Greece Prime Minister Steps Down

Ongoing financial crisis in Greece will pose as one of the leading reasons for the resignation of George Papandreou from his spot as prime minister.

According to an MSNBC report, heightened debt over the years has been caused by international lenders urging the country to cut pensions, pay and raise taxes, the main reason for Greece's four years of recession and recent rioting and national uproar toward government regulation. Recent weeks saw a referendum ordered by Papandreou which could have ended up converting Greece back from the euro to the original drachma, completely removing Greece from the euro zone. The proposed referendum for a true display of democratic action in Greece was called off after a long day in Cannes, France for the G20 meeting.

In order to prevent any further disarray in hashing out a solution for the country's debt crisis, the prime minister has stepped down under the condition that a 130 billion euro bailout ($170 million in U.S. currency) is granted to the country from the European Union.

The financial turmoil in Greece along with its history of declining economic standing have been the reason for the past bailout from the European Union and International Monetary Fund, but a short-lived rally for a referendum to change the currency could have caused an uproar, especially after such large amounts of money were spent to help the country recover. Even if the bailout is passed by Parliament, a CNN article speculates that this second bailout for the country of Greece will come at the price of a lowered standard of living.

Greece will most likely announce a new prime minister today, although the term will only be permanent until upcoming elections in February, when the bailout deal is speculated to be in place.The new placement of prime minister has not proven to be an easy task, with no certainty yet about who will be chosen, according to Reuters.

                            Photo courtesy of quapan - Flickr

While no speculation is guaranteed, MSNBC reports that many signs point to former vice president of the European Central Bank, Lucas Papademos, getting the job. Whoever is chosen as prime minister of Greece, the financial struggle for the country is most likely far from over, regardless of whether the bailout is chosen or not.