I’ve been watching the latest developments in Greece here, on Skai TV; and as of four in the afternoon UK time, it seems George Papandreou has offered to step down as prime minister in order to allow the formation of a government of national unity admitting, essentially, that he is no longer capable of governing the country. Apparently, this offer was made to leader of the opposition, Antonis Samaras, who has said, according to Skai, that his conditions for supporting a national unity government are: a renegotiation of the troika economic ‘rescue’ package; constitutional reform; and changes in the country’s immigration policy.
A note on the ‘indignants’: they are reclaiming Syntagma Square from rioters, dancing pentozali and chanting, according to this report, Hellas, Hellas, Hellas.
UPDATE: rather than resigning, Papandreou has now declared his intention to carry on as prime minister, form a new government and seek endorsement for it from Parliament, effectively daring his own MPs to bring down the government. This doesn’t seem tenable. Papandreou’s time is done. He’s lost authority. He hasn't persuaded Greeks that they should suffer another wave of cuts and austerity measures.