Greek prime minister faces knife-edge survival vote

Greek Prime Minister George Papandreou faces a knife-edge confidence vote on Friday after his plan for a referendum on a bailout -- supposed to save both Greece and the Eurozone from disaster -- backfired spectacularly.

But even if his socialist government survives the parliamentary vote, Papandreou's days as Greek leader seem numbered after a deal with his cabinet under which, government sources said, he agreed to stand down after negotiating a coalition with the conservative opposition.

Much of Greece and many European leaders reacted with horror after Papandreou abruptly announced on Monday that he would put the 130-billion-euro ($180 billion) rescue plan, agreed at a Eurozone summit only last week, to the Greek people.

Papandreou came out fighting, rejecting opposition demands, in public at least, that he make way for a caretaker administration with just two tasks: forcing the bailout through parliament without a referendum and calling a snap election.

Α steady trickle of defections has reduced his majority to the point where one or two waverers could inflict a defeat on the confidence vote, expected as late as midnight (2200 GMT).

PASOK has 152 deputies in the 300-member parliament. But lawmaker Eva Kaili said that while she would stay in the party, she would refuse to support the government in the confidence vote, meaning Papandreou could count at most on the support of 151 deputies.

Only one more defection would strip the government of its majority and probably trigger an early election.