Finance minister, Paschal Donohoe, is leaving government to take up a senior leadership position at the World Bank, creating an unexpected opening at the top of the Eurogroup, which he has chaired since 2020.
Donohoe secured a third term as Eurogroup president in July. While the role was once central during the Eurozone debt crisis, it has more recently focused on aligning fiscal policy across countries in the single currency area. His early exit means Eurozone members will now begin the process of selecting a successor ahead of schedule; his current term had been set to run until 2027.
During his time leading the group, Donohoe helped steer the shared economic response to the Covid-19 downturn and pushed forward progress on contentious issues such as completing the banking union. However, ahead of his reappointment this summer, Germany, France, Italy, Spain, and the Netherlands jointly warned that the next presidency would face significant macroeconomic and geopolitical challenges, calling for stronger direction from the body.
In a statement, Donohoe said it had been an honour to serve and that he aimed to bring the same level of commitment to his new role at the World Bank. He will take up the post of managing director and chief knowledge officer in Washington.
The Irish government is expected to name a new finance minister from Donohoe’s Fine Gael party, with an announcement due later on Tuesday. Donohoe has been closely involved in the last decade of Irish budget planning and had long been viewed as a candidate for an international post, having previously expressed interest in leading the IMF.
Speech by Minister Paschal Donohoe (18th November 2025)
My election to Dáil Éireann and the opportunity to serve in the Government of Ireland have been the greatest of honours, for which I will always be grateful to the people of Dublin Central and beyond.
In more than twenty years of public life, my goal, always, has been to make a difference to our country, for the benefit of our people. I have served in four different governments, since July 2014, with much of this time as Minister for Finance and Minister for Public Expenditure.
In these offices my aim has been to build a better and fairer Ireland through careful management of our economy and public finances. I have done my utmost to discharge this duty in the long-term interests of our people.
Through 10 Budgets I played my role in supporting our economy and people through the challenges of Brexit, the Covid pandemic, the reform of international taxation and the effects of soaring inflation.
When I began this work:
- Our deficit was 2.1 billion euro. In Budget 2026, we project a general government surplus of 8.4billion euro, with 24 billion euro due to be saved in our two national wealth funds by next year;
- 2.13 million people were working in our economy in 2016. That now stands at 2.8 million; that means six hundred and eighty-one thousand more people at work; and
- Debt as a share of our national income was at 116%. It is now at 67%.
This is due to the people of Ireland, to their work, to their resilience. But political decisions also matter, and I was privileged to play a part in making these decisions.
A positive force in this progress is our engagement with other countries, through trade, friendship and diplomacy.
That is why it has also been a great honour to serve as President of the Eurogroup since 2020. This work has allowed me to see, first-hand, the immense value and benefit of our membership of the European Union.
The importance and benefit of this international cooperation has been a key theme of my public life.
The opportunity has now presented itself for me to further contribute to this cooperation at a different level. I will soon be taking up the role of Managing Director and Chief Knowledge Officer of the World Bank Group, based in Washington DC.
I am therefore departing from public life in Ireland.
I have informed my Party Leader and Tánaiste, Simon Harris, of my intention to resign as Minister for Finance, effective from today. I will also tender my resignation to Dáil Éireann later in the week.
The importance of international cooperation in meeting the needs of the most vulnerable and rising to the global challenges of our time has never been greater. The mission of the World Bank is to ‘end extreme poverty and boost shared prosperity on a liveable planet’.
The Bank plays a leading role in our world through the development of policies and financial supports that enhance economic resilience and growth for so many.
I want to make the case for this work and to play a role in making this cooperation as effective as possible. This post is an opportunity to do so and to continue public service, in a different way.
This would not have been possible without the support of many. So, some brief words of acknowledgement.
I want to thank the communities of Dublin Central. I have not always made easy arguments to them and to the country. But their support in electing me and then re-electing me on 3 occasions humbled me. Some of those elections were really demanding but the people stood by me and I will always be so grateful.
Thank you to the elected and non-elected members of Fine Gael, particularly in Dublin Central. I did not just have colleagues with whom I served, or volunteers with whom I campaigned at election time, I made many valued friends. I was always proud to represent my Party and thank all members for their support and encouragement for so long.
I want to particularly acknowledge the Tánaiste, Simon Harris TD. His energy and vision made a decisive difference to Fine Gael at a critical time. I have been proud to work with and for him and know that in a few short years he will again lead our Government and country with distinction and great effect.
I also want to acknowledge the personal and working relationships that I have had with many in Fianna Fáil. Micheal McGrath and Jack Chambers were exceptional colleagues and partners in many tough moments. It was great to work with them and I wish each of them the very best.
As I do Taoiseach Micheál Martin; an honourable and deeply committed public servant who leads the Government of our country with skill and determination.
To the public servants within the Departments of Finance and Public Expenditure. Their expertise and dedication are of the highest standard and I count myself lucky to have been their Minister.
Working alongside me has been my own small team, engaging with constituents and advising me on my ministerial work. Their loyalty and professionalism have been a constant through the good days, and the not so good days. This is a day of great personal change for them also. I cannot thank them enough for all they have done.
Also, to the Members of An Garda Síochána, with whom I have worked closely, who have supported me in carrying out my daily duties at all times. Their work and professionalism has been greatly valued.
I know there is still much progress we have to make in our great country, especially with regard to building more homes, tackling climate change and supporting those with disabilities.
I know that there are still so many needs we must better meet. The desire and ambition to do this has been my driving force for every day that I have held Office.
It is my belief that we should be able to acknowledge what is still to do, while making the case for what has already been done; the progress we have made.
This is why I have repeatedly made the case for the political centre in Irish and European politics. A centrist approach has been critical to the economic and social development of our country. I am acutely aware of our challenges, however, it is still the best framework in which to make progress and to pursue the long-term wellbeing of Ireland and Europe.
This is the case that I have made. In so doing, it has been a privilege to serve my country as a public representative over the past 20 years. As a member of Dáil Éireann and of the Government of Ireland, I did my best every single day.
I want to now do the same in the work of the globally vital institution that I will join, at a time of great change in our world.
