Irish Finance Minister Paschal Donohoe will resign from his cabinet post and from his position as Eurogroup president after accepting a senior job at the World Bank, his spokesperson confirmed on Tuesday. The announcement is expected shortly after the government’s weekly cabinet meeting.
Donohoe’s departure marks a major shift in Dublin’s economic leadership. He has been one of the most influential figures in Irish fiscal policy for nearly a decade, steering the country’s finances through Brexit turbulence, the pandemic period, and a rapid recovery that produced some of the strongest public accounts in Europe.
Donohoe first became finance chief in 2017 and has served in one of Ireland’s two main budget portfolios ever since. He was re elected as president of the Eurogroup in July for a term that was due to run for another two and a half years, according to Reuters.
Junior Enterprise Minister Alan Dillon told national broadcaster RTE that the news represented a significant turn for the government. “It is a really important development,” he said. Dillon added that Deputy Prime Minister Simon Harris would prioritize continuity and stability as coalition leaders manage the transition.
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The Irish Times reported that Donohoe has been offered a position as one of the World Bank’s managing directors and its chief knowledge officer, a role that would place him at the center of global economic policy work.
Donohoe has long been regarded as a steady hand within successive Irish governments, helping craft budgets that reinforced the country’s fiscal reputation in Europe. His oversight contributed to Ireland maintaining strong debt indicators and large surpluses at a time when many EU states faced tighter pressures.
His exit will require coalition leaders to agree on a successor for the finance portfolio, one of the most influential roles in Irish politics. The government has not yet indicated who will take over the department after Donohoe steps down.
Donohoe’s resignation also affects policy coordination within the euro zone. His work as Eurogroup president placed him at the center of discussions among the nineteen European Union states that share the euro currency. His successor will be selected by Eurogroup finance ministers once his departure date is confirmed.
The World Bank has not yet issued a public statement on the appointment.
The government is expected to release a formal announcement later on Tuesday, setting in motion the process to fill one of the highest profile economic roles in Ireland.