Europe stock rally halted as Germany rejects Greek proposal
Reuters - Feb 19, 2015
Europe's stock rally lost steam on Thursday, with a benchmark index retreating from a seven-year high, after Germany rejected a new proposal from Athens for an extension of its bailout programme.
The German finance ministry described the Greek proposal as "not a substantial solution" because it failed to fulfill the conditions of an EU/IMF bailout programme. Greek Prime Minister Alexis Tsipras had promised to ditch those requirements when he won an election last month.
With the programme due to expire in a little more than a week, Greece urgently needs to secure a financial lifeline to keep the country afloat beyond late March.
European stocks had rallied earlier in the session, with the FTSEurofirst 300 index climbing to a level not seen since late 2007, after Greece made its proposal for a six-month extension of the bailout.
