke down Monday but the European Central Bank's Governing Council is set to meet Wednesday to discuss the issue further. Stocks in Athens were up 1.5 percent on Wednesday.
Meanwhile, the minutes of the latest U.S. Federal Reserve Open Market Committee (FOMC) meeting will be published after the European close.
U.S. stocks opened slightly lower on Wednesday as investors awaited the release of the Fed minutes amid continued uncertainty in the Greece-euro zone negotiations.