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GREECE:Debt crisis in Europe dominates G20 summit + Related News

Friday, November 4, 2011

Laaska News  Nov. 4 ,2011
Greece in limbo over referendum on EU bailout
EU firm on Greece bailout

In a joint statement on Thursday the chairman of the Council of Europe Herman van Rompuy and European Commission head Jose Manuel Barroso reiterated their resolve to check the spread of the hard-hitting debt crisis.

The European financial stability fund will be jacked up to 1 trillion euros and plans are apace to provide massive financial support to Greece, which will see much of its debt written off with voluntary help from private investors.



Greece in limbo over referendum on EU bailout

In Greece, the tense confrontation continues between Prime Minister George Papandreou and opposition parties before parliament holds a vote of confidence on the Cabinet on Friday.

On Thursday, Papandreou urged governing party lawmakers to speed up negotiations with the opposition camp. In a speech, he said the talks must be accelerated to put the EU bailout package into practice.

He also indicated the possibility of abandoning his proposal to hold a referendum on the EU plan on December 4th. He said the rescue plans can be implemented if the opposition accepts the EU proposals.

The opposition forces continue to demand Papandreou’s resignation, as they are sharply criticizing the government’s austerity plans that comply with EU requests.

Even some Cabinet members and governing party lawmakers are now opposing the Prime Minister’s call for a referendum.

 Debt crisis in Europe dominates G20 summit


Greek Prime Minister Papandreou’s Cabinet will face a vote of confidence on Friday. However, G20 leaders will have to wait and see if Greece’s planned referendum approves the EU bailout package.

French President Nikolas Sarkozy, who chairs the G20 summit meeting in Cannes, spoke to reporters after finishing the working sessions on Thursday.

Sarkozy said the debt crisis in Europe, especially the situation in Greece, dominated discussions on the first day of the summit.

He also said the swift implementation of a bailout is critical, and both the IMF and the United States have offered financial assistance.

Sources said that some Eurozone leaders criticized the Greek Prime Minister as irresponsible for announcing the referendum.

They said that unless Greece implements the rescue plan, no bailout money would be allocated.

Prime Minister Yoshihiko Noda said that Japan will consider cooperating if EU leaders take political leadership and are able to unite.

G20 leaders will make a statement on Friday. However, that will be greatly influenced by how the political situation develops in Greece.

Laaska News.