Wednesday, November 2, 2011

Greek cabinet backs bailout referendum

Greek Prime Minister George Papandreou has called for a referendum on the EU bailout deal and a vote of confidence on his government.

ATHENS (CNN) -- Greece's cabinet voted Wednesday to support Prime Minister George Papandreou's call to hold a referendum as soon as possible about the latest bailout plan, ministers coming out of the meeting told a CNN affiliate.

The vote was unanimous, though some of the ministers expressed criticism prior to casting their votes, CNN affiliate Mega Channel reported.

The cabinet vote came hours before German Chancellor Angela Merkel, French President Nicolas Sarkozy and senior figures from the International Monetary Fund and European Union were to meet Wednesday with Greek officials at an emergency meeting in Cannes, France, ahead of the G20 summit.

Their meeting comes a day after U.S. and European stock markets tumbled after Papandreou's call for the referendum on international aid for his country.

A "no" vote could theoretically force Greece to crash out of the euro and send shock waves through the global financial system.

Papandreou is seeking public backing from the Greek people for last week's bailout deal, which took months to reach.

But the move created turmoil in domestic politics, with Papandreou forced to hold an emergency Cabinet meeting late Tuesday, and angered his European counterparts.

Sarkozy and Merkel issued a terse statement on Tuesday saying they were "determined to ensure the full implementation, without delay, of decisions adopted by the summit, which are necessary now more than ever." To top of page

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