CANNES, France — Greece will hold a controversial referendum on a European bailout plan in early December that European leaders said Wednesday will determine whether it stays in the eurozone.
Greece won’t get any new international loans until then, European leaders said after heaping pressure on Greece’s prime minister at emergency talks Wednesday.
“The referendum . . . in essence is about nothing else but the question, does Greece want to stay in the eurozone, yes or no?” German Chancellor Angela Merkel said at a news conference.
The statement, echoed by French President Nicolas Sarkozy, who was at her side, was the clearest acknowledgment to date that pulling out of the eurozone is a possible outcome.
After a meeting with Greek Prime Minister George Papandreou and other European leaders in the French city of Cannes, Luxembourg Prime Minister Jean-Claude Juncker announced that the referendum would be held Dec. 4. Sarkozy said the vote would be Dec. 4 or 5.
Sarkozy said the next installment of Greek rescue loans, which had already been approved and were due to be paid in November, cannot be paid until after the referendum.
“We want to continue with the Greeks but there are rules and it’s unacceptable that these rules are not followed,” Sarkozy said.
The chief of the International Monetary Fund, Christine Lagarde, said, “I hope that this whole thing can be closed and completed by mid-December — I think it’s important from a cash point of view.”
