ATHENS/CANNES, France (Reuters) – Intense European pressure forced debt-stricken Greece to seek political consensus on a new bailout plan instead of holding a referendum after EU leaders raised the prospect of a Greek exit from the euro to preserve the single currency.

Fast-moving events in Athens overshadowed the first day of a summit of the Group of 20 major economies on the French Riviera on Thursday, with anxious world leaders urging Europe to act to stop contagion from its sovereign debt crisis.

ATHENS, Nov 4 (Reuters) – 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 euro zone from disaster — backfired
disastrously.

But even if his socialist government survives the
parliamentary vote, Papandreou’s days as Greek leader looked
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.

ATHENS (Reuters) – Greek Prime Minister George Papandreou has struck a deal with ministers to step down and hand power to a negotiated coalition government if they help him win a confidence vote on Friday, government sources with knowledge of a cabinet meeting said.

They said the ministers involved in the deal were led by Finance Minister Evangelos Venizelos.

ATHENS (Reuters) – Greek Prime Minister George Papandreou has struck a deal with ministers to step down and hand power to a negotiated coalition government if they help him win a confidence vote on Friday, government sources with knowledge of a cabinet meeting said.

They said the ministers involved in the deal were led by Finance Minister Evangelos Venizelos.

ATHENS (Reuters) – Greek Prime Minister George Papandreou has struck a deal with ministers to step down and hand power to a negotiated coalition government if they help him win a confidence vote on Friday, government sources with knowledge of a cabinet meeting said.

They said the ministers involved in the deal were led by Finance Minister Evangelos Venizelos.

ATHENS (Reuters) – Greek Prime Minister George Papandreou defied demands on Thursday that he resign over his decision to hold a referendum on the nation’s euro zone bailout deal, calling instead for his party to unite for a confidence vote in the government.

Papandreou fought back off the ropes, saying the referendum plan which provoked uproar at home and around the euro zone had forced the opposition to accept the 130-billion-euro rescue and its conditions — a new wave of deep austerity.

ATHENS (Reuters) – Prime Minister George Papandreou said on Thursday he would scrap a referendum on Greece’s bailout lifeline if the conservative opposition agreed to back the package in parliament.

Events in Athens gathered speed a day after Papandreou held a bruising meeting in France with German and French leaders, who told him Athens would not receive a cent more in aid until it voted to meet its commitments under the bailout deal.

ATHENS (Reuters) – Prime Minister George Papandreou faces a sudden fall from power just two years after the son and grandson of famous Greek premiers won election and immediately warned that his nation was staring into a financial abyss.

State television and the state ANA news agency reported Papandreou would meet President Karolos Papoulias Thursday, without giving any further details, but Papandreou’s options are either to submit his resignation or request a unity government.

ATHENS/CANNES, France (Reuters) – Greece’s government was on the brink of collapse on Thursday, casting doubt on plans for a referendum on staying in the euro, as European leaders talked for the first time of a possible Greek exit to preserve the single currency.

Beleaguered Prime Minister George Papandreou chaired an emergency cabinet meeting in Athens, with his finance minister and some Socialist lawmakers in revolt, after France and Germany gave Greeks an ultimatum to make up their minds.

ATHENS (Reuters) – The Greek government teetered on the brink of collapse on Thursday over plans for a referendum on a euro zone bailout, with ruling party defections casting grave doubt on whether Prime Minister George Papandreou can survive a confidence vote.

“I don’t think the government will last until tonight,” said Costas Panagopoulos, Managing Director of pollsters ALCO.