Donohoe to 'convince' ministers to allow McGrath attend Eurogroup meetings

Minister for Finance Paschal Donohoe said he has had a positive response from eurozone finance ministers to his bid to win a second term as president of the Eurogroup. Picture: Brian Lawless

Paschal Donohoe has said he and the Government must convince Europe’s finance ministers to allow him and Michael McGrath both attend Eurogroup meetings after December.

Mr Donohoe said he would be explaining to his colleagues how the proposal to have him remain as chair, while also having Mr McGrath attend meetings as Irish finance minister, would work.

European Finance Ministers will elect a new President of the Eurogroup on December 5, with nominations closing on November 24.

Speaking after the meeting, Mr Donohoe said he was delighted to say he had the backing of the Government to seek re-election and therefore was putting his name forward.

Speaking at the same press conference, EU Economy Commissioner Paolo Gentiloni warned that the Eurozone will drift into recession as the continent combats low consumer and business sentiment and high inflation.

He warned that a difficult winter lies ahead.

“It is clear from various indicators that a contraction is possible, probable. We should work to avoid a prolonged period of recession,” he said.

Meanwhile, Mr McGrath is due to take over the finance portfolio in December as part of a Cabinet reshuffle.

The Government has said that if he was re-elected, Mr Donohoe would carry out his duties as president of the Eurogroup as Minister for Public Expenditure and Reform, which is technically a finance ministry.

No legal impediment

The Government has sought legal advice on the issue and it is understood the Government has been told there is no legal impediment to having two ministers attend Eurogroup meetings, although it could be politically tricky.

There is a precedent in that the former Luxembourg prime minister Jean-Claude Juncker was president of the Eurogroup and his finance minister also attended.

Dutch finance minister Sigrid Kaag expressed support for Mr Donohoe saying: "We appreciate the role that Paschal Donohoe has performed so far immensely. It's also important we consider the value of continuity in times of great economic uncertainty and potential crisis, hence his experience, the way he delivers on his role, we value immensely."

Belgian finance minister Vincent van Peteghem said Mr Donohoe was "the right man in the right place" for the past two and a half years.

I'm also sure in the coming two and a half years he will also be a good president of the eurogroup. 

"I think it’s important that in very uncertain times as we have today that we have some stability and we have continuity in this position. So I fully support his presidency," he said.

Sinn Féin's finance spokesperson Pearse Doherty has said the only people interested in Mr Donohoe's attempt to remain as president of the Eurogroup are in Fine Gael and Fianna Fáil.

He told RTÉ News: "The reality is that the only people interested in this are senior members of Fine Gael and Fianna Fáil who are carving out jobs among themselves."

The TD for Donegal added: "We wish him well, but what people want is not a rotation of Finance Minister but a new government that will seriously tackle the cost of living crisis."

Meanwhile, Labour's Ged Nash has claimed that Mr Donohoe's bid to be re-elected as Eurogroup president has "taken up far too much time and political energy."