Rehn urges Greece to show ‘political responsibility’

EU Commissioner Olli Rehn has called on Greek leaders to show "political responsibility" following the news that Greece's Democratic Left party is to pull out of Government.

Speaking during a break in today's meeting of EU finance ministers in Luxembourg, the EU economics commissioner said it was important for Greece to focus on "policy, not politics."

“It is very important to stabilise the political situation in Greece immediately and really concentrate all energy on implementation of the programme”, the EU’s economics chief said. “I appeal to the sense of political responsibility of all political leaders and the Greek people .”

Political stability in Greece has threatened to overshadow today’s meeting of EU finance ministers in Luxembourg, at which the European Union’s plans for banking union are scheduled to be discussed.

Greece’s Democratic Left party announced it is to pull out of Prime Minister Antonis Samaras’s coalition government in protest at the handling of the closure of the Greek public service broadcaster , ERT.

Though the smallest party in the coalition, the party’s exit leaves the government with a three-sea t majority. However, it was not clear whether the party may continue to support the coalition in Parliament.

It comes amid tensions between the IMF and the European Union over the terms of the Greek bailout. Having criticised the euro zone's handling of the Greek bailout earlier this month, reports emerged this week that the Washington-based IMF may withhold the payment of the next tranche of funds to Greece, following the discovery of a potential funding shortfall.

Mr Rehn said today that it was important that the next review mission is completed in July.

Ten-year Greek government bond yields rose to their highest since late April this afternoon, while Greek stocks tumbled 4 per cent.