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Greek referendum: Papandreou's MPs withdraw support Greek referendum: Papandreou's MPs withdraw support
(40 minutes later)
The Greek cabinet is to meet in emergency session at 10:00 GMT (12:00 local) after members of Prime Minister George Papandreou's party withdrew support for a referendum.The Greek cabinet is to meet in emergency session at 10:00 GMT (12:00 local) after members of Prime Minister George Papandreou's party withdrew support for a referendum.
Mr Papandreou shocked European leaders and financial markets by calling a vote on the eurozone bailout plan.Mr Papandreou shocked European leaders and financial markets by calling a vote on the eurozone bailout plan.
Early on Thursday, Finance Minister Evangelos Venizelos spoke out publicly against the idea of a referendum.Early on Thursday, Finance Minister Evangelos Venizelos spoke out publicly against the idea of a referendum.
The EU says it will not disburse rescue funds until after the plebiscite.The EU says it will not disburse rescue funds until after the plebiscite.
However, Mr Papandreou's centre-left Pasok party is deeply divided on the referendum.However, Mr Papandreou's centre-left Pasok party is deeply divided on the referendum.
Several Pasok MPs criticised the idea, calling instead for a parliamentary vote on whether to accept the bailout terms, a government of national unity or early elections.Several Pasok MPs criticised the idea, calling instead for a parliamentary vote on whether to accept the bailout terms, a government of national unity or early elections.
Another has called on Mr Papandreou to resign.
In a statement early on Thursday, Mr Venizelos said Greece's membership of the euro could not be put in doubt.In a statement early on Thursday, Mr Venizelos said Greece's membership of the euro could not be put in doubt.
Funds delayedFunds delayed
"If we want to protect the country we must, under conditions of national unity and political seriousness and consensus, implement without any delay the decision of 26 October. Now, as soon as possible," Mr Venizelos said."If we want to protect the country we must, under conditions of national unity and political seriousness and consensus, implement without any delay the decision of 26 October. Now, as soon as possible," Mr Venizelos said.
On 26 October, eurozone countries agreed to give Greece a second bailout of 130bn euros (£111bn; $178bn). Private banks would also write off 50% of the Greek state debts they hold.On 26 October, eurozone countries agreed to give Greece a second bailout of 130bn euros (£111bn; $178bn). Private banks would also write off 50% of the Greek state debts they hold.
In return, Greece must enact austerity measures, cutting wages and salaries, and making thousands of civil servants redundant.In return, Greece must enact austerity measures, cutting wages and salaries, and making thousands of civil servants redundant.
Mr Papandreou plans to put the bailout to a popular vote on 4 or 5 December.Mr Papandreou plans to put the bailout to a popular vote on 4 or 5 December.
Before then, he faces a confidence vote on Friday.Before then, he faces a confidence vote on Friday.
The BBC's Mark Lowen, in Athens, says Mr Venizelos' statement exposes a rift at the very heart of the Greek government.The BBC's Mark Lowen, in Athens, says Mr Venizelos' statement exposes a rift at the very heart of the Greek government.
One of Mr Venizelos' advisers told the BBC the minister did not approve of the referendum and does not consider it a priority.One of Mr Venizelos' advisers told the BBC the minister did not approve of the referendum and does not consider it a priority.
A leading member of Mr Papandreou's centre-left Pasok party, Vasso Papandreou (no relation), also repeated her call for a national unity government and early elections.
Another member of the Greek government, Development Minister Michalis Chryssohoidis, also criticised the referendum plan, Greek state media said.
He said that parliament, and not the people, should vote on the unpopular EU rescue deal, state NET television reported on Thursday.
On Wednesday, Mr Papandreou said that his shock decision to call a national vote on the bailout package was effectively a decision on the country remaining part of the euro bloc.On Wednesday, Mr Papandreou said that his shock decision to call a national vote on the bailout package was effectively a decision on the country remaining part of the euro bloc.
Pasok holds 152 seats out of 300 in parliament. Pasok holds 152 seats out of 300 in parliament. However, NET television says two Pasok MPs have decided to abstain from the confidence vote.
Mr Papandreou could theoretically still survive, depending on how many opposition MPs vote on the motion.
Mr Venizelos travelled to Cannes on Wednesday for meetings at the G20 summit of leading industrialised countries.Mr Venizelos travelled to Cannes on Wednesday for meetings at the G20 summit of leading industrialised countries.
He issued his statement upon his return to Athens at 04:45 local time (06:45 BST).He issued his statement upon his return to Athens at 04:45 local time (06:45 BST).
Greece was due to receive the next tranche of funds from its first bailout later this month. However, the EU has said it will not transfer the 8bn euros (£6.88bn; $10.9bn) until after the referendum.Greece was due to receive the next tranche of funds from its first bailout later this month. However, the EU has said it will not transfer the 8bn euros (£6.88bn; $10.9bn) until after the referendum.
As a result, Greece may confront difficulties paying pensions and salaries.As a result, Greece may confront difficulties paying pensions and salaries.
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