Greece sent a new proposal for budget cuts and policy overhauls as part of a request for a new bailout, but it falls short of the demands of the country’s creditors, European officials said Wednesday.
In the new letter sent to the country’s lenders late Tuesday night, Greek Prime Minister Alexis Tsipras proposes changes on several key parts of measures at the center of a five-month standoff between the two sides over funding Greece desperately needs.
Those include a later start of pension overhauls and exceptions on sales-taxes for certain Greek islands, measures that lenders already rejected when talks broke down last week.
“If Friday’s proposals (from creditors) are the baseline, these measures would significantly increase (the) fiscal gap,” said one official. “And lots of clarifications would be needed on other aspects,” the official added.
A second official said that the proposals from Tsipras are a weakening of the measures that have been discussed and would not be well received by the three institutions that oversee eurozone bailouts — the European Commission, the European Central Bank and the International Monetary Fund. A third official echoed that assessment.
A senior Greek government official said that the Greek government was not planning to send additional proposals with more concessions on Wednesday.