Germans want EU budget commisioner for Greece

A leaked plan from the German government proposes a eurozone "budget commissioner" to take control of Greece's tax and spending, reports say.
The Financial Times, which has a copy of the plan, calls it an "extraordinary extension" of EU control.
Greek Education Minister Anna Diamantopoulou called the German plan "the product of a sick imagination".
The European Commission said the budget "must remain the full responsibility of the Greek government".
A German official told the Associated Press eurozone finance ministers were discussing the plan.
Greece has failed to meet targets set by its international lenders.
It is currently negotiating a second bailout, worth 130bn euros (£109bn; $172bn), with its creditors.
If no agreement is reached in the next few days, Greece will not receive the next tranche of funds from its first bailout.
It needs the money to pay off a significant number of bondholders whose bonds mature in March. Without the bailout funds, Greece could be forced into an uncontrolled default from the euro.
'Disappointing compliance'
Under the German proposal, a budget commissioner would have veto powers over Greek budgetary measures if they were not in line with targets set by international lenders.
"Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time," the Financial Times quotes the German plan as saying.
Under the proposals, European institutions already operating in Greece should be given "certain decision-making powers" over fiscal policy, a German official told the Reuters news agency. He was speaking on condition of anonymity.
Neither the Greek nor the German government has commented publicly on the leaked plan.
Germany, France and other euro zone states have so far described the 130bn-euro figure agreed in October as a red line that must not be crossed. However, the German magazine Der Spiegel carries a report saying Greece's creditors fear an extra 15bn euros will be needed.
The European Commission (EC), the EU's executive branch, says it wants to "reinforce" monitoring of Greek public finances, boosting "capacity" in Athens, but that the Hellenic state must remain sovereign, the AFP news agency reports.
"The Commission is committed to further reinforcing its monitoring capacity and is currently developing its capacity on the ground," AFP quotes spokesman Amadeu Altafaj as saying.
Despite two weeks of intensive talks, Greece has yet to reach agreement on debt relief with private investors.
They are discussing a debt swap, under which private creditors take a 50% cut in the nominal value of their Greek bond boldings, in return for cash and new bonds. The debt swap would relieve Greece of about 100bn euros of its total debt of 350bn euros.
However, talks have foundered over the rate of interest Greece must pay on the new bonds, which are expected to mature after 30 years.
In return for the first bailout, Greece agreed to make deep cuts to public spending, including cuts in pensions and wages for public-sector workers.
The austerity measures have angered many Greeks. In Athens on Friday, protesters tried to blockade inspectors from the "troika" of lenders - the EC, the International Monetary Fund and the European Central Bank - in their hotel.
Elections are in April in Greece...

Greeks reject 'impossible' German plan for budget veto
29 January 12 17:30 GMT

Greece has rejected outright German proposals for the EU to hold power over its budget.
Culture Minister Pavlos Yeroulanos told the BBC it would be "impossible" for Greece to cede control of its tax and spending powers.
There are concerns the measures Greece has taken to cut its budget deficit have not gone far enough.
Meanwhile, Greece and its private creditors are close to a deal to cut dramatically the country's debt levels.
Charles Dallara and Jean Lemierre, representing the creditors, said on Saturday they were "close to the finalisation" of a deal that would see banks and investors write off about 50% of money they are owed.
They said a deal, which is necessary for Greece to receive much-needed further bailout funds, should be agreed this week.
On Sunday, Greek Prime Minister Lucas Papademos said he and his coalition partners were in "complete agreement" over the positions to adopt in the talks, both with private creditors and with the EU and International Monetary Fund officials over any subsequent bailout.
He said delays in cutting Greece's budget deficit had led to demands for greater austerity measures.
'Red line'
Greek officials reacted angrily to the leaked German proposal for an EU budget commissioner with veto powers over Greek taxes and spending.
"It's going to be impossible for the Greek government to accept such a deal - I don't think it would be supported by any of the heads of the parties that are involved in the coalition," said Mr Yeroulanos.
"We have been giving up quite a bit, but I think sovereignty is a red line that no-one would dare cross.
"I would rather resign as a minister than allow anybody to tell us the way we should be spending our money."
Earlier, Greek government spokesman Pantelis Kapsis told the BBC that Greece's budget was "the responsibility of the Greek government and there is no need for such measures".
He said a similar idea had been raised before and should be avoided.
"We have gone a long way in reducing our deficit and are on the right track," he added.
Under the German proposal, a budget commissioner would have veto powers over Greek budgetary measures if they were not in line with targets set by international lenders.
Greece would also legally commit itself to servicing its debt, before spending any money in any other way.
Debt deal
Mr Kapsis also said the discussions between Greece and its private creditors had gone well and the two parties were "close to an agreement".
Athens is negotiating with the Institute of International Finance (IIF), which represents Greece's private creditors. The main sticking point in the discussions is the interest rate that Greece will pay on newly-issued bonds that will replace its existing debts.
The IIF said last week it wants no less than 4%, while Athens, backed by eurozone finance ministers, wants the rate to be well below 3.5%.
Agreeing a deal is a precondition of receiving further bailout funds from the European Commission, the European Central Bank and the International Monetary Fund (IMF).
Greece needs these funds to pay back more than 14.5bn ($19.2bn; £12.2bn) euros of debt which needs to repayed in March.
If a deal is not agreed, Greece could decide itself what, if anything, to repay its creditors.
This so-called disorderly default would undermine confidence in the eurozone economy and its banking system.
Some analysts believe it could result in Greece being forced to give up the euro.
European leaders are attending a summit on Monday as part of their continuing attempts to resolve the crisis.
They are looking to forge closer economic ties between member states by agreeing the details of a treaty imposing strict rules on government spending.
They are also trying to agree the details of a permanent eurozone bailout fund, the European Financial Stability Mechanism, to deal with sovereign debt crises in the future.