[Al Jazeera] George Papandreou, the Greek prime minister, has in a televised address said he will form a new government on Thursday and seek a vote of confidence from his PASOK parliamentary group.His announcement on Wednesday came shortly after the opposition turned down his offer to stand down to facilitate the formation of a unity government for passing tough austerity measures.
"I will continue on the same course. This is the road of duty, together with PASOK's parliamentary group, its
members, and the Greek people," Papandreou said.
"Tomorrow I will form a new government, and then I will ask for a vote of confidence," he said.
He had earlier said the proposed new unity government must support the European Union and International Monetary Fund (IMF) bailout, and should not seek to overhaul it.
But opposition conservatives insisted a unity government was only possible if the bailout was renegotiated.
Street festivities
The day's political developments came as the government debated fresh austerity measures that would extend beyond its term in office amid violence on the streets of capital.
Protesters rallied outside parliament chanting "thieves, traitors" and asked "where did the money go?" as they demonstrated amid a 24-hour national strike organised by major labour unions which saw hospitals, transport and other public services crippled.
Small groups of youths threw stones and petrol bombs at police cordons, and smashed the windows of a luxury hotel on Syntagma square, outside the parliament building.
Police responded to the violence with tear gas.