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Greek government on edge of collapse over referendum

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The Greek Cabinet will meet in emergency session at noon on Thursday, ahead of a vote of confidence on Friday following a government split after the leading majority Pasok party MPs withdrew support for the eurozone bailout referendum.

The Greek Cabinet will meet in emergency session at noon on Thursday, ahead of a vote of confidence on Friday following a government split after the leading majority Pasok party MPs withdrew support for the eurozone bailout referendum.

Greek Prime Minister George Papandreou has said he will hold a referendum on whether to accept the terms of a 130-billion-euro bailout package.
His Pasok party holds 152 of 300 seats, implying Papandreou could face defeat.

The government is facing a vote of confidence in parliament on Friday over an EU aid package that involves new economic austerity measures and Greece’s membership in the eurozone.

The austerity plan has encountered strong opposition in Greece.

Finance Minister Evangelos Venizelos broke ranks with Papandreou on the referendum proposal.

Many in Greece are calling for the establishment of a national unity government, including the opposition.

Socialist MP Eva Kaili said she will not support the government in the confidence vote, and urged Papandreou to reverse his referendum decision.

German Chancellor Angela Merkel said the referendum “in essence is about nothing else but the question [if] Greece wants to stay in the euro zone, yes or no?”

France and Germany have said no more aid will be given to Greece until after the referendum.

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