Papandreou to brave no-confidence vote, cancels referendum

The news comes as Greeks await news on decisions taken earlier today by Papandeou’s Cabinet, which was summoned for an extraordinary meeting in Athens.

According to sources, Papandeou has agreed to face the no confidence vote tomorrow and step down to hand over to a technical transitional government that will take the lead until new general elections are called, should he lose the vote.

Papandreou – who is expected to address his party later today – has battled through the economic crisis, and has dangerously edged towards losing his parliamentary majority.

Greek media reported that Papandreou is set to see the country’s President to inform him about his decisions.

The former deputy governor of the Greek Central Bank Lucas Papademos is being suggested as interim Prime Minister.