The economic and social mayhem gripping Europe's peripheries appeared to have claimed the scalp of another government after the Greek prime minister admitted he could not drive through reforms to shore up the beleaguered economy, and offered to make way for a government of national unity.
After a day on which tens of thousands marched on parliament to oppose the swingeing austerity measures designed to stave off bankruptcy, George Papandreou effectively conceded that he had not been able to muster enough support in parliament for the swingeing cuts required by international creditors to enable Greece to balance its books.
Emerging from intense negotiations with his conservative opposite number, Antonis Samaras, Papandreou said that his bid to create a unity government of broad acceptance had failed.
Catching even his own cabinet ministers off guard, the US-born leader had offered to step down if his political opponent accepted further cost-cutting measures.
"I will form a new government and seek a vote of confidence," the prime minister said in an address to the nation following the talks. » | Helena Smith in Athens and agencies | Wednesday, June 15, 2011
