Juncker Proposes Deal To End Greek Debt Deadlock: Report

MarketWatch Pulse

European Commission President Jean-Claude Juncker has submitted a proposal to break the months-long stalemate between Greece and its international lenders, Greek daily To Vima reported on Monday. Juncker's plan includes cutting Greece's primary budget surplus target to just 0.75% from 3% and also calls for pushing back VAT changes until after the summer. However, the deal would still contain an unpopular property tax. The proposal is aimed at cutting the "Gordian knot" of conflicting frameworks holding up a debt deal, as well as at removing the immediate threat of Greece running out of cash and buying more time to negotiate a new reform program, To Vima said. Greek stocks erased earlier losses after the report, with the Athex Composite index jumping 1.6% to 825.10.

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