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03 November 2011

FT: Greek PM scraps referendum plan


Greece's prime minister has abandoned his plan to hold a referendum on eurozone membership and instead set his sights on winning a parliamentary confidence vote.

George Papandreou told his socialist colleagues that there was no need for a referendum after the conservative opposition promised to support the terms of a €130 billion bailout from the European Union, European Central Bank and International Monetary Fund. “Failure to back the package would mean the beginning of our departure from the euro”, Mr Papandreou said. “But if we have consensus, then we don’t need a referendum.”

The prime minister’s abrupt reversal of a position that his cabinet had unanimously endorsed in the early hours of Wednesday morning overshadowed the first day of a summit in Cannes of leaders of the G20 group of large industrialised and emerging economies.

“I’m pleased to see that there are sufficiently responsible politicians in Greece who have understood that message and who have been able to see the national priorities”, Mr Sarkozy said, praising the opposition’s decision to support the October 27 rescue deal for Greece as courageous and responsible. “It is an extremely important act which I salute.”

Full article (FT subscription required)



© Financial Times


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