Athens: Two officials close to Greek Prime Minister George Papandreou said he has scrapped his plan to hold a referendum on the latest European debt deal for Greece after the main Opposition leader said would back it.
The two officials said George Papandreou made the comments during an emergency Cabinet meeting Thursday. One also said the premier would not resign despite mounting pressure, and would await the outcome of Friday's confidence vote in his government.
They spoke on condition of anonymity to disclose talks in the Cabinet meeting, being held in Parliament.
Earlier, a spokesman for Greece's government said it is prepared to discuss an Opposition demand for the creation of a transitional government to approve the latest European bailout deal and secure the next installment of rescue loans for the country.
Government spokesman Ilias Mossialos, reading from a statement, said on Thursday "we are ready for a serious discussion" on the conservative opposition proposal. Prime Minister George Papandreou faces a confidence vote on his government Friday.
Opposition leader Antonis Samaras had called for a caretaker government to handle the political crisis triggered by Papandreou's call to put the European deal to a referendum. His party says any transitional administration would not be made up of political party members.