Wednesday, November 2, 2011

Greek PM defies anger to defend referendum plan

Greek Prime Minister George Papandreou said today he would push ahead with a referendum on an EU bailout deal, defying demands from lawmakers of his own party that he quit for jeopardising Greek membership of the euro.

"The referendum will be a clear mandate and a clear message in and outside Greece on our European course and participation in the euro," Papandreou told a late-night cabinet meeting, according to a statement released by his office.

"No one will be able to doubt Greece's course within the euro," he said, adding that market turmoil triggered by his announcement of the referendum late on Monday would be short-lived.

Papandreou's move threw into question the survival of crucial efforts to contain the euro zone's sovereign debt crisis.