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Greek cabinet backs referendum on debt rescue plan

Nov. 2, 2011 - 11:38 By

ATHENS, Nov 2, 2011 (AFP) - Greek Prime Minister George Papandreou secured the unanimous backing of his cabinet for a referendum on the eurozone debt rescue plan, government spokesman Elias Mossialos said early Wednesday.

The cabinet also approved Papandreou's decision to hold a vote of confidence in parliament on his government, Mossialos told reporters.

"The referendum will be a clear mandate, but also a clear message inside and outside Greece on our European course and our euro membership," Papandreou told the cabinet meeting.

Explaining his opposition to calls for an early election, he argued that "everything would stop" in an election campaign and the country would "be dragged to a risk of bankruptcy".

Papandreou added that his EU peers "had been advised" of his plans "and will respect and support" the country's efforts.

But his plan for the referendum has already drawn opposition from some of his own party's members in parliament.

One deputy has defected from the party, while a group of six others on Tuesday called for the prime minister to resign.

The defection left the socialists with just 152 deputies in the 300-seat parliament.