Greek PM vows to stay - but tomorrow is another day

THE FUTURE of Greek Prime Minister George Papandreou was hanging by a thread this evening after he delivered a rambling speech in which he refused to rule out a referendum on the recent euro bailout deal.

Extraordinarily, some commentators claimed that Papandreou only called a referendum in order to persuade the opposition to help him ratify the bailout deal, which will allow Greece to write off half of its debts and give the country €100bn.

This view was borne out by his remarks to parliament: "If we had a consensus we wouldn't have to go to a referendum. If the opposition is willing to negotiate then we are ready to ratify this deal and implement it."

It was left to Papandreou’s finance minister, Evangelos Venizelos - described by some as looking like the real man in control now - to go as far as he dared in calling off a referendum by telling parliament that “Greece must say that it is not holding the referendum".

Eurozone leaders have made it clear Greece will not receive any more money until they agree to the bailout deal.

Earlier, it was reported that the opposition leader Antonis Samaras had agreed to support the rescue package, raising hopes it would be ratified.

However, Papandreou faces a parliamentary vote of confidence tomorrow. Given he has a majority of two, and at least four of his own ministers are said to have urged him to resign today, he is by no means guaranteed to win. 

Writing in The Guardian before Papandreou addressed parliament, Vassilis Monastiriotis said it was clear that we were moving towards the end of the Papandreou era. But would the ratification of the bailout agreement and the introduction of an interim government calm either the economic or the political turmoil? No.

Should elections be called, “it is very unlikely they will bring into power a strong and stable government”. ·