Greek PM scraps referendum on Greek debt plan

Athens: Ignoring increasing calls to step down, Greece's prime minister says he is seeking emergency talks with the Opposition and warns that an early election would force Greece into leaving the euro currency.

Prime Minister George Papandreou made the comments in an emergency Cabinet meeting on Thursday. His office released his speech to the ministers.

Papandreou sparked a crisis when he announced on Monday he would put a European debt deal to a referendum in Greece. Two officials close to him say the referendum idea has now been scrapped, after the Opposition indicated they backed the new bailout deal to cut Greece's debts.