Greece’s counterproposal on debt fails to get creditors’ blessing

Greek negotiators have submitted a counter-proposal to international creditors at talks in Brussels, a government official said on Sunday, adding that Athens will never accept demands for cuts to pensions and wages, or a rise in value-added tax on electricity.

Athens is trying to agree a cash-for-reforms deal with the European Union and IMF before the end of the month, when it faces a debt default unless it can secure fresh funds.

But talks between negotiators failed to secure a deal over the weekend failed to come to forge a deal, with the European Commission noting that although there had been “some progress,” that talks “did not succeed as there remains a significant gap” between the plan of the Greek authorities and that of its creditors.

It added that Athens’ proposals were incomplete.

A Greek official said it’s plan had supplementary clauses that fully cover the fiscal gap and the primary surpluses, adding that these were "proposals which open the way for the final agreement that will cover all three — fiscal, funding and growth — pillars."

"The Greek delegation remains ready to complete the negotiations and reach a mutually beneficial solution," said the official.

Germany's Economy Minister Sigmar Gabriel, who is also vice-chancellor, told German public broadcaster ARD on Sunday that Europe's patience with Greece is running out.

Gabriel said "a couple of game theorists in the Greek government believe that in the end the fear in Europe that Greece might leave (the euro) is so great that we'll agree to anything. That's not the case."

He repeated the German government's position that Greece needs to commit to previously agreed reforms if it wants a deal.

Wire services