Mr Donohoe Goes To Washington

After 14 years in Leinster House, Paschal Donohoe is swapping Dublin for Washington DC.

The Dublin Central TD – and Minister – announced his resignation to Cabinet on Tuesday, November 14, bringing an end to over 20 years of political service as he begins a new position with the World Bank.

Donohoe’s new job title is the catchy “Managing Director and Chief Knowledge Officer” at the World Bank.

First elected to Dublin City Council in 2004 in the Cabra-Glasnevin constituency, Donohoe was elected to the Seanad in 2007, before being elected to the Dáil in 2011.

His time in the Dáil was marked by his role as Minister for Finance at the height of Brexit negotiations, the depths of the Covid-19 pandemic, and, in more recent times, overseeing Ireland’s response to Donald Trump’s trade war with Europe.

From 2017 to 2020, Donohoe pulled double duty as both Minister for Finance and Minister for Public Expenditure and Reform.

After the 2020 general election, Donohoe solely focused on the Minister for Finance brief 

It was Donohoe’s position as the head of the Eurogroup that appears to have caught the World Bank’s attention, however.

In 2020, in addition to his role as Minister for Finance, Donohoe was named as President of the Eurogroup, a group of all of the Eurozone’s finance ministers.

Despite working with other finance ministers who stood in contrast to his own personal beliefs of financial prudence, Donohoe played a large part in shaping Europe’s response to the Covid-19 pandemic, along with influencing how the Eurozone responded to the second Trump term.

Reflecting on his time in the Eurogroup, Donohoe said, “this work has allowed me to see, first-hand, the immense value and benefit of our membership of the European Union.”

He said, “the importance and benefit of this international cooperation has been a key theme of my public life,” and has embraced the chance to work at the World Bank.

Donohoe’s decision to resign as both a TD and Minister was announced prior to a Cabinet meeting on November 14, but analysts note that Donohoe not putting his name forward as a candidate to succeed Leo Varadkar as Fine Gael leader and Taoiseach was a hint about his future aspirations.

In an interview with RTÉ, Donohoe admitted that he had some reservations about standing in the 2024 general election in Dublin Central, an election where he ended up receiving more votes than any other candidate.

In addition, Donohoe said he never harboured any ambitions to become Taoiseach.

Talk has turned to the by-election in Dublin Central, with all signs pointing to incumbent Lord Mayor of Dublin, Ray McAdam, being Fine Gael’s candidate on the ballot.

Reflecting on his own career, Donohoe noted that upon becoming a member of Cabinet in 2014, Ireland was running at a budget deficit of €2.1 billion; Ireland now boasts a budget surplus of €8.4 billion, with €24 billion put aside in national wealth funds.

Donohoe noted that Ireland’s debt as a share of our national income was at 116% in 2014, and now stands at 67%.

Donohoe’s election in the 2011 general election marked a new generation of Fine Gael TDs; socially liberal, but with a penchant for financial prudence.

On the social side, Donohoe wrote an op-ed for the Irish Independent in 2015 in advance of the same-sex marriage referendum, stating “there is nothing to fear from allowing people to marry those who they love. There is nothing to fear from treating every committed, long-term relationship equally.”

In 2017, prior to the referendum on abortion, Donohoe was among the first of the Fine Gael TDs to back the practice being made more readily available, notably sparring with party colleague Patrick O’Donovan on the issue.

Outside of politics, Donohoe is well-known for his support of Bohemians FC, being a consistent advocate for the redevelopment of Dalymount Park, as well as his penchant for fiction and non-fiction books making him a regular on the airwaves and broadsheet pages.

It is, however, his hand in delivering 10 Budgets that will define Donohoe’s political legacy.

The Irish economy of November 2025 is in a very different position from the one Donohoe had a hand in crafting in October 2014.

In October 2014, austerity was seen as a necessary evil by the Fine Gael-Labour government of the day, and while the Troika left Ireland in 2015, the mindset has remained relatively intact. 

Despite spending on the likes of healthcare, housing and education going up in real terms compared to 2014, a sense of malaise has settled on the various systems like mildew.

In his statement, Donohoe noted that “I know there is still much progress we have to make in our great country, especially with regard to building more homes, tackling climate change and supporting those with disabilities; I know that there are still so many needs we must better meet.”

In other words, GDP has increased in the time Donohoe has been in Cabinet, but a cost-of-living crisis and a sense of stagnation in healthcare, disability services and education still persist.

Under Donohoe’s stints as Minister for Finance (serving from June 2017 to December 2022 and from January 2025 until November 2025), the days of giveaway budgets were a strict red line for Donohoe, something that characterised Fianna Fáil budgets of the past.

Indeed, when Fianna Fáil delivered the 2023 and 2024 Budgets, they were characterised as “giveaway” budgets, a break from the “rainy day fund” ethos that was championed by Donohoe.

Fine Gael’s two councillors in Cabra-Glasnevin, where Donohoe saw his first taste of electoral success in 2004, paid tribute to Donohoe.

Councillor Colm O’Rourke said, “Paschal has been more than a colleague, he has been a mentor and a friend. He has always been generous with his time, advice, and encouragement. In many ways, he was the reason I first got involved in politics, and I will always be grateful for his guidance over the years.”

“His career has been defined by dedication, professionalism, and a genuine commitment to the people he represents. Having started out as a councillor for the Cabra-Glasnevin Ward himself, he has always understood the importance of staying close to the community.”

O’Rourke said, “his contributions locally, nationally, and internationally have been remarkable, and his presence will be deeply missed by colleagues and residents alike.”

Councillor Gayle Ralph said that Donohoe’s departure marks the “end of an era” for Fine Gael at a local level.

“While his departure marks the end of an era locally, his new position is an important recognition of Irish expertise and public service at an international level. I wish him and his family every happiness and success in this next chapter,” she said.

“I also want to wish him every success in his new role. His appointment is also a significant moment for Ireland, with an Irish representative taking on such a senior and influential role on the global stage.”

“The organisation will no doubt benefit greatly from his extensive experience, professionalism and deep understanding of economic policy and governance.”

Fellow Northsider – and Ministerial colleague – Jack Chambers said, ”it has been an honour and a privilege to work alongside Minister Paschal Donohoe over the past 18 months as we worked to protect and grow our economy while navigating global economic uncertainty.”

The Fianna Fáil TD said, “I wish Paschal and his family every success as he takes on an exciting new role at the World Bank.”

The Dublin West TD said, “I have greatly valued the opportunity to work closely with him in our respective roles as Minister for Finance and Minister for Public Expenditure.”

“Throughout his many years of distinguished service, Paschal has guided the country through difficult and uncertain times with confidence, resilience, and strategic direction. His non-partisan approach fostered trust, unity of purpose and built genuine partnership within government.”

Donohoe’s Dublin Central contemporary, Sinn Féin leader Mary Lou McDonald, praised Donohoe on a personal level, telling the Dáil, “Paschal and I have been constituency colleagues in Dublin Central for many, many years. I wish him, his wife and his family well, and I genuinely hope the next chapter in their lives brings them good health and happiness.”

However, McDonald said that Donohoe was leaving behind a government that is “not defined by service, not defined by ambition, but by a relentless commitment to clinging to power at all costs.”

“Your out-of-touch, out-of-ideas, out-of-time government is on its way out. Today, the Finance Minister is taking his leave. Oh, that the rest of ye would follow,” she remarked.

Solidarity TD Ruth Coppinger was more critical of Donohoe and his new position.

“We can’t pretend that the policies of austerity he helped enact that produced massive suffering for working-class people are part of the reason he got this job,” she remarked.

The Dublin West TD said, “the World Bank and its sister organisation, the IMF are capitalist institutions whose policies and loans have directly led to greater inequality in the Global South and led to the situation now where 1% of the world owns 95% of the wealth”

“Donohoe’s last budget, in particular, made life worse for people with disabilities and will lead to more people moving into poverty, so he should fit right in.”