Malta respects Greece’s “legitimate right” to consult its people on the bailout package approved by EU leaders but hopes that Greeks understand the importance of making more sacrifices.

Finance Minister Tonio Fenech said yesterday that the package was essential for Greece to regain stability and begin the road to prosperity, employment creation and economic activity.

“Obviously the government respects the right of another sovereign government, when making such an important decision that will require an element of sacrifice from the Greek population, to seek public consultation. But my hope is that the Greek population understands the importance of this decision.”

Although the Greek people are being asked to make more sacrifices, Mr Fenech said this was, at the end of the day, in their and their country’s interests to ensure that Greece stops sinking and gets back on the road to prosperity.

The Greek Cabinet yesterday unanimously approved Prime Minister George Papandreou’s surprise decision to call for a referendum on a hard-won European plan to rescue the Greek economy.

World markets were hammered across the world after Mr Papandreou’s surprise Monday night announcement amid fears the vote could unravel a deal which took European leaders months of complex negotiations among themselves and with banks to reach.