What will Paschal Donohoe stepping down mean for the Government?

James Cox

Minister for Finance Paschal Donohoe is to step down to take up a position at the World Bank.

It is understood Mr Donohoe will take up the role of managing director and chief knowledge officer. This is essentially the number two position at the World Bank, and he has informed Taoiseach Micheál Martin and Tánaiste Simon Harris of his decision. 

So what will Mr Donohoe's departure mean for the Government?

Mr Donohoe was head of Eurogroup of European finance ministers, so this prestigious role will also be one he stands down from.

It is undoubtedly a blow to the Government and Fine Gael in particular. Mr Donohoe is seen as one of the most capable ministers in the Coalition, and had been linked to the party leadership when Leo Varadkar stepped down before ruling himself out.

Mr Donohoe was seen as a measured finance minister and his insistence on funds going to the 'rainy day fund' helped keep the economy stable in recent times of global instability.

Cabinet reshuffle

It is understood the Taoiseach and Tánaiste will confirm a Cabinet reshuffle on Tuesday in the wake of Mr Donohoe's departure.

Sources have indicated Mr Harris will take over the finance position.

This would mean a vacancy in foreign affairs, likely to be filled by a Fine Gael politician.

Minister for Enterprise, Tourism and Employment Peter Burke is believed to be a heavy favourite for the role. This would likely mean a junior minister is promoted to take up the enterprise portfolio.

Byelection

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

It will mean a byelection will take place in the constituency.

This will be another unwanted scenario for the Coalition as polls have not been favourable for government parties lately with surges in support for Sinn Féin.