Euro crisis: Greek deal could end controversial referendum proposal

EURO CRISIS: A proposed Greek referendum on the eurozone bailout plan will be scrapped if ruling and opposition parties reach an agreement, according to the prime minister’s office.

Greek leader George Papandreou has been under pressure to stand down, following a split in his government over plans to hold a referendum on the bailout deal.

However, according to a government minister, Mr Papandreou is not intending to quit.

He will instead hold talks with the opposition over their calls for a transitional government and early elections.

“There is no reason to have a referendum if there is consensus between the two large parties,” a spokesman for the prime minister’s office said.

Mr Papandreou has been holding an emergency meeting with his cabinet, but a report he was then due to meet the president has been denied by the presidential office.

Markets across Europe began to rise amid reports of a resignation, as investors hoped a new Greek leader would approve the eurozone rescue deal without calling a public vote.