Politics

Paschal Donohoe’s prospect of International Monetary Fund top job slips away

EU finance ministers are set to endorse the head of the IMF, Bulgarian Kristalina Georgieva, for a second term

Paschal Donohoe had been touted as a possible successor for the IMF role and is understood to have held preliminary discussions with figures in Washington late last year. Photograph: Niall Carson/PA Wire
Paschal Donohoe had been touted as a possible successor for the IMF role and is understood to have held preliminary discussions with figures in Washington late last year. Photograph: Niall Carson/PA Wire
Pat Leahy
Mon Mar 11 2024 - 12:02

Minister for Public Expenditure Paschal Donohoe is likely to remain in his job until the next election as EU finance ministers are set to endorse the head of the International Monetary Fund (IMF), Bulgarian Kristalina Georgieva, for a second term.

Mr Donohoe had been touted as a possible successor for the role at the IMF, one of the most important jobs in international finance, and is understood to have held preliminary discussions with figures in Washington late last year.

But sources in Brussels confirmed on Monday that EU finance ministers, who meet in Brussels on Tuesday, will confirm their support for a second term for Ms Georgieva. Mr Donohoe is currently in Brussels, where he is chairing a meeting of the Eurogroup finance ministers – from the countries which use the single currency – in his capacity as head of that group.

“It’s over. She will get it,” said one senior source.

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European countries normally nominate the head of the IMF so the renewed support for Ms Georgieva is expected to be decisive. It is understood that she secured pivotal French backing for a second term.

The news will come as a relief for the Government, which faced the prospects of losing one of its most important members before its last budget and the general election due afterwards in either late autumn or next spring.

Mr Donohoe, as well as being vastly experienced, forms an important cross party link with the Fianna Fáil Minister for Finance Michael McGrath.

Speaking in Brussels on Monday, Mr Donohoe said his focus was on his work as a member of the Dáil, and he did not believe there would be a potential vacancy in the role as head of the IMF. “Kristalina Georgieva has done an excellent job,” he said.

Pat Leahy

Pat Leahy

Pat Leahy is Political Editor of The Irish Times