Now the application is official – and so far there are no rivals: Irish Finance Minister Paschal Donohoe has in a two-page letter to his counterparts from the other euro countries that he would like to serve a second term as President of the Euro Group. This is the body of 19 finance ministers from common-currency states, and Christian Democrat Donohoe has chaired the meetings as president since summer 2020. A term of office lasts two and a half years, so on December 5 the ministers are to vote on who will be the future president. A simple majority is enough. Applications are possible until next Thursday; so far, however, no other politician has expressed an interest.
The 48-year-old Donohoe, whose first name is pronounced “passkel”, writes that his “top priority” will be to increase coordination among euro governments in the fight against inflation. The finance ministers should show “more ambition” here. In recent months, the 19 ministers have repeatedly discussed how the state can help citizens and companies to combat high energy prices without such support also fueling inflation. Finally, when demand for goods and services increases in a country because of government programs, it tends to raise prices. From January, 20 ministers will have a say as Croatia adopts the euro.
However, Donohoe will step down as Treasury Secretary in the coming weeks and take on a different portfolio. This is what the Irish government’s coalition agreement provides for. Ireland will then be represented in the Eurogroup by his successor, believed to be Michael McGrath. Donohoe could still serve as president, the independent 21st politician on the panel. This would be unusual, but it has happened before: Jean-Claude Juncker led the Eurogroup from 2009 to early 2013, although the Luxembourger had previously resigned from the post of finance minister.