Donohoe pledges to be a bridge builder in pitch to be president of Eurogroup
FINANCE Minister Paschal Donohoe has formally nominated himself to become president of the Eurogroup, an influential role responsible for co-ordinating finance ministers across the euro area.
The nomination is likely to copper-fasten expectations that Mr Donohoe will retain his job as Minister for Finance here in the incoming government.
Papers had to be submitted by 5pm on Thursday, which meant Mr Donohoe could not wait for the formation of a new government here – expected by the weekend – before putting his hat in the ring.
He faces competition from Spain’s finance minister, Nadia Calviño, and Luxembourg’s Pierre Gramegna.
In a letter to fellow finance ministers, Mr Donohoe promised to be a “bridge builder between the EU’s north and south, east and west, ins and outs (of euro membership) and between large and small member states”.
He laid heavy emphasis on his lengthy and unbroken ministerial career since 2011 and continued re-election since 2007, an increasingly rare accomplishment in the volatile politics within EU member states.
The contest will come down to EU horse-trading and may well overlap with EU Commissioner Phil Hogan’s tilt to become head of the World Trade Organisation (WTO). Spain is also eyeing the WTO job for its foreign minister, Arancha González Laya.
Other factors will include the mix among other top EU jobs. EU Commission president Ursula von der Leyen and ECB president Christina Lagarde both belong to the European People’s Party (EPP) which Fine Gael is part of. The European Parliament president, Italian David Maria Sassoli, belongs to the EU Socialist grouping while EU Council president Charles Michel belongs to the liberal Alde group.
The Eurogroup vacancy arose after president Mário Centeno resigned as Portugal’s
‘Bridge builder between the EU’s north and south, east and west’
finance minister.
Mr Centeno, dubbed the “Cristiano Ronaldo of EU finance ministers” is highly regarded, having combined an opposition to austerity with the delivery of a budget surplus at home in Portugal.
His influence was heavily felt in the EU’s response to the Covid-19 crisis, which is heavily tilted against austerity and towards stimulus.
The Eurogroup president is essentially first among equals, chairing meetings of fellow finance ministers and interacting with the likes of the European Commission and ECB.
Spain’s Ms Calviño would be the first woman Eurogroup president and as part of a Socialist government in the European south would offer some continuity with the outgoing presidency.
Mr Gramegna, a technocrat allied to the liberal Alde grouping at EU level, may be hoping to emerge as a compromise candidate in a potentially tight race. His predecessor, Jean-Claude Juncker, held the Eurogroup presidency from 2005 to 2013, helping create what was then a new role.
The decision on who gets the job will be decided by a vote of euro area members.
Mr Donohoe is now one of Europe’s longest-serving senior minister and, if it comes together this weekend, a Fianna Fáil, Fine Gael and Green coalition means Ireland can potentially draw support from a wider range of European opinion than Fine Gael’s traditional support base in the EPP.