Papandreou: "I will not resign," says BBC


Greek Prime MInister George Papandreou addressing the Greek parliament. His call for a referendum has rattled world markets and angered opposition politicians



Greek Prime Minister George Papandreou has insisted that he will not resign in spite of mounting pressure for a new unity government in Greece, reported the BBC

In a widely-cited article, the BBC had previously indicated that "sources in Athens" said Papandreou would resign immediately after an emergency cabinet meeting today. The article stated that Greek President Kalos Papoulios would then form a coalition government, and former central banker Lucas Papdemos would take the helm.  

The president's press office has also confirmed that there are no planned meetings between Papandreou and the president. 

Papandreou had scheduled a vote of confidence to take place on Friday, amid calling for a referendum and the defection of several cabinet members. He faced backlash from the EU earlier this week over the referendum on the debt-rescue plan. The referendum, said Papandreou, would be a vote on whether Greece should remain on the euro, but EU leaders said that leaving the euro would mean that Greece would have to leave the euro zone completely.  

Mark Lowen, BBC correspondent in Athens, reported that while there was speculation that Papandreou had intended to speak with the president to offer his resignation, the plan appears to be in doubt. 

Meanwhile, Reuters reported that there will be no referendum if major political parties agree.  

UPDATE: The Guardian is now reporting that the referendum has been cancelled.

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