The New York Times reported that following a chaotic day of political gamesmanship, Prime Minister George Papandreou cancelled his plan to hold a referendum on Greece's new loan deal with the European Union, remove his previous offers to resign and opened reconciliation talks with his conservative opponents.

In an address to his party's central committee on Thursday evening, he said there was no need for a referendum now that the opposition New Democracy party had said it would back the debt deal. He invited that party to become "co-negotiators" on the new deal.

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