By Angelika Papamiltiadou

ATHENS (MNI) – Greece’s Finance Minister Evangelos Venizelos,
taking a higher profile in domestic politics, held telephone
conversations Friday with three senior European officials to brief them
on the government’s decision to cancel a controversial referendum and on
other political developments in the country ahead of tonight’s crucial
confidence vote in Parliament.

In talks with Eurogroup President Jean-Claude Juncker, Europe’s
Economic and Monetary Affairs Commissioner Olli Rehn and German Finance
Minister Wolfgang Schaeuble, Venizelos explained a 10-plan he had
announced in Parliament Thursday night.

He said the objective is to win the confidence vote in order to
forge a broader political consensus as a prelude to a coalition
government.

Venizelos told the three men he wants to ensure implementation of
the new bailout plan for Greece agreed at the Eurozone leaders’ summit
on October 27 and secure Greece’s position within the Eurozone, while
respecting the sacrifices of the Greek people.

He said it was important ahead of next Monday’s Eurogroup meeting
for Greece to have credible political representation, in order to ensure
timely disbursement of a key E8 billion loan tranche and to continue
negotiations for the new bailout plan, a 50% writedown on privately held
Greek debt, which he said should be concluded by February 2012.

Following his speech to parliament Thursday evening, it is clear
that Venizelos favors a coalition government with a broader consensus,
embracing as many parties as possible. His idea is to conclude
negotiations with the EU as quickly as possible, leading to early
national elections by March 2012.

It is also clear that Venizelos was the one who ended the confusion
surrounding the now-cancelled referendum, since up to the last minute
Prime Minister George Papandreou had refused to say explicitly that he
was annulling the planned plebiscite.

Several Greek government officials told Market News International
that Venizelos was among the party members who had sought an agreement
from Papandreou to step down quietly after the confidence vote in
exchange for a promise by party members not to vote against him.

The uncertainty surrounding the on and off-again referendum has led
the EU to suspend its approval of an E8 billion loan tranche that Greece
will need by mid-December if it is avoid running out of cash. The IMF
has yet to approve its E2.2 billion share of that tranche, and the
Fund’s chief Christine Lagarde has said approval would have to await for
similar reasons.

Even if he wins the confidence vote, it is extremely unlikely
Papandreou would be able to form a coalition government. In fact, given
the way his own party members are leaning, it seems increasingly likely
he will step down after the vote win or lose.

–Angelika Papamiltiadou, a_papamiltiadou@hotmail.com

[TOPICS: M$X$$$,M$Y$$$,MGX$$$,M$$CR$,MT$$$$]