Germany Says Nein to Greek Loan Proposal

Germany has rejected a Greek request for a six-month extension to its eurozone loan programme, after earlier signs that a compromise was possible.

Greece had sought a six-month assistance package, rather than a renewal of the existing deal that comes with tough austerity conditions.

However, a German finance ministry spokesman said it was “not a substantial proposal for a solution”.

The European Commission had earlier called the Greek request “positive”.

“[European Commission] President Juncker sees this letter as a positive sign, which, in his assessment, could pave the way for a reasonable compromise in the interest of the financial stability in the euro area as a whole,” Commission spokesman Margaritis Schinas said.

“The detailed assessment of the [Greek loan] letter and the response is now up to the Eurogroup,” he added, referring to a Friday meeting of European finance ministers in Brussels, which will discuss the Greek proposal.

via BBC

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