Grexit no longer represents the potential catastrophe that it once did. After all, the main short-term cost has already materialised, writes Daniel Gros.

Greek prime minister Alexis Tsipras’s plan to hold a referendum tomorrow on creditors’ demands for austerity has prompted a breakdown in talks with lenders, forced Greece to shut banks, and left its future in the eurozone in doubt.

German Chancellor Angela Merkel will tell Greeks she wants to keep their country in the euro when she visits Athens tomorrow, but she faces a hostile reception from a people worn down by years of austerity and recession.

Greek prime minister Antonis Samaras, who will take his plea for more time for the Greek economy to Paris and Berlin this week, has suggested his government could sell or lease some of the country’s islands to help revive a state-asset sales plan central to receiving international funds.

Former Greek Prime Minister George Papandreou has said it would catastrophic if Greece were to exit the euro currency.

THE EU is a voluntary quasi-federation of sovereign and democratic states in which elections matter and each country seeks to determine its own destiny, regardless of the wishes of its partners.

THE hubris of Communication Minister Pat Rabbitte, who recently lambasted the quality of political journalism in this country, would be a lot easier to take seriously if the nation hadn’t been lumbered with such a headline-grabbing array of greedy and grasping incompetents in Leinster House for at least the last 30 years.

Eamon Gilmore insisted Ireland was on track to exit its bailout programme by the end of next year, despite claims by Fianna Fáil that the country was likely to need a second financial rescue package.

Greeks angered by a vicious and protracted financial crisis punished their two main parties in national elections Sunday, with exit polls projecting them both haemorrhaging support and no party gaining enough votes to form a government.

Greeks head to the polls on Sunday in their most critical – and uncertain - election in decades, with voters set to punish the two main parties that are being held responsible for the country’s dire economic straits.

‘Politics beyond borders’ will become a global necessity, writes Kemal Dervis

The news their country is likely to avoid defaulting on its debts next month and the euro should remain their currency has been greeted uneasily by Greeks.

A crucial meeting between Greece’s prime minister and debt inspectors on averting the country’s bankruptcy has just ended with no definite results.

With the eyes of an impatient Europe on them, Greece’s feuding leaders are united by a desire to avoid blame for the harsh austerity required to save their country from a catastrophic default.

Crisis talks on a debt deal for Greece will continue today after a five-hour meeting between the prime minister and coalition government party leaders failed to reach agreement.

Crisis talks in Greece for huge new debt deals will continue tomorrow, leaders of parties supporting the country’s coalition government have said .

Greek Prime Minister Lucas Papademos says he has the backing of leaders from the three political parties supporting his interim government, as international creditors increase the pressure on Greece to make deeper spending cuts to secure new funding.

Greece has always looked at its classical age as a usable past but there is no solace in the classics to inspire the country out of its financial and economic woes. What Greece needs is a cultural revolution, writes Fouad Ajami

GREECE’s creditors failed on Saturday to persuade the leader of the main conservative party to drop his refusal to sign a pledge that he will back austerity measures under a bailout deal aimed at saving the country from financial ruin.

WITH the eurozone close to the cliff’s edge, elected politicians are giving way to the technocrats, or else being forced to kowtow to them.

“WE require a head — yours or Harry’s”.

MANY a pub debate on Ireland’s economic woes has begun with the proposition that none of it would have happened if economist David McWilliams had had a seat at cabinet, or that we would recover quicker if Michael O’Leary was plucked from Ryanair and made minister for finance.

GERMAN Chancellor Angela Merkel said yesterday that Europe could be living through its toughest hour since WWII as new leaders in Italy and Greece rushed to form governments and limit the damage from the eurozone debt crisis.

THE prospect of technocrat-led governments in both Greece and Italy calmed markets but volatility is expected to return next week as both regimes attempt to push through austerity measures.

SENIOR banker Lucas Papademos has been named prime minister of the new Greek interim government, charged with keeping the debt-ridden country out of bankruptcy and in the eurozone.

Senior banker Lucas Papademos was today appointed prime minister of an interim Greek unity government that seeks to cement a European debt deal and stave off national bankruptcy.

Greece named former bank chief Lucas Papademos as its new Prime Minister today after four days of power-sharing talks.

Former European Central Bank vice-president Lucas Papademos was officially named new Prime Minister of Greece today.

Former European Central Bank vice-president Lucas Papademos today joined Greek political leaders at power-sharing talks to form a new government, in a strong indication that he is being lined up to be the country’s new prime minister.

A DEAL on forming a Greek national unity government collapsed last night as the country headed towards an economic abyss, hours after outgoing prime minister George Papandreou said he was handing over to a coalition that does not exist.

Greece’s critical power-sharing talks have hit a significant hurdle, with political leaders leaving a top-level meeting without naming a new Prime Minister to take over from George Papandreou.

Financial markets pounded Italy today amid worries that premier Silvio Berlusconi would linger in office and delay reforms.

Greek Prime Minister George Papandreou has confirmed a new interim government will seek to defend Greece’s debt deal and the country’s place in the euro.

Greek Prime Minister George Papandreou has said an agreement has been reached on forming an interim government in Greece.

Pressure mounted on Greece’s two main political parties today to wrap up three days of power-sharing talks and name a new prime minister.

A new Greek interim government will be announced this afternoon, a government official said, after critical power-sharing talks between the country’s two parties dragged into a third day.

GREEK party leaders laboured yesterday to agree on a new prime minister, with the nation and the EU clamouring for a deal on a unity coalition to save the country’s finances and end the chaos threatening the euro.

Greece can and will carry out austerity measures and “reconstruct the country”, finance minister Evangelos Venizelos said today.

The European Commission has said Greece must provide "clarity" about its political and economic situation before it can get any new bailout aid.

Investors fled from the markets today as Italy’s borrowing costs surged into “bailout territory” and thrust the country into the heart of the eurozone debt crisis.

Greece’s embattled prime minister and main opposition leader agreed to form an interim government to ensure the country’s new European debt deal, capping a week of political turmoil that saw Greece face a catastrophic default that threatened its euro membership and rocked international markets.

GREECE’S prime minister and the leader of the main opposition party last night reached initial agreement on forming an interim government.

GREEK Prime Minister George Papandreou agreed to step down as premier to allow the creation of a national unity government that will secure international financing for the country and avert a default.

Greece’s embattled prime minister and the head of the main opposition party reached an initial agreement tonight to form an interim government that will ensure the country’s new European debt deal and then lead Greece to early elections, the president’s office said.

Ministers say Greece’s embattled prime minister is waiting for the country’s president to host a meeting between him and the head of the opposition.

Talks are under way on the formation of a temporary coalition government in Greece to ensure the country does not go bankrupt in the next few weeks, a spokesman for the ruling administration has claimed.

Greece’s conservative opposition leader has insisted on his demand for immediate elections, snubbing a government offer to form a power-sharing coalition and extending a political deadlock in the debt-shackled country.

Embattled Greek prime minister George Papandreou is now preparing to start talks to try to form a four-month coalition government, aimed at securing continued rescue funds for the near-bankrupt eurozone country.

Greek prime minister George Papandreou survived a confidence vote, calming a vicious revolt in his Socialist party with an emotional pledge to step aside if necessary and seek a cross-party government lasting four months to safeguard a new European debt agreement.

THE euro remained on a slippery slope last night as the EU failed to convince world leaders at the G20 summit to step in to shore up the currency.