Greek Coalition Talks Founder

The New York Times reports:

Prime Minister George Papandreou of Greece said on Wednesday that he would reshuffle his cabinet and request a vote of confidence in Parliament after talks with the opposition about a unity government foundered.

Earlier in the day, as thousands took to the streets to protest austerity measures, Mr. Papandreou offered to step aside so that his Socialist party could form a coalition government with the center-right opposition, but only if the opposition would support a new bailout plan for the debt-ridden country.

Greece needs to pass a new round of austerity measures by the end of the month in return for fresh loans from the International Monetary Fund and the European Union.

Mr. Papandreou’s support has been plummeting, even within his party, and the Socialists appear to be lagging behind the center-right opposition for the first time since the current government was elected in 2009. With a five-seat majority in Parliament, Mr. Papandreou has been struggling to get his government fully behind the measures and to contain growing rifts within his party