Paschal Donohoe presents his candidacy for a second term as President of the Eurogroup

Paschal Donohoe has presented his candidacy for a second term as President of the Eurogroup of Finance Ministers.

He was first elected to the position for a two-and-a-half-year term in July 2020. His current term expires on January 13, with a vote on the new leader scheduled for December 5.

Minister Donohoe’s candidacy comes ahead of next month’s cabinet reshuffle.

Mr Donohoe is expected to switch ministerial portfolios with current Public Expenditure and Reform Minister Michael McGrath.

Following these changes, Mr McGrath will attend Eurogroup and ECOFIN meetings as Ireland’s Finance Minister.

“If re-elected, Minister Donohoe will assume his duties as Eurogroup President, Minister for Public Expenditure and Reform,” said a government statement earlier this month.

In a letter to the Eurogroup, Donohoe wrote that his top priority would be to strengthen coordination between nations to tackle rising inflation.

“Since autumn 2021, the Eurogroup has been at the forefront of assessing and analyzing the impact of rising energy prices and inflation on the economy of the eurozone,” he wrote.

“We have sought to coordinate our actions, between Member States’ national policies and between fiscal and monetary policies, to ensure that both are effective and do not add to inflationary pressures.”

He added that he would also focus on strengthening the European Banking Union, as well as presenting a discussion around the digital euro, if re-elected.

Earlier this month, Belgium’s Finance Minister Vincent van Peteghem said he “fully” backed a second two-and-a-half-year term for Mr Donohoe, arguing for “stability” and “continuity”. as the eurozone economy heads into recession.

Dutch Finance Minister Sigrid Kaag also hinted in early November that she would support her Irish counterpart, citing “the value of continuity in times of great economic uncertainty”.

The President of the Eurogroup is elected by a simple majority of at least 10 votes.

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