Confusion has reigned today in Athens, clouding the first day of the G20 summit in
Cannes. Reports at midday that the Greek Prime Minister was to resign turned out to be false. Papandreou’s staying put, for now at least.
Instead, it seems there will be no referendum on Greece’s bailout package. In a sharp reversal, Papandreou reportedly told his Cabinet:
It seems he may have gained that assent, in that the opposition New Democracy party will support the deal. But they are still calling for Papandreou’s resignation and for elections to be held in six weeks’ time. The PM has rejected these calls, saying a snap election would be “catastrophic”.“The referendum was never an end in itself. We had a dilemma – either true assent or a referendum. I said yesterday, if the assent were there, we would not need a referendum.”
He may not have the power to stop them though: he faces a confidence vote tomorrow and has just seen the opposition leader and his deputies walk out of the parliamentary chamber.
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