Greek government may collapse -- on Friday

The Greek government is on the verge of collapse. A gambit by Greek Prime Minister George Papandreou, to hold a vote on whether or not Greece should accept the European Union bailout package has the Prime Minister facing a confidence vote in parliament.

ATHENS, GREECE (Catholic Online) - Political experts warn that the vote will be very close, and that Papandreou may not survive as members of his own party are defecting in protest.
The vote is scheduled to proceed on Friday.

The Greek Prime Minister decided that he would put the option of whether or not to accept a European bailout plan for the troubled Greek economy to a referendum vote. His own cabinet ministers say that he did not consult them before making this decision. While critical of the move, the cabinet has expressed its support for the referendum.

Papandreou's goal is to bolster confidence increases participation in the euro zone. Papandreou told the people in a statement released by his office, "The referendum will be a clear mandate and a clear message in and outside Greece on our European course and participation in the euro. No one will be able to doubt Greece's course within the euro."

However, this move has shown itself to be unpopular in parliament. Six senior members of Greece's ruling party have already asked Papandreou to resign. Regardless of the outcome of the referendum, the Greek Prime Minister will now face a confidence vote on Friday.

Several of the Prime Minister's supporters have defected from him leaving his party with a two seat majority in the 300 strong parliament. Of the 152 supporters that remain, there is doubt that all of them will support the Prime Minister. If but a few vote against him, then the government will collapse and a new one will need to be hastily formed.

News of the great turmoil has driven down European and US markets. Investors are decidedly wary as the seesaw between bailout and collapse continues. European officials in both the political and financial sectors have worked tirelessly for months to prevent a Greek default from happening. And they have taken measures to insulate world markets in the event that a default occurs. However, those safety measures appear to be challenged by changing circumstances almost as quickly as they can be put down on paper.

It is evident that volatility in the European markets will not be ending anytime soon.

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