Greek Leader Calls Off Referendum on Bailout Plan - Business

The decision on Thursday to reject the proposed European popular vote does not owe a lot out of the political turmoil here, Papandreou still faces a revolt in their own Socialist Party and the rage of some of the opposition, and the confidence vote later on Friday, seen here in a difficult challenge. But talk of a possible unity government eased fears of an international direct new elections and the threat of default, if he did not survive in office, cheering on the market in Europe and abroad.

Stocks rose as much as 3 percent in Asia on Friday, following the development of Athens and the leading indexes in Britain, France and Germany, was opened slightly increased, in spite of the possibility of further controversy among Greek politicians, but the German DAX soon started to slide.

In an address to his party's Central Committee on Thursday evening, Papandreou said that there was no need for a referendum now, the opposition New Democracy party said was the first time that it would support the agreement, reached last week, to write the Greek debt in return for saving and commitment to the euro currency.

The Prime Minister called on the New Democracy party to become "co-negotiators," a lot, and later said that the unity government negotiations should begin immediately. He also suggested that he would be willing to step aside so that others could form a unity government if he won a confidence vote on Friday. "I do not stick to my place," he said.

He made these comments after the New Democracy leader Antonis Samaras, accused the Prime Minister of "deception." Mr. Samaras was angry that Mr Papandreou seemed to be trying to hold on in office after securing the cooperation with the opposition.

Papandreou's decision to cancel the referendum was followed by three days of recent speeches that whipsawed the world market, shook the Continent of its foundations and driven mad by European leaders to give an ultimatum Wednesday to demand that Greece to finally decide if it wanted to remain part of the European Union and its currency bloc, the euro area.

But the day after the political maneuvering, the Greek Byzantine political storm began to look less than the starting point in Europe than in haste to keep the parliamentary activity after the Prime Minister, who was looking for a way to shore up support from both the Socialists and the opposition - or negotiate a graceful exit. As has happened so often in the euro crisis, the fate of the company seemed to depend on the political intrigue of bone one of its smallest members.

Initially, Papandreou said offered to resign before the confidence vote on Friday. Late in the afternoon, however, the Greek news media reported that the Board of Directors' meeting, he not only refused to resign but called off the referendum.

Late on Thursday, had been reports that Mr Papandreou had agreed to resign after the vote of confidence on Friday, when members of his cabinet urged him to do so for the good of the party. The Prime Minister, in this account, did not resist the idea.

He has offered no hint of this in public, he said, simply tries to do what is best for Greece, which is to keep the European Union and the currency area.

"The question was never about the referendum, but whether we are willing to accept the decisions taken on Oct. 26," he said, referring to the European Union owe a lot, which wrote down some of the Greek privately owned debt 50 percent, cutting the nation's private and public sector debt burden by about 30 per cent more than anything. "What is at stake is our position in the EU"

Finance minister, Evangelos Venizelos, confirmed that the referendum was canceled, and said the government should seek the approval of loan deal from the majority of the wider 180 members in parliament - which would require some support to the opposition - rather than a simple majority of 151, which was supported by the above measures.