Greece took a step closer towards default overnight.
The Greek prime Minister Lucas Papademos failed to convince any of his party colleagues in accepting new austerity measures in return for a second 130 billion euro bailout.
After five hours of discussions last night, the three leaders of Greece’s national unity government had not accepted demands by international lenders for immediate spending cuts and labour market reforms as part of a new medium-term package.
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Party leaders in Greece’s governing coalition will resume crisis talks on backing the European Union rescue plan later today.
