Thailand's Cabinet agreed Thursday to hold a referendum on a civic group's street campaign to oust the prime minister, which has paralysed the government for the last 10 days and raised fears of violence and economic chaos.
The decision came hours after a defiant Prime Minister Samak Sundaravej went on national radio and vowed he would not step down.
His combative speech intensified the deadlock with the People's Alliance for Democracy, whose supporters have taken over the sprawling lawns of Samak's office in their thousands since storming through the gates on Aug. 26.
Describing the alliance as an anti-democratic group and their actions as a shameful embarrassment for the country, Samak said he will not bow to its demands.
"I will not abandon the ship, and I will take responsibility for the crew on board," Samak said, peppering his speech with folksy language. "Let me say this before the national anthem. I am not resigning. I have to protect the democracy of this country."
A referendum could show a way out of the deadlock.
Samak said in a radio interview later that the referendum will ask the public if they agree with the alliance's campaign and if they believe the government should resign.
But first, a law would have to be passed by the Senate because there is currently no provision for a referendum. Once the law is passed, it would take about a month to hold the vote, he said.
"While waiting for the result of referendum, the protesters can demonstrate. I can wait," he said.
The announcement was met with scepticism from the anti-government protesters camped in the compound of Samak's office, the Government House.
Analysts also cast doubts, saying a referendum would be too costly and unlikely to have credibility.
"A referendum is normally used to test public approval on whether to go to war or pass an important law. It would not be effective as a tool to solve a complicated political crisis with many conditions and layers," said Panithan Wattanayagorn, a political science professor at Bangkok's Chulalongkorn University.
"The problem is complex and nuanced and asking a yes or no question will only further divide the country," he said.
The protesters are living under makeshift tents, and organisers have set up a high stage from where leaders deliver regular speeches in between music concerts to keep the protesters entertained.
The People's Alliance for Democracy has already forced one prime minister from power staging demonstrations in 2006 that paved the way for the bloodless coup that removed Thaksin Shinawatra.