Greece calls referendum on new EU aid deal

Greek Prime Minister George Papandreou on Monday called a referendum on a new EU aid package and said he would ask for a vote of confidence to secure support for his policy for the remainder of his four-year term, which expires in 2013.

"We trust citizens, we believe in their judgement, we believe in their decision," he told ruling Socialist party lawmakers.

Eurozone leaders agreed last week a second, 130 billion euro bailout for the cash-strapped country as well as a 50-percent write-down on its crippling debt to make it sustainable.

The referendum will be held in a few weeks, after the agreement is finalised, Papandreou said.

Nearly 60 percent of Greeks view Thursday's EU summit agreement on the new bailout package as negative or probably negative, a survey showed on Saturday.

Repeated austerity measures to qualify for bailout payments under a first bailout agreement last year has led to several defections from Papandreou's Socialist party, which trails in opinion polls.