Greek PM to form new govt and seek confidence vote

Attempting to calm the waters after a day of fierce protest and a national strike.

The Greek Prime Minister has announced a cabinet reshuffle and says he will seek a vote of confidence on Thursday from his parliamentary group.

George Papandreou spoke to the nation after a day that saw running battles between riot police and protesters.

The demonstrations were in front of the parliament, where deputies met to debate a plan to widen austerity measures.

Earlier, government sources said the prime minister had made a surprise offer to the opposition conservatives. He said he would resign and form a unity government if they gave their backing to the country’s EU/IMF bailout plan.

To continue receiving bailout money, the government is being told it must introduce yet more reforms. These include tax rises, spending cuts and sell-offs of state property.

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