Updated 17.40

Eamon Gilmore has resigned as leader of the Labour party.

He will stay on until a successor is elected and says he wants to contest the next election.

He says he takes full responsibility for Labour's disastrous performance in the local, European and Dáil by-elections.

The Labour Party has only taken 50 local seats, while no candidates are expected to make it to Europe.

Mr Gilmore said he made his decision last night and believes his party will be better able to renew itself under a new leader.

He will stay on as Tánaiste and leader of the Labour Party until a replacement has been elected in the coming weeks.

He said the party had suffered for the difficult decisions they had had to take on behalf of the country, but he said he would make those same decisions again:

 

The Taoiseach has thanked Eamon Gilmore for what he says was his outstanding service to the country, as Tánaiste and Foreign Affairs Minister.

He described him as a man of integrity, courage and conviction.

Enda Kenny's also thanked him on a personal level, saying they have worked well together.

And he says he is certain that his decision will not cause instability in the government:

Labour's deputy leader Joan Burton has in the past said she wants to lead the party.

But as she left the Department of Foreign Affairs after the announcement she remained tight-lipped:

Colleague Pat Rabbitte told Newstalk's George Hook that being leader during a difficult economic period was never going to be an easy task, and he's defended the Tánaiste: 

Replacement process

Eamon Gilmore has confirmed he will stay on as party leader until a new member is appointed.

That process begins tomorrow, when nominations open. Nominations will close on June 3rd.

If an election is needed it will be held by postal ballot before July 4th. Each individual member will be given one individual vote. All party members can vote.

Motions of no confidence

Earlier it emerged that Deputy Gilmore was to face two motions of no confidence from the party. 

A number of Labour members expressed their discontent with the party's role in government, outgoing MEP Phil Prendergast openly voicing her wishes for the Tánaiste to be removed as party leader. And seven TDs and one Senator submitted a motion to Labour's Parliamentary Party meeting on Wednesday night.

The motion has been signed by TDs Ciara Conway, Dominic Hannigan, Michael McNamara, Ged Nash, Derek Nolan, Aodhán Ó Ríordáin and Arthur Spring, as well as senator John Gilroy.

It meant the Tánaiste would have faced a potential vote on whether to remove him as party leader.

He would then have faced a separate motion of no confidence at the party's Central Council, in coming weeks.

Michael McNamara led calls for the leader to go yesterday, but later said the party's whole front bench should be replaced.