Paschal Donohoe refuses to rule himself out of top job at bailout fund



Finance Minister Paschal Donohoe refused to rule himself out of the running to take over as head of Europe’s bailout fund on the fringes of a meeting of European finance ministers in Luxembourg.

n response to a journalist’s question, Minister Donohoe, said he had “no comment” to make on whether he is a possible candidate to succeed Germany’s Klaus Regling as managing director of the European Stability Mechanism, the €500bn eurozone bailout fund that Ireland tapped in 2010.

It follows a tussle within the Coalition government here over whether Minister Donohoe can remain as head of the Eurogroup of finance ministers once cabinet here is reshuffled at the end of the year.

The post is traditionally handed only to sitting finance ministers. Under the coalition agreement, Mr Donohoe is due to relinquish that role in December to Fianna Fáil’s Michael McGrath.

Asked if would be a possible ESM replacement, Paschal Donohoe said:

“My only focus is on finding a replacement for Klaus and ensuring that we have a managing director in place that could continue with the functioning of a deeply important economic institution of the euro area,” Mr Donohoe told reporters in Luxembourg after chairing a Eurogroup meeting on Monday.

“Given that it’s my job to oversee this process and to try to deliver a compromise candidate – and somebody who can reach the required threshold of support within the euro area – I’m not going to comment on any other candidates, including myself, in relation to this.

“My job is as president of the Eurogroup. That is a mandate that continues all the way up until December.

“My only focus is on completing this term as president of the Eurogroup, continuing with my work as minister for finance for Ireland, and that’s where all my energy is and that’s where all my work is focused on.”

There have been no formal talks on Mr Donohoe taking over the role at the ESM, which finance ministers have been struggling to fill for months.

A replacement for Mr Regling – who has been at the ESM’s helm since its foundation – requires the approval of 80pc of eurozone finance ministers, who also act as its governing board.

Neither Luxembourg’s former finance minister Pierre Gramegna nor Portugal’s former finance minister João Leão were able to gather the required majority earlier this year.

According to a senior EU official, there are currently “zero candidates” for the job, which is based in Luxembourg.

Mr Regling said he was “confident” that someone would be found to succeed him. His term ends on Friday.



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