Germany floats Greek euro 'time-out' without more reforms

By Tom Körkemeier and Andreas Rinke BRUSSELS (Reuters) - The German government has argued that Greece could take a five-year "time-out" from the euro zone and have some of its debts written off if Athens fails to improve proposals it has made for a bailout. In a paper reviewing an offer of reforms from the Greek government in return for a three-year loan, Finance Ministry officials said the plan lacked "paramount important reform areas" and wrote: "We need a better sustainable solution." The paper, seen by Reuters and first reported by Germany's Frankfurter Allgemeine Sonntagszeitung, offered "two avenues": either tighter conditions binding the Greek government to its new promises or a temporary exit from the euro. Sources in the ruling left-right coalition in Berlin said the paper was drawn up after discussions among conservative Chancellor Angela Merkel, her centre-left deputy Sigmar Gabriel and Finance Minister Wolfgang Schaeuble.

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