Varadkar and McGrath clash over Eurogroup president role

Public Expenditure Minister Michael McGrath and Tánaiste Leo Varadkar are at odds over who will represent Ireland at the Eurogroup of finance ministers. Picture: Sasko Lazarov / RollingNews.ie

The public expenditure minister and the Tánaiste have clashed over Paschal Donohoe’s position as president of Eurogroup in a row that suggests mounting tensions between the Coalition partners.

Michael McGrath slapped down a suggestion by Leo Varadkar that Paschal Donohoe can remain in his role as president of Eurogroup even if he is not finance minister.

There can only be one Irish representative at the Eurogroup table, which is made up of finance ministers across the eurozone.

Mr McGrath and Mr Donohoe are expected to rotate their portfolios in December when the roles of Taoiseach and Tánaiste will switch over between Micheál Martin and Leo Varadkar.

Mr Varadkar said today that Mr Donohoe does not have to be finance minister to remain in the position.

However, Mr McGrath has come out strongly against the Tánaiste’s comments and said whoever is finance minister should represent Ireland at Eurogroup.

If this was not the case, it would “represent a significant diminution in the role of the minister for finance.”

Mr McGrath said Mr Varadkar’s suggestion also “raises a number of important questions”.

Public Expenditure Minister Michael McGrath is in line to become minister for finance in the Coalition Government. Picture Leah Farrell/RollingNews

Speaking on RTÉ’s This Week programme, Mr McGrath questioned who would represent Ireland at the Economic and Financial Affairs Council (ECOFIN) and who would answer to the Dáil in respect of matters to do with European economic policy.

“I think it is important to note that the minister for finance is the person who represents the country at Eurogroup," said Mr McGrath.

Not to have that continue would represent a significant diminution in the role of the minister for finance.”

And of Mr Varadkar’s views on the matter, Mr McGrath said: “And it does sound like tantamount to a division of the Department of Finance, which is not something that we would agree with.”

He said the issue should be discussed privately and the Tánaiste should be discussing it directly with the Taoiseach.

Tánaiste Leo Varadkar wants party colleague Paschal Donohoe to maintain his role as president of Eurogroup. Picture: Gareth Chaney/Collins

Mr Varadkar argued that Luxembourgish politician Jean-Claude Juncker served as president of Eurogroup while prime minister and treasury minister.

Speaking on the same radio programme, Mr Varadkar said: “Where a small country like Ireland has those key roles, I don't think we should give them up lightly.”

He argued that keeping Mr Donohoe in the position was in the interests of the country.

He said: “I'm saying Paschal Donohoe can stay on as president of the Eurogroup without being the Irish minister of finance.

“It's not as simple as that, of course, because the decision is ultimately a decision of the eurozone finance ministers, not us.

But we as a Government can hold that position for Ireland if we choose to, and he doesn't have to be Irish finance minister.

“That's what, I think, will be in the interest of the country."