Paschal Donohoe to be nominated for second term as Eurogroup president

The issue has caused some controversy in government circles with some suggesting that Mr Donohoe should remain in Finance in order to keep the chair of the powerful group of European ministers. Picture: Julien Behal Photography

The Government will nominate Minister Paschal Donohoe for a second term as President of the Eurogroup, but he will serve in the role as Minister for Public Expenditure, not Finane.

The issue has caused some controversy in government circles with some suggesting that Mr Donohoe should remain in Finance in order to keep the chair of the powerful group of European ministers.

However, Fianna Fáil TDs bristled at that idea, with that party due to take the Finance portfolio when the government rotates in December.

The compromise will see Mr Donohoe nominated for a second term.

If he is successful, he will serve from the Public Expenditure brief currently occupied by Michael McGrath.

The Finance Minister, likely to be Mr McGrath, will represent Ireland.

The proposal is not without precedent. Jean Claude Juncker chaired the group while Luxembourg sent its Finance Minister to represent it.

A government statement this evening said: "The Irish Minister for Finance, will represent Ireland, and will attend Eurogroup and ECOFIN.

"If he is re-elected, Minister Donohoe will carry out his duties as President of the Eurogroup, as Minister for Public Expenditure and Reform.

"The process for election will be announced at the Eurogroup meeting on Monday (November 7th), and will be managed by the Council Secretariat."