The Greek prime minister was today preparing to resign after growing opposition within his own party to his shock call for a referendum on the Euro bailout.  George Papandreou faces a no confidence vote tomorrow which he is expected to lose.  But as his own finance minister, Lucas Papedemos, broke ranks to say he was against a referendum, the PM called an emergency cabinet meeting for today.   http://www.dailymail.co.uk/news/article-2055872/Greece-referendum-George-Papandreou-prepares-Angela-Merkel-Nicolas-Sarkozy.html#ixzz1ceT4vlll

Lucas Papedemos: Ex Federal Reserve bank of Boston, Ex Governor of the Greek Central Bank, Ex Vice President of the European Central Bank and Trilateral Commission member

http://en.wikipedia.org/wiki/Lucas_Papademos

see also -

http://inquiringminds.cc/it-wasnt-even-necessary-to-have-an-embassy-in-athens-during-june-to-know-that-preparations-were-being-made-for-a-referendum-anybody-who-read-the-greek-press-would-have-known-about-the-parliamentary

Kebabbed! Greek PM ‘to quit’ as his own party rebel over shock decision to call a referendum

• Greece finance minister breaks ranks with PM George Papandreou
• Country could face enforced bankruptcy and ejection from the euro
• Germany and France cut off bailout cash until Greek people vote in favour
• China refuses to invest in euro stability fund until situation is resolved
• Emergency Greek cabinet meeting to take place this lunchtime
• Papandreou to face confidence vote in Greek parliament tomorrow

By James Chapman and Graham Smith

Last updated at 2:26 PM on 3rd November 2011

The Greek prime minister was today preparing to resign after growing opposition within his own party to his shock call for a referendum on the Euro bailout.

George Papandreou faces a no confidence vote tomorrow which he is expected to lose.

But as his own finance minister broke ranks to say he was against a referendum, the PM called an emergency cabinet meeting for today.

State television says he will meet the country’s president Karolos Papoulias immediately after the session. The BBC’s Athens correspondent Mark Lowen says he is expected to propose a coalition government and step aside as leader.

It is understood this would be headed by the former vice-president of the European Central Bank Lucas Papademos.

Under pressure: Greece’s Prime Minister George Papandreou (centre, in rear of the car) leaves the G20 summit after a stormy session with world leaders

Spotlight: George Papandreou’s face shows the strain as he spoke after crisis talks in Cannes last night. His finance minister Evangelos Venizelos (right) today broke ranks with the Greek PM over the referendum

Their eyes meet across a table: French President Nicolas Sarkozy (second left) and Papandreou (right) share an uncomfortable glare as German Chancellor Angela Merkel diverts her attention elsewhere

KEY PLAYERS IN THE GREEK DRAMA

• Prime Minister George Papandreou, leader of Panhellenic Socialist Movement (Pasok). Voted into power in October 2009 when his party defeated the Right-conservative New Democracy party.
• Finance minister Evangelos Venizelos. Once challenged Papandreou for the Pasok leadership, says he did not know of the PM’s plan to call for a referendum.
• Leader of the Opposition Antonis Samaras, current president of the New Democracy party, who took over after the last election. Widely politically discredited in Greece but now helped by the fact hat a coalition may be Greece’s best hope.
• Lucas Papademos, the former vice president of the European Central Bank. He is a well-respected figure in Greece and is expected to head up any coalition government

Mr Papandreou position became increasingly untenable this morning after it emerged a ‘small group’ of MPs from his party Pasok were about to propose a coalition government. They had spent the last few hours trying to convince him to go.

Ten MPs have already publicly called for a new coalition while 15, including five ministers and deputy ministers have knocked down the referendum call.

One called the situation ‘a madhouse’.

The Greek premier was savaged by German Chancellor Angela Merkel and French President Nicolas Sarkozy at a meeting in Cannes last night.

He was threatened with enforced bankruptcy unless his country signed up to austerity measures.

Europe’s leaders also told him any referendum had to be on Greece remaining in the Eurozone, not a yes or no vote on cuts.

Today, the Greek finance minister Evangelos Venizelos issued a written statement on returning from Cannes where he accompanied Mr Papandreou for talks with top European officials.

Mr Venizelos said Greece’s position within the euro ‘cannot depend on a referendum’. Following his move, the deputy finance minister, the health minister and the development minister also spoke out against holding a referendum.

As the eurozone reeled from yesterday’s shock announcement, Germany and France said they would cut off Greece’s bailout cash until its people voted in favour.

And, in another development, China today said it refuses to invest in the European Financial Stability Fund until the situation has been resolved.

Talking shop: David Cameron greets French president Nicolas Sarkozy as the G20 summit gets underway in Cannes, France

Working lunch: Barack Obama greets Australian prime minister Julia Gillard (left) as world leaders including the French president (right) discuss the economic crisis

Talks: David Cameron shakes hands with India’s Prime Minister Manmohan Singh

Global stock markets initially fell sharply this morning. The FTSE 100 Index opened 1.2 per cent down, but rallied to climb by 1.13 per cent after lunch. The DOW Jones also rose 1.53 per cent over hopes of an agreement.

David Cameron last night warned of a ‘global storm’ threatening to drag down Britain’s economy.

Sources said the latest payment of almost £7billion from the EU and International Monetary Fund, due to be made soon to Athens, would be placed on hold until after a referendum.

The EU is attempting to bully Greece into holding a popular vote on the country’s future membership of the EU and eurozone, rather than a more narrow question relating to deeply unpopular austerity measures.

And Germany is insisting there is no possibility of renegotiating the rescue deal struck at a Brussels summit last week.

It would see half of Greece’s towering debts written off but the stricken country faces a decade of tax rises and spending cuts.

Crunch time: Mr Obama towers over his French counterpart ahead of the start of the G20 summit in Paris

Holding on: The two leaders greet each other at their lecterns and, right, Italian Prime Minister Silvio Berlusconi arrives for the crucial summit

Meeting the public: U.S. President Barack Obama shakes hands with local residents under the watchful eye of Mr Sarkozy as they arrive at the G20 conference in Cannes this morning

Chinese President Hu Jintao (centre) arrives to attend a meeting on the sidelines of the G20 summit today

Enlarge   Down to business: Mr Sarkozy (centre left) and Mr Obama (right) hold a bilateral meeting ahead of the summit

From left to right: Russian President Dmitry Medvedev, Chinese President Hu Jintao, Brazilian President Dilma Rousseff, Indian Prime Minister Manmohan Singh and South African President Jacob Zuma attend a meeting

NEWSPAPER CALLS FOR GERMANY TO HOLD ITS OWN REFERENDUM

Germany’s mass circulation Bild newspaper has today also called for a referendum – whether the country should continue to help the Greece.

In a commentary, which appears on its website, and which begins ‘Not another cent’ it argues it is a safe bet the Greeks will vote against any plans for austerity in a referendum.

It adds: ‘One can understand that. But it is unacceptable. It is not the German finance minister who is vouching for Greece but the German taxpayer.’

It ends: ‘And if the majority reject the austerity programme, then Greece no longer deserves the euro!’

The paper even mocks up a voting slip which has ‘YES, keep throwing more dosh at them’ and ‘NO, not another cent for the broke Greeks, take the euro away from them!’

A Greek government spokesman insisted last night that the referendum, expected to take place next month if the government survives that long, will ask voters about the bailout, not euro membership.

The threat to cut off the emergency funding risks inflaming public opinion in the country, which is already seeing a sharp rise in anti-German sentiment.

But an IMF source confirmed Athens was unlikely to get any more cash until after the referendum, adding: ‘The board will want comfort that Greece will fulfil its commitments and right now Papandreou is unable to give that.’

An EU source added: ‘The sooner Greece holds the referendum, the sooner the sixth tranche will be paid. But right now, it isn’t going to be paid. Not only are [Greece] putting at risk their country, which I think is incredible, but they are putting at risk the euro area stability, and this is too much.’

Without the sixth tranche of funding, due to be paid in the middle of this month, Athens only has enough cash to keep afloat for a few more weeks.

Read more: http://www.dailymail.co.uk/news/article-2055872/Greek-crisis-George-Papandreou-quit-party-rebel-Greece-referendum.html#ixzz1ceZAQVlU