Minister for Public Expenditure Paschal Donohoe is said to be considering a bid to lead the International Monetary Fund (IMF).
According to Bloomberg, Donohoe hasn’t officially declared his candidacy for the role, but has been having initial discussions about it. He is seen as a strong contender due to his reputation in Europe and his close relationship with US Treasury Secretary Janet Yellen.
Donohoe, 49, who served as Minister for Finance from 2017 to 2022, led the Eurogroup during a crucial period and was re-elected late last year for a second term. The current term of IMF Managing Director Kristalina Georgieva ends in September 2024, and Donohoe has not publicly stated his intentions yet.
A spokesperson for Donohoe stated that he is fully committed to his current role in Ireland and in the Eurogroup and will be a candidate in the next election in Ireland.
As the representative of the euro-zone economy, Donohoe has regularly attended the Group of Seven meetings and has built a strong rapport with several European finance ministers.
The role of IMF Managing Director will be challenging, particularly with several low-income nations facing economic distress. It is also unclear how other IMF members, especially those from emerging market economies, would react to another European candidate.
The IMF has always been led by a European national, and the support of Europe and the US would make it difficult for other candidates to succeed. Donohoe has a close relationship with Treasury Secretary Janet Yellen, which could potentially give him a plausible path to US support.
Bloomberg
