German Econ Min says Greek proposal can only be a first step

Germany?s Economy Minister Sigmar Gabriel said on Thursday Greece?s proposal to extend a loan agreement was insufficient, adding the key question is what reforms Athens? new government was willing to undertake.

"The letter can only be the start of talks," Gabriel, head of the Social Democrats who share power in conservative Chancellor Angela Merkel?s coalition, said in a statement at the economy ministry.

Earlier, German Finance Ministry spokesman Martin Jaeger said the proposal was "not a proposal that leads to a substantial solution." [Reuters]