Greek Finance Minister Says No Referendum; Papandreou Backs Off Vote Pledge

Although there has been no official word out of the Greek government, Finance Minister Venizelos said Thursday that there will be no public referendum vote on either the EU bailout plan or the question of staying in the EU.

There are also reports that Prime Minister George Papandreou has softened his stance on the referendum. The WSJ is reporting that Papandreou would be willing to scrap the referendum vote if his political opposition would agree to talks regarding the support of harsh budget cuts required in order to secure future EU bailout aid.

Papandreou told cabinet members Thursday, "If the opposition comes to the table to back the bailout, a referendum is not needed.”

Mr. Papandreou also said Thursday in a cabinet meeting that he plans to approach opposition leader Antonis Samaras to discuss the next steps towards a broader consensus on the issue of future cuts.

Reuters reports that Conservative leader Samaras has led the calls for a new government to step in after the referendum announcement. "I'm asking for the formation of a temporary, transitional government with an exclusive mandate to immediately hold elections. And the ratification of the bailout deal from the current parliament," Samaras said in a statement.

Recall that Papandreou’s majority in the Greek parliament has been decimated in response to the PM’s call for the public referendum and that his government faces a confidence vote on Friday.

The defections from Papandreou’s party present a clear signal that the Pasok socialist party no longer has the political clout or mandate needed to impose the financial hardships needed in order to receive ongoing aid.

 

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