Latest Greek proposals 'balanced', 'positive': French PM

French Prime Minister Manuel Valls said Wednesday fresh proposals made by Athens in exchange for a new European bailout were a step in the right direction.

French Prime Minister Manuel Valls said Wednesday fresh proposals made by Athens in exchange for a new European bailout were a step in the right direction.

"This request... is balanced, positive. It shows a real willingness to move forward and reform," Valls said in parliament, praising an "important step which will allow for negotiations."

Valls said that keeping Greece in the eurozone was a "geopolitical issue of the highest importance".

"An exit would definitely cause a drop in revenues, exploding import costs, including for basic goods, social and political consequences that none of us are able to predict. Is that what we want for the Greek people? 

"Is that the image of Europe we want to give to the world?"

However Valls also urged the Greek government to step up and "help itself".

He said France was not being "indulgent" towards the Greek government but was merely working to keep the country in the eurozone "because it is in our interests."

Greece rejected austerity demanded by creditors in return for renewed funding in a weekend referendum, and Athens has since formally asked for a new bailout to avoid crashing out of the euro.

Greece must now submit a reform plan to eurozone leaders by Thursday night, and the new proposals are said to focus on tax and pension reforms in particular.

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