Greek PM vows to stay in office, plans cabinet shake-up

"I will continue on the path of reform along the parliamentary group of PASOK and the Greek people. I will make a cabinet reshuffle on Thursday and request the vote of confidence from the parliament," he said in a televised address.

The vote is scheduled for this Sunday, according to government sources. Papandreou is expected to win, local analysts forecast.

Dismissing scenarios that he would resign, the Greek premier blamed the conservative main opposition New Democracy party for failure to reach agreement on forming a unity government to lead Greece out of the debt crisis.

"Greece faces critical times and we should all assume our national responsibility to address the crisis," he said, stressing that over the past 20 months his socialist administration managed to keep the country on its feet and escape default.

It was a clear comment on earlier rumors that he was ready to step down in exchange for a broad alliance government that would implement the fresh wave of austerity and reform measures EU/ International Monetary Fund lenders request from Athens in order to release more aid.

The address was made amidst political turmoil, as Greece was hit by a general nationwide strike on Wednesday that was marred with violent clashes between anarchists and police around the parliament building earlier this noon.