Angela Merkel calls for Greek referendum on euro ...

By Damien McElroy, in Athens

German leader Angela Merkel last night called for Greece to determine its European future once and for all by holding a referendum on its euro membership alongside next month's general election.
The surprise suggestion, made in a phone call with Greek President Carolos Papoulias, was immediately rejected. "It is clear that the matter is beyond the competence of the caretaker government," the office of Prime Minister Panagiotis Pikrammenos said.

It claimed the German leader "conveyed thoughts on holding a referendum alongside the election, on the question of whether Greek citizens wish to remain in the eurozone".

A spokesman for Ms Merkel dismissed the claims. "This is false and we completely dismiss this," he said.

Ms Merkel had previously rejected the idea of a referendum when it was proposed in October by George Papandreou, the former prime minister. The new government, named this week, was formed only to organise elections on June 17.

The German leader's move came as Lucas Papademos, the former technocratic prime minister who succeeded Mr Papandreou, on Friday said a rejection of austerity measures and of the eurozone bail-out in the election would be a "catastrophe" for the country. 

telegraph.co.uk