November 3, 2011
Chaos over Greece's role in the euro zone swept financial markets on Thursday with early losses in stocks and the euro turning to gains on hopes Athens might ditch its referendum plans.
The threat of a Greek exit from the euro hung over a meeting of G20 leaders after France and Germany made it clear that Athens must decide urgently whether it wants to stay in the 12-year-old currency bloc.
Greek Prime Minister George Papandreou was under the gun, losing support within his own party, after calling for a referendum which will test his highly-indebted country's resolve to stay in the currency bloc.
Speculation was rising that there would be an election rather than a referendum.
"People are thinking Papandreou's government falls and therefore the referendum is postponed, but it's obviously wishful thinking because it doesn't fix any issues," said one trader at a European investment bank.
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