Greek Prime Minister George Papandreou said yesterday he would seek a confidence vote as thousands besieged Parliament against new austerity cuts and debt-hit Athens teetered on the brink of default.
Mr Papandreou also said he would reshuffle the government after an offer to the opposition to join the government was apparently spurned by the conservatives.
“Tomorrow I will form a new government and will immediately ask for a vote of confidence in Parliament,” Mr Papandreou said in a televised address. “I will continue on the same road, the road of duty.”
The announcement came after feverish media speculation that the prime minister had offered to resign if it could help secure an agreement with the conservatives on a unity government to tackle the debt crisis.
State television NET and other media had earlier reported that Mr Papandreou had made the proposal to opposition conservative leader Antonis Samaras to secure backing for new controversial reforms required to secure another debt bailout.
The Prime Minister did not indicate the extent of the reshuffle, which comes as the government prepared to push through parliament a controversial new wave of cuts required to clinch another EU-IMF bailout for Greece.
Greece has warned it will be unable to pay next month’s bills without a €12-billion loan instalment from the EU and the IMF, part of a broader €110-billion bailout package agreed last year.
But the creditors have warned that no more aid will be forthcoming without firm reform commitments from Athens.
Many Greeks are angry that additional sacrifices are demanded after billions of euros in spending cuts and tax hikes last year.
Some 40,000 people, according to media estimates, demonstrated in Athens yesterday in a protest timed to coincide with a crippling general strike, the third this year against the austerity cuts. They also ringed Parliament.
Police fired tear gas as clashes with protestors left at least 40 injured, health services and the police said.
Another 20,000 people gathered in the main northern city of Thessaloniki, police said.
Sixteen people were arrested after the violence.