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    November 01, 2011

Papandreou Vows to Honor Public Verdict on Debt Plan

   VOA News
   Greek Prime Minister George Papandreou, Nov 1, 2011
   Photo: AP
   Greek Prime Minister George Papandreou, Nov 1, 2011

   The Greek prime minister has stunned the world by saying he will put
   his country's debt-relief deal with the European Union to a public vote
   and abide by the voters' decision.
   Prime Minister George Papandreou's announcement sent global stock
   markets plummeting as investors reacted to a major jolt of uncertainty
   in the European economy.
   Papandreou told a Cabinet meeting Tuesday that the Greek people will be
   asked whether they want to keep using the euro 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 be
   only temporary.
   A number of lawmakers in the prime minister's Socialist Party oppose an
   up-or-down public vote, which would come early next year. Some party
   members are demanding Papandreou's resignation, and his government
   faces a no-confidence vote Friday in Parliament.
   Papandreou has strongly supported the European Union plan to cut
   Greece's debt, which would obligate severe domestic spending cuts and
   tax hikes. It also would eliminate jobs now held by thousands of public
   employees.
   Terms of the latest deal offered by the EU call for European banks to
   forgive 50 percent of Greece's debt. That appeared to calm nervous
   markets at first, but then Mr. Papandreou told Socialist lawmakers
   Tuesday that he will honor results of the referendum.
   EU leaders Herman Van Rompuy and Jose Manuel Barroso said they "fully
   trust" Greece to uphold last week's eurozone debt-relief agreement.
   French President Nicolas Sarkozy said letting people vote is "always
   legitimate," but that a Europe-wide agreement is the only possible way
   to resolve the debt crisis.
   World Bank president Robert Zoellick said that if voters reject the
   plan, "It's going to be a mess."
   Sarkozy and German Chancellor Angela Merkel plan to meet Wednesday in
   Cannes, France, with leaders from the International Monetary Fund and
   Greece to discuss the latest snag in solving the continent's debt
   crisis.

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