Greece working for compromise deal with Eurogroup: gov't spokesman

Greek officials were working hard to find common ground with technocrats representing eurozone creditors on Friday in order to reach by the February 16 Eurogroup meeting a compromise agreement on bilateral cooperation after the bailout, government spokesman Gavriil Sakelallaridis told local media.

The Greek official dismissed media reports over a widening rift between the Greek government and European lenders, underlining that everybody was working for the best solution.

Following an extraordinary Eurogroup meeting on the Greek crisis on Wednesday which ended inconclusive and an EU summit in Brussels on Thursday, Greece and its European partners agreed to step up efforts to bridge diverging views on the way forward by the next Eurogroup meeting.

The newly elected Left-led government insisted on its rejection to continue the austerity drive launched in 2010 in exchange of multi-billion euro aid by international lenders to avert default.

It suggested a reversal of such policies implemented over the past five years to deal with a humanitarian crisis and focus on structural reforms instead so as to support growth.

According to Greek government sources, following the meetings in Brussels, the Greek side has accepted to adopt about 70 percent of the structural reforms contained in the existing bailout agreements. Greek officials were drawing on Friday a draft with alternative policies for the part Athens considered as "toxic" for Greek economy and society.

For example, according to the same sources, the new government would embrace reforms regarding the battle against tax evasion and efforts to boost competitiveness by reducing red tape for investments.

On the other hand, Greek officials were dismissing as "counterproductive" proposals made by auditors from Troika -- the European Commission, the European Central Bank and the International Monetary Fund -- for the pension system reform and the legal framework for the operation of trade unions and mass dismissals of employees.

Prime Minister Alexis Tsipras and his aides remained adamant in their denial to request an extension of the bailout which expires on February 28 to secure the further vital financing of the ailing economy, Sakellaridis stressed on Friday.

They suggested a bridge agreement which, according to Greek Finance Ministry sources, would pave the ground until autumn for a final deal on the resolution of the Greek crisis, requesting a further debt relief.

On the other hand, they seemed to have dropped the pre-election demand for a new "haircut" of Greece's sovereign debt, seeking other ways to make it sustainable.

In any case, the Greek government spokesman repeated on Friday, the government which was elected after the January 25 national elections "would never sign an agreement which offends Greece's sovereignty." Enditem