Greek Prime Minister George Papandreou narrowly won a confidence vote in parliament on Saturday, avoiding snap elections which would have torpedoed Greece's bailout deal.
Out of 300 MPs, 153 voted for the government.
All members of Mr Papandreou's party in parliament supported the government, but his term as prime minister appears close to an end.
Earlier, Mr Papandreou called for a new coalition government to approve the EU's 130 billion euro bailout deal and signalled he was ready to stand down.
Before the vote was held, he said he would go to the president to discuss formation of a broader-based government that would secure the bailout.
The vote took place after several hours debate with Mr Papandreou addressing parliament for more than half an hour.
He said the bailout deal currently on offer by the EU had to be accepted and it would be ''historically irresponsible'' to lose it.
Mr Papandreou said immediate elections would be ''catastrophic'' for the deal, so proposed a new coalition to take charge until it had been agreed.
''I therefore ask for a vote of confidence in order to ensure the security of this nation,'' he said.
The BBC reports the vote was timed to take place when the markets in Europe and the United States are closed.
Referendum abandoned
Finance Minister Evangelos Venizelos said plans to hold a referendum on the latest bailout and austerity deal for Greece have been abandoned.
The proposal, put forward by Mr Papandreou earlier in the week, caused turmoil on financial markets and consternation in the European Union.
Mr Venizelos told EU officials that Greece has officially scrapped the referendum.
European Commission president Jose Manuel Barosso says it is possible Greece could end up abandoning the euro.
But he says he expects Greece to form a government of national unity and keep the single currency.
