ECB and EU figures want Donohoe to stay as Eurogroup president

Senior sources say that finance minister has already been approached about a second term at the helm 

 Minister for Finance, Paschal Donohoe is due to give up responsibility for the finance ministry when the Government reshuffles in December. Picture: Colin Keegan/Collins

Removing Paschal Donohoe from his position as Eurogroup president is “baffling” and “unthinkable”, European Central Bank and EU figures have told the Government.

Reports of the brewing row between Fine Gael and Fianna Fáil over the future of the post have been met with a degree of astonishment in the corridors of power in Europe, senior sources have told the Irish Examiner.

Fianna Fáil is resisting Fine Gael overtures to allow Mr Donohoe to remain in his post as finance minister after the changeover of Taoiseach in December.

However, as part of the deal in 2020 to form the Government, it was agreed that neither party could hold both the Taoiseach’s office and the finance portfolio at the same time.

Mr Donohoe’s desire for a second term as president “would not be opposed,” sources have told the Irish Examiner.

At a time of great flux in Europe, Mr Donohoe’s stewardship of the Eurogroup has been acclaimed, and he has been approached about a second term. It has been made clear that were he to signal his willingness to serve another term, he would have a clear run.

Fianna Fáil 'unhappy'

However, Fianna Fáil is decidedly unhappy at comments made by Tánaiste Leo Varadkar and reports in the media calling for Mr Donohoe to be allowed to stay in his post.

Public Expenditure Minister Michael McGrath has signalled that he, and not Mr Donohoe, will be Ireland’s representative in the Eurogroup of finance ministers after December.

Following the rotation of Taoiseach, Fianna Fáil is insisting that it will assume the finance ministry, with Fine Gael taking control of the public spending ministry which Mr McGrath now occupies.

Fine Gael figures have sought to make the case that by removing Mr Donohoe from his role as president of the Eurogroup, Ireland would be losing a position of real influence at the top EU table.

At the conclusion of his party’s think-in in Mullingar, Mr McGrath said the position will rotate, and it will be him and not Mr Donohoe who will represent Ireland in Europe.

Earlier, Taoiseach Micheál Martin made clear that the “cohesion of the Government” is based on the deal agreed in 2020, which would see both the position of Taoiseach and finance minister rotate.

“The fundamental principle underpinning the government was parity of esteem between parties. And that means in terms of the different portfolios, that if one is Taoiseach, the other party would be Minister for Finance. That was clear and that was understood at the time,” he said.