Fianna Fáil leader Micheál Martin has claimed Taoiseach Enda Kenny told an untruth in his response to the Greek prime minister.

Mr Kenny told Alexis Tsipras Ireland had left its bailout programme by pursuing pro-growth policies and not by increasing income tax, VAT and PRSI.

Mr Martin said this was not the case and said one of the first acts of the Fine Gael/Labour Government was to hike VAT and to get rid of the PRSI exemption.

Mr Martin said: “It is an extraordinary statement to make which every citizen in the country knows is untrue.

“That robs the Taoiseach of any credibility when he says things like that. I don’t know what it was about.

“What the Taoiseach is saying is untrue.”

Mr Martin said this was an “incredible” response to the Greek Prime Minister and accuses the Taoiseach of being out of touch.

The Fianna Fáil said the situation in Greece was a worry for every single European citizen.

Earlier, Mr Kenny criticised the Greek government for asking for an extension to its bailout “at the last minute”.

The Greek prime minister wrote to other EU leaders asking for a short extension to the bailout until after Sunday’s referendum.

The Taoiseach said this should have been raised six months ago.

He said he had “calls from other European leaders” about this but the measure couldn’t have passed through parliaments in time.

Speaking on his way into the Cabinet meeting on Tuesday morning, Mr Kenny said: “All of this could have been raised six months ago. It came at the very, very last minute.

“The opportunity is still there to go back to the negotiating table and work it out. I hope they still can.”

The Taoiseach said he has great empathy with the Greek people.

He said all “disputes end at the negotiating table” and that an opportunity was still there.

The Economic Management Council met on Monday night to discuss the potential consequences of a Greek default.

Mr Kenny, Tánaiste Joan Burton and the two Finance Ministers Michael Noonan and Brendan Howlin held a top level meeting with officials on the possible fall out if Greek leaves the euro zone.

Mr Howlin said they were briefed by the Governor of the Central Bank Patrick Honohan and officials from the National Treasury Management Agency.

He said the situation was fluid and the euro zone was now entering “unchartered waters”.

Mr Howlin said: “It is unlikely today that Greece will pay the IMF payment that is due.

“In technical terms that’s a default. There are implications for that.

“As you have seen over the past number of weeks, the European institutions will try every mechanism to give space to Greece to continue its involvement in the euro zone.”

Mr Howlin said the decision of the Greek people in this weekend's referendum will be respected by everyone in Europe.