(CNN) -- Greece Prime Minister George Papandreou announced Monday a national referendum to approve the bail-out deal reached at last week's EU summit.
The surprise move casts a shadow on the deal brokered that would allow as much as 50% of the nation's loan payments be reduced in exchange for new $138 billion in aid to finance Greece's ballooning debt.
No date has been set on the vote, although local press reports say the referendum could come in January. A "no" vote threatens to unravel the deal, which was greeted with fanfare last week as way to keep debt woes in Greece and other European nations from spilling across other borders,...
threatening the 17 nations united under the euro currency.
A weekend survey in Greece found nearly 60% opposed the debt deal reached in Brussels last week.
"Clearly opens a can of worms because the referendum vote could go one of two ways," said Frederic Neumann, a senior economist for HSBC.
"If approved, a vote of confidence in government's handling of the situation ... if calmer heads prevail and it can rationally be explained to the public, I wouldn't discount the measure being approved.
"The problems for the markets, until the referendum is passed, there is added uncertainty. That's just an added headache."
Besides the Greek debt reduction plan, last week's EU deal pledged to quadruple the EU's bailout fund to about $1.38 trillion and raise the capital required to help cushion the region's banks from financial shocks.
Pandandreou also asked for a vote of confidence this week in his beleaguered ruling Socialist party government.
"The new measures must be approved by parliament and the Greek people," Finance Minister Evangelos Venizelos said on Greek television.
The referendum will ask for a "yes or no to the new aid package.
"The country is living a drama," Venizelos said. "Citizens are confused ... that is why the referendum is necessary."
By Kevin Voigt and Elinda Labropoulou, CNN
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