The Green Party has called for a date for a general election to be set by the second half of January.
The announcement was made at a press briefing in Leinster House this morning.
Green Party leader and Minister for the Environment John Gormley said he had informed Taoiseach Brian Cowen of the decision to pull out of Government this morning and it was up to him to set the date for the poll.
At the press conference this morning, Mr Gormley criticised Fianna Fáil over the bailout plans, accusing ministers of "miscommunication" over the bailout issue. “We were given an official line ... which was essentially a mixed message,” he said.
He defended his party's decision to stay in Government with Fianna Fáil until after the Budget on December 7th, insisting it was in the national interest to ensure it was passed.
"We have always said that our involvement in government would only continue as long as it was for the benefit of the Irish people. Leaving the country without a government while these matters are unresolved would be very damaging and would breach our duty of care," he said, adding that the Irish people need political stability over the coming months.
He said the decision to pull out of Government was made on Saturday after a long series of meetings and it was unanimous within the party.
Mr Gormley said his party was proud of what had been achieved since it went into coalition with Fianna Fáil following the general election of 2007.
"Since entering government in June 2007, we in the Green Party have worked to fix and reform the economy. It has been difficult. We have taken tough decisions and put the national interest first," he said. "We cannot go back and reverse the property bubble and the reckless banking which we consistently spoke opposed. Nor can we control the market turmoil which has afflicted the euro area."
The Minister said that while it was regretful that the country was now “in the hands of the IMF”, but efforts were now being made to address Ireland's financial crisis.
"We have taken extensive measures to recognise the losses and stabilise our banking system. However, it is now clear we need further measures to give market confidence about our banks and public finances," he said.
"We are now discussing ways of restoring stability to the banking system with the support of our European colleagues and the IMF. We have to ensure that the terms of any such support are in the interests of the Irish people and the wider euro area."
In a post on Twitter this morning, Green TD Paul Gogarty said: “Can now go on record non-cryptically about a decision we made on Saturday.”
Minister for Energy Eamon Ryan said it is “in the national interest” for the Dáil to pass the December budget and for all members of Dáil Eireann to recognise that and to play their part.
"This is not a times for party politics, it is a time for national politics,” Mr Ryan said. “We are listening to people, we understand how people feel and what we want to give is a certain amount of certainty and an actual process within which that certainty politically and economically can be arrived at,” he added.
Earlier, Minister for Finance Brian Lenihan dismissed speculation the Greens may be considering pulling out of Government.
Speaking to reporters in Dublin this morning, Mr Lenihan said he had heard “no suggestions” that Fianna Fáil’s coalition partners were about to quit. The Greens had been “very, very loyal partners” in Government since the coalition was formed in 2007, he said.