Athens - After a tumultuous day of political gamesmanship, Prime Minister George Papandreou called off his plan to hold a referendum on Greece’s new loan deal with the European Union, withdrew his previous offers to resign and opened talks on a unity government with his conservative opponents.
In an address to his party’s central committee on Thursday evening, he said there was no need for a referendum now that the opposition New Democracy party had said it would back the debt deal. He invited that party to become “co-negotiators” on the new deal.
“The question was never about the referendum but about whether or not we are prepared to approve the decisions on Oct. 26,” he said, referring to the European Union debt deal. “What is at stake is our position in the E.U.”
Shortly afterward, the finance minister, Evangelos Venizelos, confirmed the cancellation of the referendum and added that the government will now seek approval of the loan deal from a full majority of 180 in Parliament, rather than the simple majority of 151 that has supported previous measures.
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