FINANCIAL TIMES: European leaders are racing to save the latest rescue plan for the eurozone after financial markets reeled on Tuesday on fears that Greece’s proposal to hold a referendum on its second bail-out package could lead to a disorderly default by Athens.
Reacting with scarcely disguised anger to Athens’ unexpected move, Angela Merkel, Germany’s chancellor, and Nicolas Sarkozy, France’s president, summoned George Papandreou, Greek prime minister, to emergency talks in Cannes on Wednesday with Christine Lagarde, managing director of the International Monetary Fund, and the heads of the leading European institutions, to buttress the eurozone’s position on the eve of the G20 summit of world economies…
The meeting in Cannes was called as Mr Papandreou’s grip on power appeared to be slipping, with his Socialist party on the brink of revolt over his proposal to hold a referendum on the financial deal… (more)
