EU says progress in talks with Greece is slow

BRUSSELS (Reuters) - Progress in talks between Greece and its creditors on more funding is slow, the European Commission said on Tuesday, denying the existence of a new proposal reported by the Greek press that would give Athens cash on more favourable terms. Greek newspaper To Vima said on Monday the Commission had prepared a possible compromise, proposing that creditors should accept a lower primary surplus target from Greece in return for tax reform and a hike in sales taxes. The report lifted the Athens stock market, but the Commission in Brussels and the Greek government both denied any knowledge of such a proposal. "More time and effort is needed to bridge the gaps on the remaining open issues. We consider that progress is being made albeit at a slow pace," Commission spokesman Margaritis Schinas told a daily news briefing. "We cannot confirm any paper of the kind which has been mentioned in the Greek press. We cannot confirm the existence of any such paper and we really don't know where that story has come from," he said. (Reporting By Jan Strupczewski; editing by Philip Blenkinsop)