Europe warned of financial chaos over Greek debt crisis

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http://www.guardian.co.uk/world/2011/jun/15/europe-warned-greece-financial-crisis

The Greek government was on the brink of collapse after pitched battles on the streets of Athens on Wednesday, sending world stocks tumbling as EU leaders squabbled over whether and how to launch a second attempt to keep Greece from insolvency.

George Papandreou, the socialist prime minister, appeared to admit defeat by offering to dissolve his government and form a national unity coalition, but admitted his efforts to negotiate with the opposition conservatives had failed.

"Tomorrow I will form a new government, and then I will ask for a vote of confidence," Papandreou said on state television. The move followed intense but fruitless negotiations with the conservative New Democracy party to engineer a consensus behind the savage public spending cuts deemed necessary and a wholesale privatisation programme.

The opposition had called for Papandreou's resignation and a renegotiation of the bailout terms with the EU, the European Central Bank and the International Monetary Fund as the price for its assent to a national coalition.

[marmar]

1. Today Athens, tomorrow Albuquerque

nt

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2. i can't see how this doesn't spread.

some of our states & municipalities are in serious, serious trouble.

[marmar]

3. Yep.....and the so-called financial analysts know it......

..... even as they unconvincingly go on TV and insist the contagion won't spread.

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4. indeed. nt

[w4rma]

5. Papandreou doesn't sound very "socialist". He has been supporting austerity and privatization. (nt)