The Greek prime minister has scrapped his plan to hold a referendum on the latest European debt deal for Greece, according to two of his officials.

They said George Papandreou made the comments during an emergency Cabinet meeting in Athens today.

They said his decision came after the main opposition leader said he would back it.

One also said the premier would not resign despite mounting pressure, and would await the outcome of Friday's confidence vote in his government.

The officials asked not to be named.

Early election would force Greece into leaving the euro

Mr Papandreou says he is seeking emergency talks with the opposition and warns that an early election would force Greece into leaving the euro.

He made the comments in the Cabinet meeting. His office released his speech to the ministers.

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