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.

THE news that the German Bundestag got to examine the details of our budget before we got to hear the delectable details did not surprise me in the slightest.

Greece's new technocrat Prime Minister Lucas Papademos assumed power today at the helm of an interim coalition government that will seek to push through tough economic reforms and ensure the country avoids a catastrophic default.

Greece’s incoming prime minister is to name his Cabinet today, a day after being appointed to head an interim coalition government which will push through a new European debt deal and secure continued bailout funding to prevent a catastrophic default.

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.

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.

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.

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

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.

THE Greek Prime Minister entered the political twilight zone last week when he stunned colleagues with his announcement of a referendum on the revised bailout deal for Greece.

Greece’s prime minister has survived a confidence vote in parliament, calming a revolt in his Socialist party with a pledge to seek an interim government that would secure a vital new European debt deal

Greece’s ruling Socialists were in open revolt against their own prime minister ahead of a crucial confidence vote tonight.

Britain will not “go out on a limb” in pumping extra cash into the International Monetary Fund to help restore the health of the global economy, Chancellor George Osborne said today as world leaders debated the crisis amid continuing turmoil in Greece.

Greek Prime Minister George Papandreou is facing a crucial confidence vote in parliament today a day after he backed down from his bid to put a new European debt deal to a referendum.

ALL eyes will be on Athens this evening as politicians warn that the future of the country is at stake and the health of other eurozone countries is in danger.

ATHENS is likely to form a new government today following the U-turn by the prime minister when he reversed his shock decision to hold a referendum on his country’s bailout package.

IT may well be remembered as the day the eurozone began to break apart.

JUST when we were starting to believe that things couldn’t possibly get any more uncertain, and on the contrary, that the most recent Greek deal and euro rescue plan were starting to throw up some light on the horizon, the whole world has gone crazy once again.

London’s leading shares index pushed higher today amid hope that Greek prime minister George Papandreou would drop his plans to hold a referendum on the eurozone rescue deal.

Greece’s prime minister has abandoned his explosive plan to put a European rescue deal to a referendum.

The Greek prime minister today dramatically scrapped plans for a referendum on the European rescue package amid mounting anger among fellow eurozone leaders.

European stock markets advanced strongly today amid mounting expectations that a Greek referendum on a European bailout plan will be abandoned.

It is understood that Greek Prime Minister George Papandreou will offer to resign in the next hour or so.

Europe’s debt drama dominated talks among leaders of the Group of 20 leading economies in Cannes today with Greece’s government facing potential collapse.

An MP from Greek's ruling Socialist party has said prime minister George Papandreou is "history".