Greek PM Scraps Referendum On Greek Debt Plan

The Greek prime minister has rejected pressure to resign, warning that early elections would lead to an exit from the euro, and says instead he is seeking talks with the opposition conservatives.

Two officials close to Prime Minister George Papandreou also say he has scrapped his plan to hold a referendum on the latest European debt deal for Greece after the main opposition leader said would back it.

They said Papandreou made the comments during an emergency Cabinet meeting Thursday. One also said the premier would not resign despite mounting pressure, and would await the outcome of Friday's confidence vote in his government.

They spoke on condition of anonymity to disclose talks in the Cabinet meeting, being held in Parliament.