Dublin (AFP) – Pascal Donohoe, head of the Eurogroup panel of eurozone finance ministers, quit Tuesday to take up a senior job at the World Bank. He confirmed in a statement also his resignation as Ireland’s finance minister ahead of beginning his new role at the Washington-based institution on Monday.
Donohoe took the helm in 2020 at the informal Eurogroup, whose chief carries weight in Brussels policy-making. The 51-year-old was among the influential voices in Brussels, alongside EU chief Ursula von der Leyen and European Council President Antonio Costa. Donohoe said the term as Eurogroup head allowed him “to see, first-hand, the immense value and benefit of” Ireland’s membership of the European Union.
“Working with colleagues in the Eurogroup, we confronted many challenges, including the Covid pandemic, (and) the effects of soaring inflation,” he added. Donohoe had been viewed as a possible candidate to lead the International Monetary Fund, a job that has only ever gone to a European. The World Bank, the IMF’s twin organization also based in Washington, helps developing countries with loans and advice.
“The importance of international cooperation in meeting the needs of the most vulnerable and rising to the global challenges of our time has never been greater,” Donohoe said Tuesday. In a separate statement, World Bank President Ajay Banga said the Irishman “brings more than twenty years of public service, and knows firsthand how good policies can unleash private capital mobilization, boost growth, and generate jobs”.
Donohoe departs the Irish government as its most experienced minister, delivering a fresh blow to the centrist governing coalition. Its candidate in last month’s presidential election suffered a landslide defeat to opposition-backed leftwinger Catherine Connolly.
Speaking to reporters in Dublin on Tuesday, Donohoe said “a centrist approach has been critical to the economic and social development of” Ireland. “It is still the best framework in which to make progress and to pursue the long-term wellbeing of Ireland and Europe,” he added. The government now faces a series of by-elections in the coming months, while Donohoe’s party leader Simon Harris — also deputy prime minister — will have to find a new finance minister.
© 2024 AFP
