Donohoe quits as Irish Finance Minister for World Bank job

Paschal Donohoe has said it was a “privilege” to serve Ireland as he stepped down as Finance Minister to take up a role with the World Bank.

Mr Donohoe said he was “departing from public life in Ireland” to take up the second most senior position in the World Bank, as managing director and chief knowledge officer at the Washington DC-based institution from Monday.

He will also stand down from his position as a Fine Gael TD for Dublin Central this week.

The departure will spark a by-election in the constituency as well as the need for a reshuffle within the coalition Government made up of Fianna Fail, Fine Gael and some independents.

In a speech at Government Buildings, Mr Donohoe said: “My election to Dail Eireann 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 20 years of public life, my goal, always, has been to make a difference to our country, for the benefit of our people.”

Mr Donohoe, who has also been the president of the Eurogroup since 2020, said his aim had been to “build a better and fairer Ireland through careful management of our economy and public finances”.

He said: “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.”

He added: “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.”

Fine Gael leader and Tanaiste Simon Harris said it was a “moment of sadness” for his party.

He added that he will announce a number of changes to the Fine Gael ministerial team later on Tuesday.

Mr Donohoe, 51, has been a TD for Dublin Central since 2011.

Mr Harris said Mr Donohoe was moving to a position of “significant international standing”.

He added: “It is a testament to Paschal’s integrity, expertise and the high esteem in which he is held both at home and abroad.

“While I always knew this day would come, it is a day of mixed emotion.

“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.”

Mr Donohoe has also served as minister for European affairs, minister for transport and minister for public expenditure and finance.

Mr Harris added: “Throughout his tenure, Paschal has exemplified the highest standards of public service.

“His calm and capable stewardship helped guide Ireland through some of the most challenging periods in our recent history, including: Brexit, the Covid-19 pandemic, and a period of global economic uncertainty.

“His prudent management of the public finances has underpinned Ireland’s recovery and growth, ensuring that our economy remains resilient and our society continues to prosper.”

The Tanaiste concluded: “Later today, I will announce a number of changes to the Fine Gael ministerial team.”

Taoiseach and Fianna Fail leader Micheal Martin described Mr Donohoe as an “honourable and committed colleague”.

He said: “I always worked very well with Paschal, and we cooperated closely throughout the Covid pandemic.

“Together, the innovative approaches adopted during the pandemic underpinned the Irish economy, as well as during many other challenges, such as Brexit and the invasion of Ukraine.”