Greek regional development minister Haris Pamboukis has resigned after failing to re-establish a separate shipping ministry.

Pamboukis had argued that shipping, which accounts for about a fifth of the Greek economy, has a vital role to play in encouraging growth in a recession-hit country.



The close aide of prime minister George Papandreou wrote to his boss, saying: "For two months I have tried to re-establish a sector vital to the nation.