Greek PM backs off idea of Europe bailout vote
PRIME Minister George Papandreou said yesterday that he would scrap a referendum on Greece's bailout lifeline if the conservative opposition agreed to back the package in parliament.
Events in Athens gathered speed a day after Papandreou held a bruising meeting in France with German and French leaders, who told him Athens would not receive a cent more in aid until it voted to meet its commitments under the bailout deal.
"I will be glad even if we don't go to a referendum, which was never a purpose in itself. I'm glad that all this discussion has at least brought a lot of people back to their senses," he said in a speech to his cabinet. "If the opposition comes to the table to back the bailout, a referendum is not needed."
The conservative opposition and some lawmakers within Papandreou's socialist party PASOK demanded some kind of unity government which would push through parliament the 130 billion-euro rescue,,cheap adidas shoes, Greece's last financial lifeline.
Under intense pressure at home and from the leaders of Germany and France, Papandreou softened his insistence that the Greek people should decide in a referendum whether to accept the bailout, which demands yet more austerity.
Conservative leader Antonis Samaras led calls for a new government.
"I'm asking for the formation of a temporary, transitional government with an exclusive mandate to immediately hold elections," Samaras said in a statement. "And the ratification of the bailout deal from the current parliament."
Papandreou responded by welcoming the decision by Samaras to drop his previous opposition to the bailout package, which eurozone leaders nailed down only last week as they tried to prevent the bloc's debt crisis from running out of control. Papandreou reiterated that Greece's eurozone membership was not in question and that heading to elections immediately would entail a big risk of the country going bankrupt.
Greeks have fiercely opposed the spending cuts, tax hikes and job losses that have been the price of financial aid from the IMF and EU to tackle its huge debt and budget deficit.Moncler women's jackets This has led to a wave of strikes and outbreaks of violence on the streets of Athens.
A spokesman for the New Democracy Party said a transitional government should not be composed of party politicians. He declined to elaborate. However,discounted designer handbags the idea appeared to be gaining ground within Papandreou's own party.
A small group of senior PASOK lawmakers are preparing a proposal for a coalition government headed by former European Central Bank Vice President Lucas Papademos, a Greek.
Officials said Papandreou, who also called a vote of confidence in his government today, was not resigning and would await the result of the talks with New Democracy.,Moncler men jackets, "There is no resignation by the prime minister," one official said.
Finance Minister Evangelos Venizelos broke ranks with Papandreou, coming out against holding the referendum after the meeting with the German and French leaders.
Chaos over Greece's role in the eurozone swept financial markets with early losses in stocks and the euro turning to gains on hopes Athens might ditch its referendum plans. The Greek stock exchange rose 5 percent on speculation the referendum would be abandoned, with the index of bank shares soaring 15 percent. World stocks gained 0.9 percent after earlier being sharply lower.
PRIME Minister George Papandreou said yesterday that he would scrap a referendum on Greece's bailout lifeline if the conservative opposition agreed to back the package in parliament.
Events in Athens gathered speed a day after Papandreou held a bruising meeting in France with German and French leaders, who told him Athens would not receive a cent more in aid until it voted to meet its commitments under the bailout deal.
"I will be glad even if we don't go to a referendum, which was never a purpose in itself. I'm glad that all this discussion has at least brought a lot of people back to their senses," he said in a speech to his cabinet. "If the opposition comes to the table to back the bailout, a referendum is not needed."
The conservative opposition and some lawmakers within Papandreou's socialist party PASOK demanded some kind of unity government which would push through parliament the 130 billion-euro rescue,,cheap adidas shoes, Greece's last financial lifeline.
Under intense pressure at home and from the leaders of Germany and France, Papandreou softened his insistence that the Greek people should decide in a referendum whether to accept the bailout, which demands yet more austerity.
Conservative leader Antonis Samaras led calls for a new government.
"I'm asking for the formation of a temporary, transitional government with an exclusive mandate to immediately hold elections," Samaras said in a statement. "And the ratification of the bailout deal from the current parliament."
Papandreou responded by welcoming the decision by Samaras to drop his previous opposition to the bailout package, which eurozone leaders nailed down only last week as they tried to prevent the bloc's debt crisis from running out of control. Papandreou reiterated that Greece's eurozone membership was not in question and that heading to elections immediately would entail a big risk of the country going bankrupt.
Greeks have fiercely opposed the spending cuts, tax hikes and job losses that have been the price of financial aid from the IMF and EU to tackle its huge debt and budget deficit.Moncler women's jackets This has led to a wave of strikes and outbreaks of violence on the streets of Athens.
A spokesman for the New Democracy Party said a transitional government should not be composed of party politicians. He declined to elaborate. However,discounted designer handbags the idea appeared to be gaining ground within Papandreou's own party.
A small group of senior PASOK lawmakers are preparing a proposal for a coalition government headed by former European Central Bank Vice President Lucas Papademos, a Greek.
Officials said Papandreou, who also called a vote of confidence in his government today, was not resigning and would await the result of the talks with New Democracy.,Moncler men jackets, "There is no resignation by the prime minister," one official said.
Finance Minister Evangelos Venizelos broke ranks with Papandreou, coming out against holding the referendum after the meeting with the German and French leaders.
Chaos over Greece's role in the eurozone swept financial markets with early losses in stocks and the euro turning to gains on hopes Athens might ditch its referendum plans. The Greek stock exchange rose 5 percent on speculation the referendum would be abandoned, with the index of bank shares soaring 15 percent. World stocks gained 0.9 percent after earlier being sharply lower.
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