3 Nov 2011

An extraordinary day of Greek political chaos

Athens: 21.35

Total political bedlam here in Greece, as Papandreou planned to resign, stopped after a “deal” with the opposition leader, gave a speech which saw two cabinet ministers walk out.

And then, just when we thought things had stabilised, up popped the Opposition leader to deliver a brutal riposte accusing the “liar” Papandreou of treachery, and endangering Greece, and asking for him to stand down.

Samaras, the leader of New Democracy wants a caretaker government – in which his party will not participate – to handle a transition to elections in weeks.

It’s difficult to see how Papandreou gets past the confidence vote given his internal Pasok problems. And yes, the markets were cheered by the news that the referendum was off the table.

But have they seen Greek polls suggesting a multi-party coalition led by Samaras who has spent two years warning that he wants to renegotiate the EU bailout deal?

Extraordinary day, and it’s not over yet. Confidence vote still scheduled for midnight tomorrow.