Uncertainty in Greece raised fresh fears that the single currency crisis will spread. European stock markets plunged and the Italian government’s borrowing costs hit record highs as investors warned that efforts to save the euro were “unravelling”.Oh, and socialism doesn't work. Thought I'd point that out.
George Papandreou, the Greek prime minister, faced calls by members of his own government to step down amid fears that Greeks will vote against the bail-out package and the deep cuts in public spending its sponsors are demanding. As Greek politics grew ever more chaotic, there were strong political protests as the government moved to replace military chiefs with officers seen as more supportive of Mr Papandreou.
A No vote could mean Greece is forced to withdraw from the single currency, raising doubts about the euro’s value and wiping trillions off the value of shares and loans across the continent.
The renewed global turmoil overshadowed the release of better than expected economic figures in Britain. The economy grew by 0.5 per cent over the summer, almost double the increase expected by economists. Growth is expected to slow and possibly even slip back into recession because of the eurozone crisis.