Brussels - Europe and Greece battle Friday to reach a last-minute bailout compromise with powerhouse Germany adamant that Athens accept further austerity in return for more aid.
Finance ministers from the 19-member eurozone meet in Brussels later Friday to consider a take-it or leave-it proposal by Athens to extend its European loan programme that expires at the end of the month.
Powerful Germany firmly dismissed the request by Athens for a six-month extension to its EU loan programme, pouring doubt on whether the different sides can find a quick solution to an increasingly embittered debt row and avoid a catastrophic exit by Greece from the euro.
A spokesman for German Finance Minister Wolfgang Schaeuble slammed the request as "not a substantial proposal for a solution".
But taking a more conciliatory stance, Germany's Vice Chancellor Sigmar Gabriel, a centre-left Social Democrat, said the request, although insufficient, should be seen as "a first step".
The United States pressed the EU and Greece to reach agreement, stressing it would require "vigorous engagement from both sides".
"The message to Germany is broadly parallel to the one to Greece and others in Europe... it's important for the euro and the global economy to reach agreement," said a senior US Treasury official, speaking to reporters Thursday on condition of anonymity.
"The Europeans have the capacity to handle these challenges," the official said on the eve of the finance ministers meeting in Brussels.
AFP
