Papandreou calls referendum on Brussels deal

Prime Minister George Papandreou called a referendum on a new EU aid package on Monday and announced that he would ask for a vote of confidence to secure support for his policy for the remainder of his four-year term, which expires in 2013.   "We trust citizens, we believe in their judgment, we believe in their decision," he told Pasok MPs.   Eurozone leaders agreed last week a second, 130bn euro bailout for the cash-strapped country as well as a 50-percent write-down on its crippling debt to make it sustainable.   Speaking to his ruling PASOK party's parliamentary group on Monday afternoon, Papandreou said it was "the time for the citizens to reply responsibly. Do they want us to implement it or reject it? If the people do not want it, then it shall not be implemented. If yes, we shall proceed ... we never resigned from our responsibilities."   The referendum will be held in a few weeks, after the agreement is finalised, Papandreou said.   Nearly 60 percent of Greeks view the EU summit agreement of October 27 on the new bailout package as negative or probably negative, a survey showed on Saturday.   Repeated austerity measures to qualify for bailout payments under a first bailout agreement last year has led to several defections from Papandreou's Pasok party, which trails in opinion polls.   The prime minister also replied to criticism being experienced by the government. "The bigger debts bring bigger austerity," he said and spoke of a "systematic effort of disinformation by certain media and political parties."   "All the political forces should give support and the citizens as soon as they are informed correctly," Papandreou said.   Moreover, in a bid to dampen growing calls for a snap election, Papandreou said his government's mandate lasts for another two years, which was time it would use to implement its commitments.   He reiterated that the budget would contribute to the recapitalisation of the banks, which "if it is necessary, they should be nationalised, become state-owned".   The prime minister added that the agreement removes insecurity from the country and "confirms our position in the tough nucleus of the euro", adding that the agreement means a reduction of debt and 4.5bn euros less in interest payments every year.   "The bigger debts bring bigger austerity," he said, before referring to a "systematic effort of disinformation by certain media and political parties ... All political forces should give support and the citizens as soon as they are informed correctly."   Briefing his MPs on the decisions taken at last week's EU summit, Papandreou described them as "historic" and stressed that nothing would have been decided if the Pasok parliamentary group had not taken the "historic decisions" in voting for the omnibus bill two weeks ago.   "It defended the national interest," he said.   "We are not rejoicing and we are not complacent over the important decisions of the summit of the European leaders," said Pasok's parliamentary group secretary Vassilis Exarchos at the beginning of the meeting. He also announced that the parliamentary group will be convening again soon for deputies to state their case as well.   Confidence vote   Regarding what he referred to as a "road map" of his political initiatives, the prime minister added that he will seek a vote of confidence from parliament, with the debate to being on Wednesday.   The procedure will conclude on Friday at midnight via an open roll-call vote.   Referendum timeline   The referendum is likely to be held in January, the finance minister told a private television station.   Evangelos Venizelos said the referendum will be held after the finalisation of the loan agreement's details and completion of the exchange of the Greek bonds (PSI).   He added that the electorate will be called on to reply with a "yes" or a "no" on the law that will ratify the new loan contract .   Rejecting early elections, Venizelos said, however, that if the government proposal is rejected at a  referendum, then "the country must be led to other developments", adding that "elections will take place sooner or later".   Opposition reactions   Papandreou's announcement has led main opposition New Democracy (ND) leader Antonis Samaras to request a meeting with President Karolos Papoulias.    Later, party spokesman Yiannis Michelakis termed the prime minister's proposal as no less than a "constitutional and democratic deviation", one that jeopardised the country's greatest achievement, namely, accession to the European Union.   Michelakis, who repeated his party's call for immediate elections, charged that Papandreou chose the referendum option because after he failed to "make ND an accomplice, now he wants to make the Greek people an accomplice" in the agreement.   The country's third party, the Communist Party of Greece (KKE), said an statement that the prime minister's announcement for a referendum "means that a huge coercion mechanism of the people is being set up, where the government and the EU will use all the means, the threats, the provocation to bring the working class and the popular classes to their knees, to secure a 'yes' for the new agreement."    "The working class and the popular classes must force elections and welcome them with mass mobilisations all over the ccountry. With their action and vote they must deal a strong blow to the bourgeois political system, to pave the way for the reversal of the antipopular policy [and] the authority of the monopolies," the statement concluded.   Popular Orthodox Rally (Laos), in an announcement, described the referendum announcement as an "adventurist policy". It also "dared" Papandreou to hold a secret ballot of MPs for the vote of confidence.   The Radical Left Coalition (Syriza) parliamentary leader Alexis Tsipras said the referendum was a "trick" on the part of the government to "gain time in power". He repeated his call a call for snap elections on the basis of proportional representational.   Brussels   In Brussels, a European Union spokeswoman said that she had "no comment" to make on the referendum proposal or the Papandreou's intention to seek a vote of confidence. "We are in contacts and we are waiting for an official briefing from the Greek authorities," Karolina Kottova said.