Greece Leader Faces Revolt on Bailout Mess

After Greece’s prime minister shocked the world—and his own finance minister—by announcing a public referendum on the EU bailout, the government has entered crisis mode. As leaders hold emergency talks, six members of George Papandreou’s party have called for his resignation, and one has quit, leaving his party’s majority at two, the BBC reports. The opposition party wants an election, while a top MP from Papandreou’s party wants to form a unity “government of national salvation,” to be followed by elections.

“In order to save himself, Mr Papandreou has posed a dilemma of blackmail that puts our future and our position in Europe in danger,” the opposition leader says. Papandreou will meet with Angela Merkel and Nicolas Sarkozy tomorrow on the sidelines of the G20 summit. He says the referendum is needed in order to put austerity measures in place. The New York Times warns that Friday’s planned confidence vote could lead to a government collapse, ending hopes for a bailout and ultimately prompting a default and the end of the euro in Greece. Click for more. (More Greece stories.)