Incoming Minister for Finance Michael McGrath has criticised Leo Varadkar for publicly raising the issue of Paschal Donohoe retaining a plum EU post, saying it would not be credible.
n open row blew up between the main Government parties today, even though Tánaiste Leo Varadkar signalled he would not attempt to keep Mr Donohoe in the Department of Finance in the December reshuffle.
Yet Mr Varadkar left open the issue of Mr Donohoe thereafter holding on to his position as President of the Eurogroup (countries using the single currency), despite his not being Minister for Finance.
That led to immediate public criticism from Mr McGrath after both men were interviewed live on RTE Radio’s This Week programme today.
The Fianna Fáil man said it would be “tantamount to a division of the Department of Finance, which is not something that we would agree with.”
Mr McGrath added: “It is very much a matter for the party leaders. I would make the point that I think it should be discussed privately. It has been aired publicly now on a number of occasions, and it has yet to be raised with the Taoiseach.
“I think that is a far better way of dealing with what is a very important issue for our country.”
Asked if Mr Donohoe could remain on as President of the Eurogroup if Mr McGrath were in the senior ministry, the latter emphasised: “I think it is important to note that the Minister for Finance is the person who represents the country at the Eurogroup.
“Not to have that continue would represent a significant diminution in the role of the Minister for Finance. It would also raise a number of important questions — for example, who would represent Ireland at Ecofin (the European council of finance ministers)?
“And it would also raise questions about who answers in Dáil Eireann in respect of matters to do with European economic policy, capital markets, banking union and so on.”
He said of Mr Varadkar’s attitude: “It does sound like tantamount to a division of the Department of Finance, which is not something that we would agree with.
“But again, the Tánaiste should be discussing these issues directly with the Taoiseach. It isn’t about me personally. The Taoiseach was very clear during the week in relation to the agreement that was entered into, and the Tánaiste has acknowledged that that agreement will be honoured.
“But it is important that whoever holds the position of Minister for Finance represents the country in the Eurogroup and also Ecofin, and for all of the policy matters that are dealt with there — otherwise you’d have a significant part of the Department of Finance reporting to a minister who is not the Minister for Finance. And that’s not something that is credible.”
Mr Donohoe is due to shift to the Department of Public Expenditure and Reform (DPER), with the existing minister in that portfolio, Michael McGrath, taking up the senior job on Merrion Street.
Mr Varadkar made it clear on the same programme today that he would ultimately honour the agreement behind the formation of the Government in 2020 — meaning he will do what Fianna Fáil wants.
“We have an agreement as a Coalition,” Mr Varadkar said. “I’ve had the privilege to serve in three coalitions, and they’ve all lasted, because there’s been good faith, no surprises and people stick to their agreements.
“So we will stick to the agreements that we’ve made.”
But Mr Varadkar said it was “not the case that you have to be the Minister of Finance to be president of the Eurogroup.
“That’s not what’s in the (EU) treaties. And indeed, there’s the precedent of Jean-Claude Juncker, the obvious example of somebody who was not the finance minister.
“He was Prime Minister, Treasury minister, and he served as president of the Eurogroup. Why is it important? It’s not about titles and jobs. Because an Irish person was in the room when the global decision was made on how we reform corporate tax. And because of that, we were able to defend our interests and make sure that the global corporate tax deal didn’t cost us billions of euros.”
The Fine Gael leader added: “You can stay on as President of the Eurogroup without being the Irish Minister of Finance. It’s not as simple as that, of course, because it’s ultimately, a decision of the Eurozone finance ministers and not us.
“But we as a Government can hold that position for Ireland if we choose to — and he doesn’t have to be Irish finance minister.”
Mr Varadkar admitted he hadn’t discussed the issue with the Taoiseach saying he expected the reshuffle to be addressed in November, adding that outgoing Taoiseach Micheál Martin would be entitled to any portfolio he chose.
He has been widely linked to the job of Minister for Foreign Affairs, a role currently held by Simon Coveney.
