Greek PM to withdraw referendum plan

George Papandreou
The Prime Minister of Greece

Greek PM to withdraw referendum plan

The Greek Prime Minister, George Papandreou, says he will drop the idea of a referendum on a vital bailout package and hold talks with the opposition to resolve the country's political and economic crisis.

In a speech to his cabinet on Thursday, Papandreou said he would assign the task of discussions with the opposition to two senior party members and praised their support of the bailout deal.

Possible consensus

“If the opposition agreed to back the deal in parliament no referendum would have to be held,” he said.

"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 the text of his speech released to media.

Papandreou said he would talk to [opposition leader Antonis] Samaras to enable them examine the next steps on the basis of a wider consensus. If a consensus is reached, there will not be need for a referendum.

Eurozone membership

He 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.

Addressing the parliament, Papandreou thanked the opposition for their change of heart towards the bailout, which according to him is “astonishing as people in Greece would say that Papandreou is mad as it was him who suggested the idea of a referendum in the first place."

Call for transitional government

The opposition New Democracy Party had earlier in the day called for a transitional government to lead the country until it secures a vital aid payment from foreign lenders, with a view to new elections after the funds are received.

Papandreou was told by European leaders on the sidelines of the G20 summit in France that his country had to choose whether it wants to stay in the eurozone or miss the bailout.

He faces a confidence vote on Friday. A series of defections cast doubts on whether he will keep his job.

Papandreou had in the run-up to the emergency cabinet meeting told the Greek state TV he was not resigning.

ALJAZEERA/Williams