Greece Bailout Offer Falls Short of Demands

Some of the stories of people going hungry are heart-wrenching, no matter what you think of Greece's clusterf-k socialist economy.

At the Wall Street Journal, "Fresh Greek Bailout Proposal Falls Short of Creditors’ Demands":

Eurozone officials dismissed a new Greek proposal for budget cuts and policy overhauls as insufficient and said that the currency bloc’s finance chiefs wouldn’t hold any more talks on a rescue for Athens until the country holds its referendum on creditors’ conditions for aid on Sunday.

Officials in Brussels said the proposal, received Tuesday night by the representatives of Greece’s official lenders, appeared to fall short of creditors’ demands. Greece defaulted on a €1.55 billion ($1.72 billion) repayment to the International Monetary Fund on Tuesday.

German Chancellor Angela Merkel also reacted coolly to Greece’s new offer, emphasizing that Berlin would maintain its tough stance on bailout terms for Greece and was prepared for a battle. Ms. Merkel and other senior officials have said that Germany would discuss a new bailout request only after Greece’s referendum on the creditors’ conditions for aid had taken place, or if Greece called it off.

“A compromise at any cost would only be a result to get a result, only because one isn’t able to live with a conflict because one is afraid to fight the battle,” Ms. Merkel said.

The eurozone’s finance chiefs also agreed in a Wednesday teleconference to hold off on further negotiations until after the snap Greek referendum, which is set to take place Sunday.

“Given the political situation, the rejection of the previous proposals, the referendum which will take place on Sunday and the ‘no’ advice of the Greek government, we see no ground for further talks at this point,” said Dutch Finance Minister Jeroen Dijsselbloem, who presides over meetings of the currency bloc’s finance ministers.

Greece’s finance minister Yanis Varoufakis, though, said that the other finance chiefs had said that “Greece’s proposal is in the right direction, but asked for more details on its fiscal effect.”

In a televised address, Greek Prime Minister Alexis Tsipras remained defiant, vowing to push ahead with the referendum and calling Greeks who vote “yes” in Sunday’s vote accomplices to those looking to continue the painful policies of austerity in the crisis-stricken country. The premier has argued that a “no” vote would give Greece leverage in talks with its creditors, while eurozone officials have countered that it would be tantamount to a vote to leave the euro.

“A ‘no’ vote is a decisive step for a better agreement, which we aim to sign straight after the referendum,” Mr. Tsipras said. “ ‘No’ does not mean a rupture with Europe.”

Earlier in the day, Germany’s finance chief, Wolfgang Schäuble said that this week’s turmoil—including the closure of Greek banks, the expiration of the bailout program, and the decision to call a referendum—have changed the circumstances too much for bailout talks to simply be resumed from where they were when negotiations broke down on Friday.

Mr. Schäuble said that Greece’s left-wing government had to provide more clarity on its demands before negotiations about further financial aid could resume. The letter sent Tuesday hadn’t done that, he said.

“This is no basis for serious” negotiations, said Mr. Schäuble during a news conference on the government’s 2016 budget. “First of all, Greece has to declare what it wants.”

Markets were nevertheless cheered by the latest offer as a sign that a deal was still possible. The Stoxx Europe 600 opened higher and extended gains sharply. Bonds yields fell in Italy and Spain, highly indebted countries that in past years were seen as vulnerable to spillover from Greece...

Still more.

And stay with the video at the top. Holly Williams reports and it's emotional.