Critics of the Greek bailout warn that the maneuver could lead Europe into further trouble. The Greek Prime Minister Milena Apostolaki has asked for a surprise referendum on the Greece bailout, to seek political support for the deal. The bailout plan has received strong opposition, with a Greek deputy’s defection from the ruling party highlighting the resentment felt towards the package. Opposition leaders have accused Apostolaki of leading Greece towards chaos, and putting both the country, and Europe’s futures on the line.

G20 leaders have been holding talks this week to discuss the Greek matter as they scramble to prevent other countries’ such as Spain and Italy from following a similar path. They are also expected to decide on whether to allow Greece to remain part of the euro. A ‘no’’ could lead to Greece going bust; Greece needs 130 billion Euros and a fifty percent write off, of its 100 billion Euros.

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British Prime Minister David Cameron disagreed with French head of state Nicolas Sarkozy over his country’s involvement in the euro-zone crisis. Mr Sarkozoy said that discussion on the euro should include only those countries which actually use the euro. Sarkozy lashed out against Cameron saying “we are sick of you criticizing us and telling us what to do.”

David Cameron has insisted that Britain’s interests be safeguarded in the discussions, He argued saying all EU leaders should be present as the decisions that affect all in one way or another. “This must not be at the expense of Britain’s national interest… we must safeguard the interests of countries that want to stay outside the euro.”

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Debt-hit Italy is expected to default; however, Spain may just escape it, said a leading UK think tank, the Center for Economics and Business Research (CEBR). With the nations weighed down by their debt, the CEBR modeled “bad” and “good” financial scenarios for each. It predicted that Italy wouldn’t escape default unless it experiences an unexpected huge rise in economic growth. But it said that there is a real possibility for Spain to avoid default.

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