Wednesday, November 2, 2011

Greek referendum likely to sidestep bail-out issue

Financial Times
November 2, 2011

Greece’s government plans to hold a referendum in early December on the country’s role in the European Union in which voters will be asked not to approve or reject the country’s next financial rescue but rather to answer a broader question centred on membership of the EU and the 17-nation eurozone.

People close to to the ruling Pasok Socialist party indicated that Mr Papandreou wanted a vote on the rescue package itself, but constitutional lawyers said it would have to be on a broader national issue, indicating that it could centre on support for Greece’s EU and eurozone membership.

“There have been some mixed messages but nothing’s final till we see the actual question,” said a source close to Pasok.

Hwoever, the prospect of a referendum has increased after George Papandreou, prime minister, rallied his cabinet behind his proposal and set his sights on winning a parliamentary confidence vote this week.

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