Main Points
- 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 has been offered the role of managing director and chief knowledge officer – effectively the number two position at the bank.
- He will step down from his position as Minister for Finance on Tuesday and resign as a TD later this week.
- It is understood the Taoiseach and Tánaiste will announce a minor reshuffle later on Tuesday.
Cormac McQuinn – 3 minutes ago
Paschal Donohoe is not known as a golfer but one reported perk for World Bank staff would get the chop if the Trump administration has its way
The New York Post reported last month that US Treasury Secretary Scott Bessent has urged the International Monetary Fund (IMF) to sell a golf club it owns in Maryland after it reported that IMF and World Bank staff qualify for discounted memberships.
It reported that initiation fees at the IMF-owned golf course — which range from $12,000 to $20,000 — are automatically waived for all employees on the payroll of the two institutions – though they do pay monthly dues to play there.
Cormac McQuinn – 21 minutes ago
There has not been universal praise for Paschal Donohoe as he prepares to depart for his new World Bank job in Washington.
Barra Roantree, an Assistant Professor in Economics at Trinity College Dublin (TCD) argued: “Despite his rhetoric, Minister Donohoe’s tenure has been characterised by a recklessness reminiscent of Charlie McCreevy during the Celtic Tiger. He has overseen rapid increases in expenditure alongside deep cuts to taxes, especially before elections. All this was facilitated by booming corporation tax receipts which cannot last forever.”
Meanwhile, long-time tax justice campaigner Sorley McCaughey said: “To many tax justice campaigners around the world, Paschal Donohoe was the embodiment of Irish resistance to efforts to reform the global financial system in a way that would allow developing countries to plot their own development path financed by their own resources. The irony of his appointment will not be lost on those very same developing countries that in his new role he will be expected to support.
“For many, the appointment of a Minister for Finance of a country that many people outside of Ireland consider to be a tax haven, will also be further evidence of the often problematic role the World Bank plays in global development.”
Cormac McQuinn – 37 minutes ago
Here is some more re-shuffleology from Jack Horgan-Jones: Helen McEntee is also expected to be appointed as Minister for Defence if, as expected, Tánaiste Simon Harris vacates that role and the job of Minister for Foreign Affairs to take over from Mr Donohoe at Finance. This will mark the first time in the history of the State that there has been a woman minister in either foreign affairs or defence.
Speculation as to her successor as Minister for Education is narrowing on Galway West’s Hildegarde Naughton, currently a super junior minister in the Department of Children and a former Government chief whip.
Given Fine Gael is losing a Dublin TD at ministerial level, Dublin Rathdown’s Neale Richmond and Dublin Mid-West’s Emer Higgins are being mentioned in dispatches as well.
News of Donohoe’s departure has been circulating within a tight group at the top of Government in recent weeks.
After he was linked to the top job at the IMF in March 2024, senior party figures always felt there was a possibility that he could leave before the next general election. However, he resolved to run again in last November’s contest.
While it had been hoped that Donohoe would not leave until the changeover in the Taoiseach’s position, such roles as that with the World Bank do not come up frequently or necessarily at opportune times.
Cormac McQuinn – 41 minutes ago
Who could run in the Dublin Central by-election?
The mini-reshuffle is believed to be imminent but another consequence of Mr Donohoe’s departure will be a by-election in Dublin Central.
It could be some time away as by-elections do not have to be called for as long as six months after a TD has resigned.
But the four-seat Dublin Central was a fascinating constituency in the last general election and may well prove so again.
There was drama in that election as Labour’s Marie Sherlock took the final seat on the 11th count, edging out veteran gangland figure Gerard ‘The Monk’ Hutch who put in a strong performance that shocked the political establishment. Could he be interested in running again?
The current Lord Mayor of Dublin Ray McAdam is a close ally of Mr Donohoe and he represents the North Inner City on Dublin City Council. The Fine Gael councillor would be seen as a potential successor to the outgoing TD.
Sinn Féin leader Mary Lou McDonald topped the poll in Dublin Central in the general election last year though her running mate Janice Boylan did not fare so well as she was eliminated after the second count. The constituency is Ms McDonald’s backyard and with the party leader not in the race herself, a Sinn Féin candidate would be expected to do well.
Fianna Fáil Senator Mary Fitzpatrick has made a number of Dáil bids in the constituency but is yet to get over the line. Could the by-election be her chance?
Of course all of this is highly speculative with the by-election not likely to happen for months.
Social Democrats Dublin Central TD Gary Gannon said the Social Democrats party was ready for a by-election in the Dublin Central constituency in the wake of the resignation of Mr Donohoe.
They have three local councillors, Cat O’Driscoll Daniel Ennis, Karl Stanley, who Mr Gannon described as “fairly high profile potential candidates”, as well as some “interesting” people among the party’s members.
He told RTÉ Radio: “The selection process for the Social Democrats in Dublin and Central in and of itself will be highly competitive, I promise you.”
Cormac McQuinn – 1 hour ago
Speculation mounting on mini-reshuffle of ministers
While Mr Donohoe’s departure has not yet been officially announced, speculation is already mounting as to how the resulting mini-reshuffle of ministers will play out.
Just who will take over as Minister for Finance – a job only second in importance to the Taoiseach and Tánaiste in terms of power and prestige in the Government?
As Jack Horgan-Jones reports the early expectation is that Tánaiste Simon Harris will take over as Minister for Finance. That would open up his position as Minister for Foreign Affairs – with early chatter heavily backing Minister for Education and Fine Gael deputy leader Helen McEntee for the job.
However, Minister for Enterprise Peter Burke is also seen as a possible contender. A promotion to a full Cabinet position is also on the cards for a Fine Gael TD – with favourites likely to be drawn from current ministers of state.
The mini-reshuffle could happen as early as today.
Cormac McQuinn – 1 hour ago
Some of Paschal Donohoe’s Fine Gael colleagues have been on the airwaves wishing him well as Vivienne Clarke reports.
Minister of State for Migration Colm Brophy TD has expressed his “delight” at the appointment of Mr Donohoe to a senior position in the World Bank. 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.
Later on the same programme Minister of State for Small Business Alan Dillon has described the news of Mr Donohoe’s new job as “a really significant development. “Can I firstly acknowledge Paschal’s exceptional job as Minister for Finance.
As for what will happen in Government, Mr Dillon said: “It’s now a matter for the party leaders and I know you know Tánaiste Simon Harris has always emphasised stability and continuity in Government and I know he will approach this transition with that same focus”.
He added: “Paschal’s contribution to Government and to Ireland’s economic success has been outstanding and I want to wish him every success in his new global role.”
Cormac McQuinn – 1 hour ago
There has been some bombshell news from Government Buildings this morning as it emerged that Minister for Finance Paschal Donohoe is to step down as Minister for Finance and take up a position at the World Bank.
As Political Editor Pat Leahy reports, it is understood that Mr Donohoe has been offered the role of managing director – effectively the number two position at the bank.
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.
There will be a reshuffle of Fine Gael ministers and a by-election in Mr Donohoe’s Dublin Central constituency.
