Papandreou's fate in Parliament's hands

Prime Minister George Papandreou and his government need 151 of 300 votes to stay in power but his government only has a two-seat majority in Parliament. Papandreou and his government faced a confidence vote in Parliament Friday that could determine whether Greece will have early elections or if talks on forming an interim administration will begin, Kathimerini reported. Papandreou indicated late Thursday he was willing to step down and allow an emergency government to be formed. If Papandreou fails to win the confidence vote, Greece likely would head for elections. Kathimerini said the Greek constitution allows either the defeated party or opposition parties the chance to form a coalition government. Observers note, however, early elections will be called instead. The prime minister said he never really intended to have a popular vote on Greece's new debt deal; he simply wanted opposition support, which he now has. He dropped his plan to hold a referendum on the bailout agreed to with the eurozone leaders last week after opposition leaders approved backing the deal and its attendant austerity measures. In an address to his Panhellenic Socialist party's central committee Thursday, Papandreou also said he would be willing to step aside, even if he wins Friday evening's parliamentary confidence vote, so others could form a unity government. "I am not clinging to my seat," he told the committee. He earlier told Britain's Sky News he never intended to hold a controversial popular vote on the bailout and on remaining part of the 17-nation eurozone. He only wanted Greece's conservative opposition to form a national consensus on the bailout. The prospect of a referendum led to three days of political tumult that whipsawed world markets and drove European leaders Wednesday to demand Greece once and for all decide whether it wants to remain part of the European Union and its currency bloc, the eurozone. "The question was never about the referendum but about whether or not we are prepared to approve the decisions on Oct. 26," he told the party committee, referring to the EU debt deal that includes banks agreeing to take a 50 percent loss on Greece's privately held debt. "What is at stake is our position in the EU," he said. Greece must also deepen its austerity measures in return for $179 billion in international aid loans.