BBC News with Iain Purdon

The fate of George Papandreou's crisis-stricken government will be decided in the next few hours with a confidence debate underway in the Greek parliament. The Socialists barely command a majority after defections from their own ranks following the prime minister's controversial proposal for a referendum on the latest bailout and austerity deal. Mark Lowen reports.

It now appears that what originally caused this week's political crisis in Greece has been scrapped. The prime minister concocted the proposal for a referendum on the latest bailout package for the country. But now it's his finance minister who's officially killed the plan, indicating once again a rift at the very top of the Greek government. With the threat of a referendum removed, George Papandreou hopes he will secure the backing of his own MPs in the confidence vote on Friday night. But even if he scrapes through this test, speculation is mounting that he will soon call for a new government of national unity and may stand aside in the coming weeks, hoping for a dignified exit.