Gabija Gataveckaite and
Jessica Lawrence,BBC News NI
Reuters
Paschal Donohoe will leave government for a new role at the World Bank based in Washington DC
The Irish Finance Minister, Paschal Donohoe, is to step down from government to take on a new banking role.
Donohoe is set to become the managing director and chief knowledge officer of the World Bank in Washington DC – the largest development bank in the world.
He is expected to step down from his position later on Tuesday, and will stand down as TD (member of parliament) for Dublin Central later in the week.
He previously served as the Republic of Ireland’s finance minister between 2017 and 2022, before being re-appointed in January 2025.
The 51-year-old is also expected to stand down as the chairman of the Eurogroup of finance ministers.
His resignation will spark a by-election.
Harris says Donohoe departure a ‘day of mixed emotion’
The Tánaiste (Irish deputy prime minister) and Fine Gael leader Simon Harris confirmed Donohoe’s resignation, and stated that his new job is one of “significant international standing”.
“While I always knew this day would come, it is a day of mixed emotion,” Harris said in a statement.
“It is a moment of sadness for the Fine Gael family, but it is also a moment of great pride for Ireland. Paschal’s appointment reflects the regard in which he is viewed on the global stage.”
PA Media
Simon Harris praised his colleague’s “exceptional judgement and patience” as finance minister
Harris also said Donohoe has left a “undeniable legacy”, and that he has been integral to the party’s success over the past 10 years.
Speaking about Donohoe on a personal level, the tánaiste said he has been a source of “wise counsel and a valued friend”.
“I will miss his good humour on the good days, the optimism on the hard days, and his unrelenting support on the worst of days.
“On behalf of Fine Gael, and the government, I want to thank Paschal Donohoe for his exemplary service.
“This country is all the better for his service.”
Who is Paschal Donohoe?
A former Trinity College Dublin graduate, Donohoe started his political career in Dublin City Council, before becoming a member of Seanad Éireann (the upper house of Irish parliament).
In 2011, he was elected to Dáil Éireann (lower house of Irish parliament) as a Fine Gael TD for Dublin Central.
Throughout his tenure he has held many ministerial positions, including minister of state for European affairs, before being promoted to a cabinet position as the Republic’s minister for transport, tourism and sport.
Following the 2016 general election, Donohoe was made minister for public expenditure and reform for four years.
In October 2017, he presented his first budget as finance minister which included increases in social welfare schemes and a multi-million euro increase for health spending.
Analysis: From domestic politician to major international player
There has long been talk Donohoe had his eyes set on bigger things.
But this would not be being the leader of his party, Fine Gael, in the hopes of one day becoming taoiseach (Irish prime minister).
This time 12 months ago, it looked like Donohoe’s future progress was somewhat uncertain.
In the lead up to last November’s general election it was widely speculated he would not be running to keep his seat in the Dublin Central constituency.
Instead, there was expectation in political circles he would take up as the head of the International Monetary Fund (IMF) in Washington.
As chairperson of the Eurogroup of finance ministers, Donohoe has built contacts with top international leaders – but the top job in Washington slipped away as the incumbent remained for a second term.
PA Media
Public Expenditure Minister Jack Chambers and Finance Minister Paschal Donohoe presented the latest budget last month
Some may have eyed Donohoe as possible party leader and perhaps taoiseach, but he didn’t make moves when Leo Varadkar announced he was stepping down in March 2024.
He ran in last year’s election and kept his seat as a TD, going onto serve yet again as finance minister.
But he has now eventually landed an international role it was long expected he would one day seek.
As number two at the World Bank, Donohoe’s career will switch from domestic politician to major international player.
His resignation from the Irish government is also a monumental change.
It means the most senior cabinet ministerial position – apart from the positions of taoiseach and tánaiste (Irish deputy prime minister) – is now up for grabs.
As the position is held by the Fine Gael ruling party, one of the senior ministers in that party is now set for elevation.
Early speculation on who may take over the finance brief also includes Tánaiste Simon Harris, with his foreign affairs and trade portfolios moving to Enterprise Minister Peter Burke.
Jennifer Carroll MacNeill, who served as junior finance minister and seen as a possible future Fine Gael party leader, is another one of the names being rumoured with a possible promotion.
Reuters
Gerry ‘The Monk’ Hutch came close to winning a seat in Donohoe’s constituency in last year’s Irish general election
It is a big loss for Fine Gael as they lose yet another heavyweight.
Donohoe often served as a sounding board for party leaders when they were faced with any difficult decisions.
His new role will trigger a by-election in Dublin Central which may be held on the same day in Galway West, triggered by the election of Catherine Connolly as Irish president in recent weeks.
The Dublin Central constituency was at the heart of extensive media coverage in last year’s general election as Gerry ‘The Monk’ Hutch almost got elected.
In 2023, Hutch was acquitted of a high-profile murder when a man was shot dead at a boxing weigh-in event.
A judge has described him as having been involved in serious criminal conduct in the past.
Traditionally, ruling government parties are punished at by-elections, so keeping the seat in the key constituency at the heart of Dublin will be a challenge for Fine Gael.
