Greece Financial Crisis
As riots engulfed Athens, Greece's ruling Socialists launched talks to form a coalition government with rival conservatives — even though Prime Minister George Papandreou's resignation may eventually be the price for a deal.
Section:Picture story
Police block access to the Greek Parliament as protesters wave Greek and Spanish flags during a rally against plans for new austerity measures, in central Athens, Wednesday, June 15, 2011.
Lefteris Pitarakis Associated Press
A deal would help ensure approval of a new austerity plan that has enraged a nation already hit hard by draconian welfare cuts but is also essential to avoid a default that would knock the global economy.
Associated Press
A demonstrator confronts riot police at Syntagma square in front of the Greek Parliament in central Athens, during a rally against plans for new austerity measures, on Wednesday, June 15, 2011.
Thanassis Stavrakis Associated Press
Demonstrators throws a petrol bomb to riot police at Syntagma square in front of the Greek Parliament in central Athens, during a rally against plans for new austerity measures, on Wednesday, June 15, 2011.
Thanassis Stavrakis Associated Press
The emergency talks came as riot police clashed with thousands of youths in the main square outside Parliament. Police fired repeated volleys of tear gas to repel rioters hurling firebombs and ripped-up paving stones. A crowd of youths smashed the windows of a luxury hotel in the square.
Associated Press
Demonstrator shouts slogans outside the Parliament in central Athens, during a rally against plans for new austerity measures, on Wednesday, June 15, 2011.
Kostas Tsironis Associated Press
Demonstrator kicks away tear gas canister outside the Parliament in central Athens, during a rally against plans for new austerity measures, Wednesday, June 15, 2011.
Kostas Tsironis Associated Press
As unrest spiraled, the coalition talks appeared to come at a high cost: Prime Minister George Papandreou's job. Papandreou's government had already been facing an internal party revolt over the new austerity package that's the main condition for continued funding from an international bailout and avoiding a devastating default which would undermine the future of the eurozone.
Associated Press
Greek Prime Minister George Papandreou, center, accompanied by his advisors Nikos Ziogas, left,and PASOK Secretary General Nikos Athanasakis leaves the Presidential Palace after his meeting with Greek President Karolos Papoulias, in central Athens, Wednesday, June 15, 2011.
Petros Giannakouris Associated Press
A demonstrator confronts riot police at Syntagma square in front of the Greek Parliament in central Athens, during a rally against plans for new austerity measures, on Wednesday, June 15, 2011.
Thanassis Stavrakis Associated Press
A masked protester walks in tear gas next to a statue outside of the Greek Parliament in central Athens, during a rally against plans for new austerity measures, on Wednesday, June 15, 2011.
Lefteris Pitarakis Associated Press
Wednesday's chaos triggered a sell-off in global financial markets as investors worried that a default in Greece could hurt banks in other countries in a chain reaction experts predicted would be catastrophic. Yields on the country's 10-year bonds reached new record highs, spiraling to 18.4 percent.
Associated Press
Left and right wing demonstrators beat each other at Syntagma square in front of the Greek Parliament in central Athens, during a rally against the new austerity measures, Wednesday, June 15, 2011.
Dimitri Messinis Associated Press
Papandreou and conservative party leader Antonis Samaras discussed the creation of a power-sharing government to deal with the country's crippling debt crisis during a telephone conversation, an opposition party official told The Associated Press. The official spoke on condition of anonymity because the negotiations were still ongoing. The official said the conservatives' conditions for participating in a potential grand coalition were that Papandreou leaves his current position as prime minister, and the new government re-negotiate the bailout agreement.
Associated Press
Police arrest a demonstrator who tried to block the road to the Parliament during a rally against plans for new austerity measures, in central Athens, Wednesday, June 15, 2011.
Associated Press
Demonstrators confront riot police at Syntagma square in front of the Greek Parliament in central Athens, during a rally against plans for new austerity measures, on Wednesday, June 15, 2011.
Thanassis Stavrakis Associated Press
The new bill, worth euro28 billion ($40.5 billion) must be passed if Greece is to continue tapping its rescue loans. Markets have been in turmoil amid waning confidence that Papandreou could win the vote in the 300-seat Parliament, where his majority was trimmed to five Tuesday after one of his deputies rebelled and declared himself an independent. Another deputy has said he will not support the bill, due to be voted on by the end of this month.
Associated Press
Demonstrators shout and confront riot police near the Greek Parliament in central Athens, Wednesday, June 15, 2011. Riot police used tear gas Wednesday to disperse groups of youths hurling firebombs and rocks on the sidelines of a major anti-austerity rally outside Parliament, where the struggling government was to seek support for new cutbacks required to avoid a debt default.
Petros Giannakouris Associated Press
Wednesday's riots broke out and lasted several hours after large crowds of more than 25,000 people gathered outside Parliament and as unions held a general strike to protest the new austerity. Thirty-six police and 30 civilians were injured, police and medical officials said. Fifteen people were arrested, police said.
Associated Press
Foreign tourists run away from clashes between police and demonstrators at Syntagma square in front of the Greek Parliament in central Athens, during a rally against the new austerity measures, on Wednesday, June 15, 2011.
Dimitri Messinis Associated Press