Europe stock rally halted, Greek proposal rejected

Paris - Europe's stock rally lost steam on Thursday, with a benchmark index retreating from a seven-year high, after Germany rejected a new proposal from Athens for an extension of its bailout programme.

The German finance ministry described the Greek proposal as "not a substantial solution" because it failed to fulfil the conditions of an EU/IMF bailout programme. Greek Prime Minister Alexis Tsipras had promised to ditch those requirements when he won an election last month.

With the programme due to expire in a little more than a week, Greece urgently needs to secure a financial lifeline to keep the country afloat beyond late March.