Greece's Prime Minister George Papandreou arrives at a news conference at the end of a euro zone summit in Brussels
Greece's Prime Minister George Papandreou said the government will hold a referendum on the new EU bailout pact. Reuters

Greece’s government will hold a referendum whereby voters will vote or whether they want to accept a new financial aid package from the European Union (EU) or nor, Prime Minister George Papandreou announced on Monday.

We trust citizens, we believe in their judgment, we believe in their decision, Papandreou reportedly said to a group of ruling Socialist party politicians in Athens,

Papandreou said he will also hold a vote of no-confidence on the finance deal, although no dates have been set.

He also told Agence France Presse: The command of the Greek people will bind us.”

However, Reuters reports that almost 60 percent of Greeks view the new EU agreement providing for a new bailout package as “negative” or “probably negative”, according to a survey taken Saturday by a Greek newspaper.

A summit of Eurozone leaders in Brussels last week led to an agreement under which private holders of Greek debt would have to accept a 50 percent loss; the Euro nations also agreed to provide Athens with another 100 billion euro ($140 billion) loan

Meanwhile, Greece has been in turmoil over massive government austerity measures, including drastic job cuts, spending reductions and pension freezes. Unions have called for nationwide strikes, while demonstrators have battled police on the streets.