A new Brexit flare-up and potential trade war are forcing the government to rethink its move to Pascal Donohoe’s restructuring.
Ianna Fáil will take up the post of Minister of Finance in the December rotation of top government posts. That means Mr. Donohoe will relinquish one of Europe’s most powerful roles.
Minister Fein Gale chairs the Group of Finance Ministers in countries using the euro, but will then lose this highly influential post.
Conservative leader Liz Truss, the likely next UK prime minister, has stepped up the threat over the Northern Ireland Protocol. Violation of the Brexit deal has put Ireland at risk of a trade war with the EU, with Ireland caught in the middle.
Fine Gael has argued within the coalition that Donohoe should remain as Finance Minister and not swap roles with Fianna Foyle Public Expenditure Minister Michael McGrath.
“No one knows what the next problem will be: corporate taxes, the European recession, Brexit. What about Ireland in the heart of Europe?” a government source said. Irish
The Golfgate controversy’s forced resignation of European Commissioner Phil Hogan means the government has already abandoned its major role in Europe.
“Europe realizes that we have stepped away from the big job with Phil Hogan. dear,” said a government source.
Fianna Fáil claims the exchange of roles in finance and public spending was agreed with Fine Gael as part of a rotating taoiseach deal.
Thanaiste Leo Varadkar is expected to swap jobs with Taoisette Michelle Martin in mid-December in a Cabinet reshuffle. It’s a schedule.
Public spending minister Michael McGrath is expected to be Fianna Foyle’s choice as finance minister. However, it will not go to him, as the presidency of the Eurogroup rests with the individual.
“Michael and Pascal will continue to work very closely together and get along well. That’s good for inter-party government stability,” another government source said.
McGrath will be Fianna Foyle’s first finance secretary since the late Brian Lenihan.
Donohoe’s supporters allege that his influence played a role in the Irish corporate tax rate deal of 12.5% last year. The government signed the world’s lowest 15% rate, but with certain concessions.
Donohoe defeated representatives of Spain and Luxembourg in the Eurogroup presidential elections in mid-2020, and his term will run until January 2023, a month after the reorganization.
Membership in the Eurogroup is defined in the EU Treaty as the “minister responsible for finances” of the member states of the Eurozone.
“Ministers must have proper attribution and recognition by governments to be able to represent their countries in the Eurogroup,” the Eurogroup said.
If Donohoe is Ireland’s finance minister, Europe sees him almost guaranteed a second term as Eurogroup president.
Lobbying for the position began months ago, so there is already interest in European capitals over Donohoe’s vacancy.
“The process and date for the next election have not yet been set. It will be announced by the Eurogroup President well before the end of his term, with the consent of the Eurogroup,” the Eurogroup said. .
Ireland’s influence in Europe was undermined by the uproar surrounding Mr Hogan’s resignation.
In his second term, Mr. Hogan was the Commissioner for Trade at the European Commission, a very powerful figure with direct ties to Brexit.
His replacement, Mairead McGuinness, was given a financial services brief, but is considered a minor role in Brussels.
In her most notable act, she has caused surprise by labeling her gas and nuclear investments as environmentally friendly, sparking a backlash from Green MEPs and Fianna Foyle.