Paschal Donohoe is to step down as Minister for Finance and take up a position at the World Bank, the Cabinet has been told.
It is understood that Mr Donohoe (51) has been offered the role of senior managing director and chief knowledge officer and he has informed Taoiseach Micheál Martin and Tánaiste Simon Harris that he will accept it.
He will step down from his position as Minister for Finance on Tuesday and resign as a TD later this week.
The board of the bank, the largest development bank in the world, approved the appointment on Monday night.
RM Block
Mr Donohoe, a Fine Gael TD for Dublin Central, will also step down as President of the Eurogroup, the group of finance ministers of EU countries that use the common currency.
It is understood the Taoiseach and Tánaiste will announce a minor reshuffle later on Tuesday, with speculation suggesting that Mr Harris himself will take the finance portfolio.
This would create a vacancy in the Department of Foreign Affairs, which could be filled by Fine Gael deputy leader and Minister for Education Helen McEntee or Minister for Enterprise, Tourism and Employment Peter Burke.
The Government will also face another byelection, in Mr Donohoe’s Dublin Central constituency, that will have to take place within the next six months.
Mr Donohoe has been Minister for Finance since the Government was formed earlier this year, and before that served as Minister for Public Expenditure and Minister for Finance in the previous Government.
He has alternated in the finance and public expenditure roles since 2016.
He has played an indispensable role behind the scenes in maintaining the relationship between Fine Gael and Fianna Fáil in the last decade, and his departure represents a significant blow to the Coalition, at a time when it is under pressure on several fronts.
Having served as a TD since 2011 and a Cabinet minister since 2014, Mr Donohoe has been tipped for an international role for some time.
Head of the Eurogroup since 2020, he was previously considered a possible candidate to head the International Monetary Fund.
The role at the World Bank is based in Washington DC and is one of the highest profile appointments in international development finance. The bank helps developing companies with loans and advice.
However, his departure will leave a gaping hole in the Government here, where he played a vital role in shaping fiscal and economic policy, but also in agreeing policy across the board in a relationship between the two main parties that is sometimes difficult behind the scenes.
He formed a strong partnership with the former Fianna Fáil finance and public expenditure minister Michael McGrath, and subsequently with Mr McGrath’s successor Jack Chambers.
Minister of State for Migration Colm Brophy TD has expressed his “delight” at the appointment.
Speaking on RTÉ Radio’s Today with David McCullagh show, Mr Brophy described Mr Donohoe as one of his longest friends, someone he had known since his teen years.
The appointment was a “wonderful recognition” of Mr Donohoe’s abilities, he said.
“I’m absolutely delighted for Paschal. Pascal is one of my longest friends in politics. I’ve known him for years and years since we were teenagers effectively in the youth movement of Fine Gael,” he said.
“I think it’s a wonderful recognition for him, his ability, his standing, his respect internationally as well as nationally. I’m absolutely delighted for him. And obviously it’ll lead to some interesting times for us now on the national level.”
