Greece economy continues to crumble as the country takes the title of ‘sick man of Europe’ while Greek prime minister belies resignation rumors, generals are being fired in coup suspicions and a surprise rate cut from the European Central Bank shocks the country.

Athens / NationalTurk – With his hands tied by the worst financial crisis in decades in Greece, distressed Greek Prime Minister George Papandreou hopes for a positive response from EU heavyweight Germany’s Chancellor Angela Merkel.

Greek Prime Minister George Papandreou rejected rumors he would resign as he stepped back from a contentious decision to hold a referendum on unpopular austerity measures in the face of fierce criticism from across the European Union.

Papandreou told the Greek Cabinet, that the referendum was never an end in itself and continued ‘Greece had a dilemma – either true assent or a referendum. As I have said the day before, if the assent was there, we would not need a referendum.’

EU to Greece : Accept or die poor

European leaders warned that if Greece does not respect the terms of the rescue deal, it will not get ‘one more cent’ from the next planned installment of EU and IMF funds. European stock markets plunged then recovered just as sharply, as G-20 leaders’ summit opening ceremony in Cannes, France with hopes shattered.

The European Central Bank’s new chief, Mario Draghi, announced to cut rates in the markets yesterday tosmooth down the investors.

Greece Finacial Crisis : Greece’ fate is subject to betting

Greece battles alongside poor economy coup threats. The Greek government has dismissed the country’s top military brass allegedly to thwart a coup.

Meanwhile, British bookmaker William Hill offered odds of 2/3 yesterday that Greece would cease to use the euro by the end of 2012, the first time it has bet odds-on that Athens will exit the EU currency.