Greek government faces collapse

Greek Prime Minister George Papandreou is expected to resign after turmoil arose amongst members of his ruling PASOK socialist party over a surprise 130 billion euro bailout referendum.

Greek Prime Minister George Papandreou is expected to resign after turmoil arose amongst members of his ruling PASOK socialist party over a surprise 130 billion euro bailout referendum.

According to the BBC, should Papandreou step down, former Greek central banker Lucas Papademos will head a coalition government in his place.

Papandreou's referendum is an attempt to save Greece from bankruptcy and prevent a global financial meltdown.

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