Real-Time Quote
US News
Page 1 of 3 | Next Page
Show Entire Article

Referendum Battle Risks Greek Government Collapse: Analyst
CNBC.com | November 03, 2011 | 05:28 AM EDT

Tensions between Greek Prime Minister George Papandreou and Finance Minister Evangelos Venizelos are increasing the risk of a Greek government collapse, after Europe and the International Monetary Fund (IMF) warned the debt-laden country Wednesday that it will cut off its aid flow until a planned referendum is resolved.

Venizelos is opposed to his prime minister's decision to call a referendum on the October 26th agreement on restructuring Greek debt, according to CNBC sources in the Greek government.

He is eager to make sure that Greece stays within the euro zone.

German Chancellor Angela Merkel and French President Nicolas Sarkozy have warned Papandreou that he will not get another cent of aid until the situation over the referendum is resolved.

Venizelos, who was treated for stomach pains in hospital on Wednesday, returned home from the G20 summit in Cannes last night with Papandreou, and the flight home saw disagreements over the referendum flare up, according to reports in the Greek media.

The Greek prime minister will chair a meeting of ministers at 10 GMT today to discuss the growing crisis.

The finance minister described his trip to Cannes as a "national duty."

The market has been aware of the rift between Venizelos and Papandreou for a long time.

Page 1 of 3 | Next Page
Show Entire Article
Real-Time Quote
omniture pixel