G-20 in disarray as Greek bail-out plan totters

Leaders of the Group of 20 leading economies at their summit in Cannes, France seems to have lost hopes of saving Greece from the bottomless pit and instead started discussing ways to protect major euro zone economies like Italy and Spain from the debt crisis.

The summit that was to discuss a host of issues like the reform of the global monetary system, speculative capital flows and black money is now in disarray.

France and Germany have clearly told Greek President George Papandreou to shape up or move out of the euro zone.

Papandreou is back in Athens pushing for a referendum on the rescue package, bringing global financial markets into further chaos.

Papandreou himself is facing a revolt from within his own governing Socialist party the Pasok after he scrapped plans to hold a referendum.

The referendum, expected in early December, will decide whether Greeks want to stay in the currency bloc or hang on to a new €130-billion bailout package.