Greece's?prime minister?faces key confidence vote

ATHENS, Greece?? Greece's embattled prime minister says the new European debt deal for his country agreed on last month is an opportunity that must not go to waste.

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George Papandreou was speaking in parliament late Friday before a crucial vote of confidence in his government, fighting to face down an open revolt from his governing Socialists sparked by an ultimately scrapped plan to put the deal to a referendum.

He renewed a call for opposition support for the plan and said snap elections would be a catastrophe for the country.

Papandreou said that elections would be held immediately after the financial situation is "normalized." He said leadership of a caretaker government is open to negotiation.

The political drama has horrified the indebted country's European partners and overshadowed the Group of 20 summit in the French resort of Cannes. The threat of a Greek default spooked global markets and worsened a continental debt crisis that has already forced massive bailout deals for Greece, Ireland and Portugal.

Papandreou's governing party has a tenuous majority of two in the 300-seat assembly, but at least one Socialist lawmaker has publicly threatened not to back him.

A Socialist revolt and international pressure forced Papandreou on Thursday to retract plans for a referendum on Greece's latest international bailout agreement. The referendum proposal sparked a global crisis, as investors feared that rejection of the hard-fought debt relief plan would force a disorderly Greek default.

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The new debt deal would give Greece an extra 130 billion euros ($179 billion) in rescue loans from the rest of the eurozone and the International Monetary Fund ? on top of the 110 billion euros it was granted a year ago. It would also see banks forgive Athens 50 percent of the money it owes them, some 100 billion euros. The goal is to reduce Greece's debts to the point where the country is able to handle its finances without constant bailouts.

If the deal stalls, Greece will not get the next installment of its loans and will probably go bankrupt before the year is out.

'Glued to his seat'
Through waves of austerity policies demanded by Greece's international lenders, Papandreou has carried the parliamentary group of his PASOK party with him, despite much grumbling within the ranks.

But a steady trickle of defections has reduced his majority to the point that one or two waverers could inflict a defeat in the confidence vote, expected as late as midnight (6 p.m. ET).

"We are like goldfish, waiting with our mouths open," writer Petros Tatsopoulos told Greek television, referring to the unfolding political drama.

Greeks gripped by the events gathered around newsstands to catch a glimpse of the headlines Friday.

PASOK has 152 deputies in the 300-member parliament. But one lawmaker said that while she would stay in the party, she would not back the government in the confidence vote, meaning Papandreou could count at most on the support of 151 deputies.

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While there is great pressure on him, Papandreou has given no indication that he plans to resign quickly, although he said Thursday night he was not "glued to his seat." But both his Socialist party and the opposition conservatives are talking about elections ? though they differ strongly on the timing.

Papandreou has said he will not resign, but both his Socialist party and the opposition conservatives are talking about elections ? though they differ strongly on the timing.

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A senior Socialist lawmaker said Friday that if the government wins the confidence vote, it can then launch talks with the main opposition conservatives on forming a caretaker administration to lead the country through the next few crucial months, when Greece must approve the bailout and thrash out debt write-off details with banks.

Christos Protopappas said elections could then be held in February or March.

"We need three or four months ... to rationalize the situation, restore calm to the country, get rid of that euro100 billion in debt and build international credibility," Protopappas told state NET radio. "Then we can get back at each others' throats for a month with elections ? at that point everyone will be able to wait for us."

Reuters and The Associated Press contributed to this report

Source: http://www.msnbc.msn.com/id/45161095/ns/world_news-europe/

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