It appears that Greece will decide on whether to leave the European Union or have a civil war. What’s your trigger?
David DeGerolamo
Greece’s Prime Minister has told Sky News the referendum on the the eurozone bailout plan will no longer go ahead – and it was never his intention for it to happen.
The announcement came after an emergency cabinet meeting, in which the opposition party called for early elections and immediate approval of the bailout deal.
“The referendum was never an end in itself,” George Papandreou told the cabinet according to statements released by his office.
“We had a dilemma – either true assent or a referendum. I said yesterday, if the assent were there, we would not need a referendum.”
Mr Papandreou had been under pressure to stand down, as a split emerged in his government over the plans to hold a public vote on the rescue deal.
He now says he has no intention to quit, but will hold talks with the opposition over their calls for a transitional government and early elections.
However, he warned against holding elections in the near future – as this would entail a “big risk of bankruptcy”.
Markets across Europe have been rising since lunchtime, as investors realised the likelihood of a Greek referendum – and subsequent threat of a ‘no’ vote – was falling.
