Greek finance minister slams referendum plan

Greece’s finance minister is breaking ranks with prime minister George Papandreou over his call to hold a referendum on a hard-fought European debt deal to rescue the country’s economy.

Evangelos Venizelos issued a written statement today on returning from an emergency meeting in Cannes, France, where he accompanied prime minister George Papandreou for meetings with top European officials.

After the meeting, the French and Germany leaders said a Greek vote would decide whether the country stays in the eurozone, and vowed Athens would not get critical bailout funds until after the vote.

Mr Venizelos said Greece’s position within the euro was a “historic conquest” of the country that “cannot be put in doubt” and “cannot depend on a referendum”.

Meanwhile, France and Germany have given Greece an ultimatum - accept the bailout deal or leave the eurozone.

Greece is expected to hold its referendum on December 4. It will not receive another cash injection from the EU and IMF until the result is known.

Mr Papandreou said he was confident, despite widespread and sometimes violent protests at austerity measures, that the Greek people would vote in favour of the bailout.

"I believe the Greek people want us to be a strong partner in Europe and that this is at stake," he said.