Greece's prime minister has held firm to his shock decision to call for a referendum on a hard-fought European debt deal, despite anger from abroad, market turmoil across the world and dissent from within his own party.
After a gruelling seven-hour cabinet meeting, government spokesman Ilias Mossialos said early Wednesday that ministers expressed "total support for the initiatives taken by the prime minister" and the referendum would be held "as soon as possible".
However, government officials said two ministers still had strong reservations to the idea of a referendum, which will be the first in Greece since the country voted to abolish the monarchy in 1974.
George Papandreou's government still faces a battle for survival with a vote of confidence scheduled for Friday and a grilling from frustrated European leaders expected later Wednesday ahead of a Group of 20 summit in the French Riviera.
World markets were hammered across the world after Papandreou's surprise Monday night announcement amid fears the vote could unravel a deal which took European leaders months of complex negotiations among themselves and with banks to reach.
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Greece's general price index plunged to close down 6.92 per cent, while in Germany the Dax index, the major stock market average, lost 5 per cent - the equivalent of about 600 points on the Dow.
The French stock market closed down 5.4 per cent, the Italian 6.7 per cent and London 2.2 per cent.
Papandreou's decision had left his government teetering on the verge of collapse on Tuesday as his own deputies rebelled and his Socialist party saw its parliamentary majority whittled down to just two seats in the 300 member legislature.
