Greek Bailout Deal Referendum Scrapped

Greece’s Prime Minister has scrapped plans for a referendum on the eurozone bailout plan – telling Sky News he never wanted it to happen.

The surprise climbdown, confirmed by the country’s finance minister, came after emergency talks in which the opposition party called for early elections and immediate approval of the rescue plan.

There are now unconfirmed reports that leader George Papandreou he has struck a deal to step down and hand power to a new coalition government if they help him win a confidence vote on Friday.

Mr Papandreou earlier told the Greek parliament that rejecting the bailout deal would signal the start of his country’s exit from the eurozone.