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Quite unexpectedly, Greece may have a new cabinet by the end of the day. It became clear a while ago that a reshuffling is possible due to LAOS leader George Karatzaferis refusal for the deputies from his party to support the austerity measures for the new bailout.

According to government sources, Prime Minister Lucas Papademos faces the dilemma of whether to protect his personal credibility or that of the cabinet. In recent hours, he has had contacts with many members of the government. Some say he will make the decisions immediately.

"Everything has to happen tonight. Otherwise, party interests will prevail and some will try to present the Prime Minister as a creditors’ agent," stated an unnamed source.

Minutes ago, the four ministers from LAOS submitted their resignations to Lucas Papademos. This was expected to happen during the Council of Ministers meeting in the afternoon. According to analysts, it will speed up the pace of events. These are Minister of Transport Makis Voriadis and Deputy Ministers of Defence, Georgeos Georgiou, of the Merchant Navy, Adonis Georgiadis, and of Agriculture, Asterios Rondoulis. In a written address to the president of LAOS, Makis Voriadis and Adonis Georgiadis stated that despite the fact that they have resigned, they would vote in favour of the new bailout. Observers are talking of crisis in the ranks of LAOS and of strong dissatisfaction with the decision of president George Karatzeferis to withdraw his support of the government.

At 6 pm, the Deputy Minister of Foreign Affairs Mariliza Xenogiannakopoulou submitted her resignation. In her letter to the Prime Minister, she indicated she was leaving the office, because she could not sign the measures that "cancel collective bargaining and labour rights." Yesterday the Deputy Minister of Employment George Koutsoukos also resigned.

Currently, the Council of Ministers is meeting under the chairmanship of Prime Minister Lucas Papademos. "Today we are taking the historical responsibility to adopt imperative economic reforms to save the country from certain bankruptcy," said the Prime Minister at the opening of the meeting. His speech was to have been broadcasted live on Greek television channels, but it was decided at the last moment that only some parts of it would be broadcasted.

Tomorrow, Saturday, the parliamentary groups of PASOK and New Democracy– the two parties that still support the government – will meet. Two members of the Socialists - Milena Apostolaki and Ioannis Miheloyanakis said they would vote against the new loan from the European Union and the International Monetary Fund, and the lawmaker from the city of Arta Pavlos Stasinos resigned. Fifiteen members of PASOK are unwilling to support the new bailout. New Democracy does not preclude lawmakers to be compelled to comply with party discipline and vote for the agreement.

On Sunday, the Greek National Assembly will have to pass a law containing three texts. The first is to approve the agreement with private creditors for the 50% haircut of the Greek debt. The second is to authorize Prime Minister Lucas Papademos and Minister of Finance Evangelos Venizelos to conclude the second bailout of 130 billion euro with the European Union and the International Monetary Fund, and the third is to arrange the recapitalization of Greek banks. If Parliament fails to adopt this law, the road to uncontrolled bankruptcy and to leaving the eurozone will be open for Greece.