European Leaders Set for Showdown on Greek Debt Referendum
European leaders are set for a showdown Wednesday with Greek Prime Minister George Papandreou over his call for a referendum on a debt-relief agreement.
French President Nicolas Sarkozy and German Chancellor Angela Merkel summoned the Greek leader to a meeting in Cannes, France, a day ahead of the start of the Group of 20 world leaders from established and emerging countries. Greece is not a member of the group, but Papandreou's unexpected referendum plan has quickly become the summit's central issue.
The call for the Greek vote sent world stock markets plunging Tuesday, as investors worried the debt-relief plan would unravel and Greece would default on its international loans. The agreement reached last week calls for banks to forgive $140 billion in Greek debt to help stabilize its precarious finances. But the Greek masses have protested loudly - and sometimes violently - against the austerity measures Greece's international creditors have forced it to accept.
Sarkozy said the continent-wide agreement is "the only way to solve Greece's debt problem." Merkel joked that she loves Greeks, "when they act reasonably."
Greek Cabinet ministers early Wednesday gave their support for Papandreou's referendum plan. But whether he could survive Friday's scheduled confidence vote in Parliament remained an open question.
Some lawmakers in his tenuous Socialist party majority called for his resignation or threatened to defect on the confidence vote in order to kill the referendum. Others called for a temporary unity government to carry out the debt-relief agreement ahead of a new national election.
The prime minister told his Cabinet that Greeks would be asked whether they want to keep using the euro currency, instead of returning to its old drachma currency. He said any deal will only be implemented with the consent of the Greek people, and that he hopes any turmoil caused by his unexpected announcement will only be temporary.
fuente: La Voz de América, http://www.voanews.com/english/news/europe/European-Leaders-Set-for-Showdown-on-Greek-Debt-Referendum-133069438.html
French President Nicolas Sarkozy and German Chancellor Angela Merkel summoned the Greek leader to a meeting in Cannes, France, a day ahead of the start of the Group of 20 world leaders from established and emerging countries. Greece is not a member of the group, but Papandreou's unexpected referendum plan has quickly become the summit's central issue.
The call for the Greek vote sent world stock markets plunging Tuesday, as investors worried the debt-relief plan would unravel and Greece would default on its international loans. The agreement reached last week calls for banks to forgive $140 billion in Greek debt to help stabilize its precarious finances. But the Greek masses have protested loudly - and sometimes violently - against the austerity measures Greece's international creditors have forced it to accept.
Sarkozy said the continent-wide agreement is "the only way to solve Greece's debt problem." Merkel joked that she loves Greeks, "when they act reasonably."
Greek Cabinet ministers early Wednesday gave their support for Papandreou's referendum plan. But whether he could survive Friday's scheduled confidence vote in Parliament remained an open question.
Some lawmakers in his tenuous Socialist party majority called for his resignation or threatened to defect on the confidence vote in order to kill the referendum. Others called for a temporary unity government to carry out the debt-relief agreement ahead of a new national election.
The prime minister told his Cabinet that Greeks would be asked whether they want to keep using the euro currency, instead of returning to its old drachma currency. He said any deal will only be implemented with the consent of the Greek people, and that he hopes any turmoil caused by his unexpected announcement will only be temporary.
fuente: La Voz de América, http://www.voanews.com/english/news/europe/European-Leaders-Set-for-Showdown-on-Greek-Debt-Referendum-133069438.html
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