Greek PM ready to withdraw referendum plan

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The Greek prime minister has announced he is prepared to drop the idea of a referendum on a vital bailout package and hold talks with the opposition to resolve the country's political and economic crisis.

In a speech to his cabinet on Thursday, George Papandreou said he would assign the task of discussions with the opposition to two senior party members and praised their support of the bailout deal.

If the opposition agreed to back the deal in parliament no referendum would have to be held

Al Jazeera Jonah Hull explains