Papandreou will likely propose a coalition government with Lucas Papademos, a former senior official at the European Central Bank, becoming the new Prime Minister.
Pressure mounted on Italy's besieged premier Silvio Berlusconi to quit Thursday as six former parliamentary loyalists called for a new government and the squabbling Cabinet failed to agree an urgent economic reform program.
China's people have a clear message for their government -- don't even think of saving Europe.
This means that an eight billion euro ($11 billion) payment will be in limbo until after the referendum vote – which isn't even scheduled to be held until December.
The Federal Reserve on Wednesday slashed its forecast for economic growth, raised projections for unemployment, and suggested Europe's debt crisis posed big downside risks to the U.S. economy.
If Greek voters reject the bailout via referendum, the country would likely plunge into bankruptcy.
India could consider supporting extra financing for the euro zone if European policymakers make a credible assessment of its solvency problems, Finance Minister Pranab Mukherjee told reporters.
Canada's central bank chief said on Tuesday he understands Greece's call for a referendum on the euro zone's latest bailout package, a plan that stunned other policymakers and triggered a downward spiral on global markets.
Underscoring the magnitude of the crisis, a virtual who’s-who of European political and financial elite will also join the emergency summit,
European stocks turned negative after early gains Wednesday, adding to a sharp two-session drop as investors dumped banking shares on fresh concerns about the euro zone debt crisis.
Greece's prime minister won the backing of his Cabinet Wednesday to hold a referendum on a 130 billion euro bailout package but will find the stunned euro zone leaders who engineered the deal last week harder to convince.
The glamorous and easy-going Riviera resort of Cannes turns into a fortified camp this week as French police prepare for the arrival of world leaders for a G20 summit set to be hijacked by fears that a euro zone crisis relief plan is unraveling.
World stocks and the euro edged up on Wednesday after a rollercoaster week, as investors hoped for comfort on the weak U.S. economy and troubled euro zone from meetings of the U.S. Federal Reserve and Group of Twenty leaders.
Difficult decisions must be taken swiftly to address economic challenges in Europe and elsewhere, Prime Minister Manmohan Singh said in a statement before leaving for the two-day Group of 20 leaders' summit in France starting on Thursday.
Greek Prime Minister George Papandreou fought off a barrage of criticism to win the backing of his Cabinet Wednesday to push ahead with a speedy referendum on the European debt bailout deal.
U.S. Senator Tom Harkin, D-Iowa, and U.S. Rep. Peter DeFazio, D-Ore., will introduce bills on Wednesday to impose a .03 percent transaction tax on trades of stocks and bonds
The Greek government faced possible collapse on Tuesday as ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation's euro membership into jeopardy with a shock call for a referendum.
Prime Minister George Papandreou's shock decision to call a referendum on Greece's bailout drew veiled threats from Germany on Tuesday and hammered markets edgy over the euro zone crisis.
Prime Minister George Papandreou's shock decision to call a referendum on Greece's bailout drew veiled threats from Germany on Tuesday and hammered markets edgy over the euro zone crisis.
The euro area is headed toward a sharp economic slowdown in 2012, with some countries set for negative growth, and failure to restore confidence in battered state finances could prompt a major contraction in developed countries, the OECD said on Monday.
Global unemployment now already exceeds 200 million, the highest level ever reported.
Oil prices eased on Monday, with Brent slipping below $110, as the dollar rose against the yen after Japan intervened in the currency markets to stem the rise of the yen.
