Friday, November 4, 2011

Greece PM Papandreou faces knife-edge confidence vote

BBC News
November 4, 2011

Greece's PM George Papandreou is set to face a crucial no-confidence vote, with the outcome on a knife-edge.

Mr Papandreou shocked EU partners and sent markets into turmoil after calling for a referendum on a hard-fought EU deal to bail out debt-ridden Greece.

The finance minister said on Friday the referendum had now been scrapped, but even if the PM wins he faces an unclear future, amid new calls to resign.

The developments have overshadowed a key G20 meeting in Cannes.

Eurozone leaders fear that failure to solve the Greek debt crisis could risk it spreading to other vulnerable economies, particularly Italy.

Germany had said a referendum would essentially be a vote on whether Greece wanted to be part of the EU and that the stability of the eurozone was more important than Greek membership.

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