Greek PM George Papandreou has said he is ready to drop a proposed referendum on the country’s eurozone bailout deal.
He said he had started talks to secure opposition support in parliament which would make the vote unnecessary.
His announcement of a referendum angered European leaders and sent shockwaves through its markets.
Facing calls for his resignation, Mr Papandreou called for unity in ruling party ranks ahead of a confidence vote on Friday. He has a thin majority.
But Finance Minister Evangelos Venizelos, addressing the Socialist Party (Pasok) MPs immediately after the prime minister, said Greece must say it was not holding a referendum.
He said Greece must do everything it can to reassure its international partners it will immediately implement the Eurozone bailout deal.
EU leaders say Greece cannot get bailout cash until it agrees the deal.
