Greek PM Ready to Step Down - BBC

Greek Prime Minister George Papandreou smiles as he speaks to the press at the end of the emergency meeting in the new developments regarding the Greek financial crisis, one day before the start of the G-20 summit in Cannes, France. EPA/BGNES

Greek Prime Minister George Papandreou is expected to offer his resignation within the next hour, BBC reports Thursday, citing their own sources in Athens.

According to the British media, Papandreou is with Greek President Karolos Papoulias, where he went immediately after the conclusion of an emergency cabinet meeting.

He is expected to offer a coalition government, led by former Greek central banker and former vice president of the European Central Bank, Lucas Papademos, who enjoys the support and respect of a number of political parties.

The Greek government is on the brink of collapse after several ministers were adamant they would not support Papandreou's plan for a referendum on the EU bailout, which was set to give the heavily indebted Greek government EUR 130 B and a 50% write-off of its debts, in return for deeply unpopular austerity measures.

Top opposition leader Antonis Samaras, who heads the center-right New Democracy party called for a caretaker government and snap elections. He insists that the bailout, which was finalized on October 27, is to be passed by the current Parliament.

Papandreou had called a vote of confidence for Friday. His PASOK party has a slim majority with 152 out of 300 seats.

Amidst staggering disappointment from political parties, New Democracy is backed by 22% of the voters while PASOK is down to 14%.

Meanwhile, the G20 are holding an emergency in Cannes to discuss the Eurozone debt crisis.

Papandreou told reporters in Cannes his referendum would in effect be a vote on whether Greece should remain in the Eurozone.

But the European Commission counters that if Greece is to leave the European single currency, it would have to leave the European Union as well.

Earlier, the chairman of the group of Eurozone countries, Luxembourg's Jean-Claude Juncker, said plans were in place for a Greek exit from the Eurozone.

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