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Monday, May 11, 2015

Germany, in shift, says Greek referendum on reform could help

By Renee Maltezou and Paul Taylor BRUSSELS (Reuters) - EU paymaster Germany said on Monday it could make sense for Greece to hold a referendum on painful economic reforms under negotiation with its creditors, changing tack as Berlin's own lawmakers bridle at further aid for Athens. Euro zone governments have previously opposed such a vote, saying there is no time and it could destabilise financial markets and trigger a run on struggling Greek banks. When former Prime Minister George Papandreou surprised EU partners by proposing a referendum in 2011 at the height of the euro zone debt crisis, he was summoned to emergency talks with leaders of France and Germany and told bluntly to drop the idea. A referendum could make it easier for leftist Greek Prime Minister Alexis Tsipras to climb down on election promises that are making a deal on economic reforms hard to achieve.


READ THE ORIGINAL POST AT uk.news.yahoo.com