Greek cabinet supports call for referendum on bailout

 
Athens, Greece (CNN) -- Greece's cabinet voted Wednesday to support Prime Minister George Papandreou's call for a referendum as soon as possible on the latest bailout plan, as Europe's stock markets watched anxiously to see what might happen next.
The vote was unanimous, though some of the ministers expressed criticism prior to casting their votes, CNN affiliate Mega Channel reported.
The cabinet vote came hours before German Chancellor Angela Merkel, French President Nicolas Sarkozy and senior figures from the International Monetary Fund and European Union were to meet Wednesday with Greek officials at an emergency meeting in Cannes, France, ahead of the G-20 summit.
German and French markets rallied slightly Wednesday after tumbling Tuesday on the news of the referendum call, while London's FTSE remained fairly flat as of midday trading. The Dow Jones Industrial Average index opened slightly higher W
"It jeopardizes the efforts and the painful sacrifices that are made by the Greek people," she told CNN Wednesday.
"It would set high risk on the European perspective of the country and also divides the nation, and that's why I believe in these extremely difficult days we only have to contain the crisis and to make all the sacrifices of the Greek people worthwhile. That must be the one and only priority."
The prime minister has called a confidence vote, separate to the referendum on the bailout deal, for Friday.
Sarkozy and Merkel issued a terse statement on Tuesday saying they were "determined to ensure the full implementation, without delay, of decisions adopted by the summit, which are necessary now more than ever."
White House spokesman Jay Carney struck a similar note, saying Papandreou's move reinforced the need for Europe "to elaborate further and implement rapidly the decisions they made last week."
Greece's former deputy finance minister, Petros Doukas, a member of the opposition New Democracy Party who is not currently in office, told CNN he doubted the referendum would take place.
Papandreou is under enormous pressure from Europe, the markets and opposition forces within Greece to backtrack on the proposal, Doukas said.
ednesday.'

Papandreou is seeking public backing from the Greek people for last week's bailout deal, which took months to reach.
But the move created turmoil in domestic politics and angered his European counterparts.
A "no" vote could theoretically force Greece to crash out of the euro and send shock waves through the global financial system.
Greek Foreign Minister Stavros Lambridinis told CNN he was confident the Greek people would vote "yes," and that they were "fanatic supporters" of Europe.
"Everyone is getting a bit tired of doubting the wisdom of the Greek people and their commitment to Europe," he said, adding that Greece had proven its dedication in the painful measures it has already taken.
Lambridinis said he hoped the referendum would take place as soon as the details of the bailout deal agreed to last week were finalized.
Several of the most senior military leaders in Greece, meanwhile, have been replaced.
The Government Council for Foreign Affairs and Defense, which Papandreou chairs, decided on "sweeping changes in the armed forces' leadership" on Tuesday, the Athens News Agency reported. The council replaced the general staff chiefs for the Greek Army, Navy and Air Force, the news agency said.
The news agency did not cite a reason for the changes.
The deal reached last week would see the country's sky-high debts cut in half, but it comes with strings attached, which have led to angry demonstrations in the streets of Greece.
The announcement of the referendum rattled Papandreou's hold on power, as a lawmaker defected from his party, leaving him with a majority of only two in Parliament.
Milena Apostolaki, who was an influential figure in the party, said Papandreou had made "an erroneous political decision" in calling for the referendum.