Greek government on brink of collapse

The Greek government teetered on the brink of collapse yesterday over plans for a referendum on a euro zone bailout, with defections from the ruling party 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.
Finance Minister Evangelos Venizelos broke ranks with Papandreou, coming out against holding the referendum after a bruising meeting with the German and French leaders, who made clear that Greece would not receive a cent more in aid until it votes to meet its commitments to the euro zone.
"The referendum is dead," Greek ruling party lawmaker Nikos Salayannis said on state radio.
An emergency cabinet session was scheduled for midday followed by a likely meeting of lawmakers from Papandreou's socialist party PASOK amid speculation that they will call on him to resign.
Another PASOK lawmaker said she would not support the government in a parliamentary vote of confidence today, cutting its majority for the vote to just one. Snap elections would probably follow if Papandreou's majority vanished.
PASOK was in turmoil yesterday, with one senior lawmaker calling for a government of national unity following Papandreou's shock call for the plebiscite, and another saying he should resign.
If the government fell and snap elections were called, the referendum would be cancelled. The bailout would have to be approved by the next parliament that emerges from elections.
Some lawmakers are calling for a government of national unity which would have the job of getting the bailout through parliament before calling early elections. But the main opposition New Democracy has repeatedly refused cooperation.