Europe on the Brink as Greece Calls Off Referendum

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Greek Prime Minister George Papandreou arrives a parliament session on the confidence vote.
From and

In Cannes, leaders from the world's 20 largest economic nations are meeting to discuss the most pressing fiscal matters across the globe. On top of that list is Greece and the high-stakes political gamesmanship of the country's Prime Minister George Papandreou. Papandreou called off a plan to hold a referendum on his country's loan deal with the European Union Thursday after he gained new support for the deal from the opposition. Greece is in a tense political stalemate as its fate with the euro zone hangs in the balance. Papandreou is trying avoid a economic catastrophe as he faces calls for his resignation and a no-confidence vote on Friday. Papandreou's political brinkmanship has renewed questions about the instability of the euro zone and the destabilizing roles of deeply indebted countries.

Peter Spiegel, Brussels bureau chief for the Financial Times, explains more from Cannes. Also on the program is Lou Katsos, board member of the Hellenic-American Chamber of Commerce based in New York.