Greek Fire, Part 44

And Greek PM George Papandraeou is out as a new Greek transitional government will be formed.

Greek Prime Minister George Papandreou will resign after the makeup of the nation's new coalition government is decided, officials said Sunday.

Sunday's Cabinet meeting will be the last with Papandreou as prime minister, a government spokesman said in a statement. The meeting will focus on issues relating to Monday's Euro group meeting, at which Finance Minister Evangelos Venizelos will represent Greece, the statement said.

A spokesman for Papandreou's Socialist PASOK party said the prime minister will resign after the government is announced.

Venizelos is likely to remain in his post as finance minister in a new government, sources told Greek television. Candidates for the prime minister's job include Petros Moliviatis and Loukas Papaimos, according to Greek television.

The new government will have a life of four months, according to Greek television, citing sources, and elections will be held in early spring.

Papandreou won the no confidence vote on Saturday, but he's stepping down because opposition leader Antonis Samaras insisted that he did in exchange for winning the no confidence vote (which is kind of odd, because if Papandreou lost, the same process would have happened.)  I guess it was done in order to take the markets by surprise, maybe?

Either way things just got even more strange in Europe.  Batten down the hatches.  Monday's going to be crazy.