Paul Hosford: Paschal Donohoe's exit could strain relations between Fine Gael and Fianna Fáil
When Leo Varadkar stepped down as Taoiseach and leader of Fine Gael, Pachal Donohoe was abroad at a meeting of the Eurogroup, of which he was the chair.
While allies of Simon Harris flooded the airwaves with messages of support, a small cohort held fire. They were waiting to see if Paschal Donohoe would declare. By lunchtime, Mr Donohoe had not yet signalled his intention, and Mr Harris’s momentum was undeniable.
Those who supported him accepted Mr Donohoe wouldn’t run, with some suggesting at the time he wasn’t long for Irish politics.
In the months previously, he had been linked with becoming the next managing director of the International Monetary Fund (IMF). Some speculated that missing out on that job when the IMF board endorsed its current managing director, Kristalina Georgieva, had taken the wind from his sails, though he pledged his attention was on Ireland and Dublin Central.
When he did not join the Fine Gael exodus in 2024 and was re-elected to both his seat and his role as chair of the Eurogroup of finance ministers, his importance to the coalition and his party was evident. His announcement on Tuesday that he will be departing Irish public life, however, has come as a shock to both.
Sources said knowledge of the move was limited to a small number of people until Tuesday morning, after the World Bank’s board of directors voted to confirm his appointment on Monday.
As word spread, some within government went as far as to suggest it could have long-lasting impacts for a number of reasons, the first being relations with Fianna Fáil.
When Mr Donohoe’s finance and public expenditure roles were split in 2020 and the latter given to Michael McGrath, some questioned how the two might co-exist.
The truth was that the two developed what was referred to in government circles as a “bromance” and was seen as vital to keeping the two parties on course, and his ability to maintain that relationship with Jack Chambers has been widely praised.
That Mr Chambers was the Cabinet member on Mr Donohoe’s shoulder as he announced his departure was noted by many as testament to their relationship and its place in holding coalition partners together.
How Mr Chambers coalesces with Mr Donohoe's replacement, Simon Harris, and vice-versa will be critical in the coming months as global economic headwinds pick up pace. Mr Harris saluted Mr Donohoe on Instagram with a video soundtracked by the theme from — .
It will be interesting if Mr Chambers gets the same treatment.
On top of being a relationship manager, Mr Donohoe was for many in Fine Gael its ideological North Star.
His open and often dogmatic espousal of the virtues of the centre and his careful, prudent and technocratic approach to big problems was described by some in the party on Tuesday as being "as close to Garret Fitzgerald as we've come".
One source said Mr Donohoe was "the reason people are in Fine Gael". The party losing such a big name at a point when it has already undergone so much turnover is something which Fine Gael will have to account for, perhaps even more than the Government will.
Beyond Mr Donohoe, it will focus attention on Mr Harris, now the longest-serving uninterrupted member of Cabinet at just 39. Putting himself front and centre of financial and budgetary decisions is a vote in himself, but it is also the biggest job outside of the Taoiseach's office.
Coming at a time of global uncertainty, with now two by-elections to fight, Mr Harris has added a lot to his own plate just as Mr Donohoe departs the stage.
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