Europe on the Brink as Greece Calls Off Referendum

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.