The announcement by Greek Prime Minister George Papandreou that he is pushing through with a referendum on the EU rescue agreement has not only jolted financial markets but gave rise to more apprehensions of a pending economic destabilization and even recession.

Papandreou, who is reportedly being asked by party mates to relinquish his post for endangering the country's position in the Euro zone, remains confident despite the appalling decision that he would win a vote of confidence.

After the announcement was made by the beleaguered Greek leader, European markets were thrown into turmoil and the Athens stock exchange decreased by more than 6 percent due to anxiety that the Greek government was going to collapse.

Most observers expressed their beliefs that if Greek citizens voted against the bailout, which is scheduled early next year, this would result into a default and affect other distressed economies in the Euro zone.

The chief executives of Germany and France are contemplating to stage emergency meetings with other Euro zone nations and international creditors.

Reuters reported that Germany's finance minister Wolfgang Schaeuble issued a statement to the Financial Times Deutschland that he was positive that Greeks would be giving their full support to reforms being initiated by their government.

Papandreou stated earlier that he would obtain a vote of approval from members of parliament on Friday and hold the referendum as intended.

Still, the uneasiness hovers, as most observers think that there is very little basis for buoyancy because if ever Papandreou and the ruling party can convince majority of the electorate to say yes to the stipulations of the new bailout and controversial austerity measures, banks and markets would be cynical of the outcome of the referendum which is several months away.

151 votes are required to ensure the ratification of the referendum.

Meanwhile, some ministers were said to have supported the Greek leader while others openly displayed their resistance to the proposal, according to the Reuters report. Others even suggested the holding of a snap election.

Even Finance Minister Evangelos Venizelos was not allegedly informed about the referendum by Papandreou.