Greece referendum twists: Your stories
Greek Prime Minister George Papandreou is set to tell European leaders in Cannes why he has called a referendum on the bailout package they all agreed to last week.
Mr Papandreou's Cabinet has endorsed his decision - but officials across the eurozone have expressed concern that delaying measures to cut Greece's debts could harm the single currency
BBC News website readers who live in Greece have given their reaction to the latest developments.
Emma Karanastasi, Kos
I am a British citizen living and paying taxes in Greece. I moved here in 1999.
When we heard about the bailout package last week, we were relieved that something was happening.
People were relaxed as there appeared to be an attempt to take control of the situation. We knew there would be consequences but now we have no idea what Mr Papandreou is thinking with this idea of a referendum.
I'm not politically minded but nobody knows what is going on. I know people who are going to the banks and withdrawing every little bit of cash they have.
My husband and I earn a combined income of 1,700 euros a month but this is only for six months of the year as we both work in tourism-based economies - he is a security agent at the airport, while I work as a waitress.
However this is considered to be a good family income here in Greece.
Petrol is 1.70 euros a litre, bread is 1.20 euros a loaf and milk costs one euro a litre.
My nine-year-old daughter is at school with no books this year as the government cannot afford them.
The strikes too have had an effect. Although we live on an island, the strikes on mainland Greece result in problems with supplies to us.
At one point we had no fresh milk as it couldn't be delivered to us. We had to give the children ultra-high temperature (UHT) milk and mix it with chocolate to take the funny taste away - just so they would drink it.
We know of many people who are planting vegetables in their garden just so they have a steady food source. It's something we're considering too.
There is certainly a distinct difference of opinion between Greek nationals and foreign residents over this crisis.
The Greeks are very nationalistic and are determined to tell the rest of Europe to "get lost", but from a "foreigner's" point of view, it wouldn't be the worst thing in the world for someone to step in.
We love the country we live in, but we can see its faults and strengths from a third party's point of view.
I would prefer to see the drachma brought back in, even if it means two to three years of extreme hardship.
It can't possibly be any worse than it is now can it?
Yannis Zabetakis, Athens
I am an assistant professor at the University of Athens and I also have two boys aged seven and five and I am worried about what their future holds.
I am very puzzled and angry about the latest developments.
The prime minister and his cabinet are asking people to make a decision on a highly unpopular policy that will affect this country for the next 10 to 20 years.
The austerity measures have created unemployment and poverty and it will take a long time and drastic action to turn this around.
We have a lost generation in Greece. Many of our young people feel they have no option but to migrate abroad just to find work.
But following a path that leads to a referendum is a naive path. You are asking people to decide now policies that will change the lives of people in the future - when we have no idea about what is going on.
What we really need are elections. Give people a true choice. This government was not elected to do this and so I think their actions are illegal. They are trying to legitimatise their actions.
But our experience of the last three years shows that the recipe they are making is all wrong and should not be continued.
It is like they are milking us - the cash cow - to death through overtaxing and austerity.
We need a bailout but the government is being immature.
I think the prime minister has committed political suicide. His actions mean the good collaboration we had with the rest of the eurozone countries, with leaders such as Sarkozy, is gone.
Everyone in this country has had to make changes to their life. My family's income has gone down by 20%.
We are making sacrifices every day. I mean we even have to restrict the books we buy for our children.
The worst thing is that people have lost their smiles, their humour, their optimism.
Vasiliki Vassiliades, Psara
I think that Prime Minister George Papandreou's decision to announce a referendum is actually quite a smart move.
If money can be injected into the economy, then there will be hope.
I'm 60 and I'm retired. I was looking for a job in the US where I was living but I couldn't find a role teaching english as a second language.
Earlier this year I decided to relocate to Greece so that I could save money and see if there were any opportunities here for me.
I've renovated a family home we have here and am able to live rent-free. I also get a small stipend which I live off of.
But my island is quite small and you see how Greece's austerity measures have affected everyone. Even here we have a lot of Albanians who work in the construction industry. But many are heading back to Albania because there are no jobs here.
I'm in a relatively good position but I honestly don't know how other people are coping.
I left the US because I believed that the EU would provide Greece with a bailout package and the situation would begin to get resolved.
What the prime minister has done is brilliant. Hopefully the EU will see that Greece needs more help and modify the aid package.
Interviews by Dhruti Shah