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| Greek PM Papandreou faces party revolt over bailout | Greek PM Papandreou faces party revolt over bailout |
| (40 minutes later) | |
| Six leading members of Greece's governing Pasok party have called on Prime Minister George Papandreou to resign, the day after he called a referendum on the proposed EU bailout. | Six leading members of Greece's governing Pasok party have called on Prime Minister George Papandreou to resign, the day after he called a referendum on the proposed EU bailout. |
| One MP has defected from Pasok, cutting Mr Papandreou's parliamentary majority to two seats - 152 out of 300 - ahead of a confidence vote on Friday. | One MP has defected from Pasok, cutting Mr Papandreou's parliamentary majority to two seats - 152 out of 300 - ahead of a confidence vote on Friday. |
| The opposition has called for early elections, saying the referendum jeopardises Greece's EU membership. | The opposition has called for early elections, saying the referendum jeopardises Greece's EU membership. |
| European markets have fallen sharply. | European markets have fallen sharply. |
| Last week, eurozone leaders agreed on a 100bn-euro loan (£86bn; $140bn) to Athens and a 50% debt write-off. | Last week, eurozone leaders agreed on a 100bn-euro loan (£86bn; $140bn) to Athens and a 50% debt write-off. |
| In return, Greece must make deep cuts in public spending, slashing pensions and wages and making thousands of civil servants redundant. | In return, Greece must make deep cuts in public spending, slashing pensions and wages and making thousands of civil servants redundant. |
| 'Blackmail' | 'Blackmail' |
| Another MP from Mr Papandreou's centre-left Pasok party, Vasso Papandreou (no relation) called for a government of national unity. | Another MP from Mr Papandreou's centre-left Pasok party, Vasso Papandreou (no relation) called for a government of national unity. |
| The Greek referendum call is, while it lasts, effectively a plebiscite on euro membership. | |
| I say "while it lasts" because the opposition is mobilising a parliamentary manoeuvre to bring down the government, which may succeed - returning Europe to its status quo of containable trauma. | |
| If Greeks reject the 50% controlled default on debts they owe to the banking sector, then the arithmetic I revealed on Newsnight on the eve of the Euro summit comes into play - without a 50% haircut, and a further 130bn euro bailout, on top of 110bn, Greek debt spirals out of control and the country goes bust. | |
| "I call on the president to convene the council of political leaders with the goal of forming a government of national salvation in view of safeguarding the EU package agreed on 27 October, and then to immediately hold elections," said Ms Papandreou, who chairs the parliamentary committee on economic affairs. | "I call on the president to convene the council of political leaders with the goal of forming a government of national salvation in view of safeguarding the EU package agreed on 27 October, and then to immediately hold elections," said Ms Papandreou, who chairs the parliamentary committee on economic affairs. |
| Antonis Samaras, leader of the main opposition New Democrats, met Greek President Karolos Papoulias for talks on Tuesday morning. | Antonis Samaras, leader of the main opposition New Democrats, met Greek President Karolos Papoulias for talks on Tuesday morning. |
| "In order to save himself, Mr Papandreou has posed a dilemma of blackmail that puts our future and our position in Europe in danger," Mr Samaras said after the meeting. | "In order to save himself, Mr Papandreou has posed a dilemma of blackmail that puts our future and our position in Europe in danger," Mr Samaras said after the meeting. |
| The next elections are not scheduled until 2013. | The next elections are not scheduled until 2013. |
| Opinion polls in Greece show that most people do not support the austerity deal. The most recent general strike, on 19-20 October, brought tens of thousands out on to the streets nationwide. | Opinion polls in Greece show that most people do not support the austerity deal. The most recent general strike, on 19-20 October, brought tens of thousands out on to the streets nationwide. |
| No date for the referendum has yet been announced, but Mr Papandreou indicated it would take place in a few weeks' time, once the details of the bailout package have been finalised. | No date for the referendum has yet been announced, but Mr Papandreou indicated it would take place in a few weeks' time, once the details of the bailout package have been finalised. |
| He also ruled out early elections, saying they would be negative for the country. | He also ruled out early elections, saying they would be negative for the country. |
| Mr Papandreou has called a vote of confidence in his government for Friday. | Mr Papandreou has called a vote of confidence in his government for Friday. |
| Meanwhile, Greek Finance Minister Evangelos Venizelos was taken to hospital on Tuesday morning, suffering from stomach pains. | Meanwhile, Greek Finance Minister Evangelos Venizelos was taken to hospital on Tuesday morning, suffering from stomach pains. |
| His office said he was likely to be released by the evening. | His office said he was likely to be released by the evening. |
| Mr Venizelos was given no warning that Mr Papandreou intended to call a referendum, an anonymous source told the Reuters news agency. | Mr Venizelos was given no warning that Mr Papandreou intended to call a referendum, an anonymous source told the Reuters news agency. |
| "Venizelos had no idea about the referendum. All he knew about was the vote of confidence," a government official told Reuters on condition of anonymity. | "Venizelos had no idea about the referendum. All he knew about was the vote of confidence," a government official told Reuters on condition of anonymity. |
| "He told Papandreou he should inform foreign partners and a letter was drafted in the early hours. | |
| "Elections are a national necessity," he said, adding that his party would avert "opportunistic experiments" such as the proposed referendum. | "Elections are a national necessity," he said, adding that his party would avert "opportunistic experiments" such as the proposed referendum. |