Spanish and Lithuanian finance ministers reportedly want to oust their Irish counterpart from securing a third term at the head of a powerful group of Eurozone countries. Five insiders have claimed Carlos Cuerpo and Rimantas Šadžius are sounding out support among peers before a secret ballot likely to happen in July, according to Politico.
Plotters repportedly want to end Irish Finance Minister Paschal Donohoe’s term at the helm of the Eurogroup club of 20 Eurozone ministers, who mastermind economic policy. As president, Mr Paschal holds considerable power, steering the group’s agenda. He has also been at the forefront of the Eurozone’s response to US President Donald Trump’s goods tariffs, which have upended global trade and international markets. According to Politico, Mr Paschal won’t be easy to oust as he has broad support among peers and has a reputation for being a “balanced power broker”.
A European Union diplomat told the same publication: “He is not loved by many, but no one hates him.”
The Eurogroup elects its president for a two-and-a-half year term. Candidates have to hold the position of finance minister in a Eurozone country.
A president is elected by simple majority in a secret ballot by fellow euro area finance ministers.
If no single person emerges as the victor in the first round of voting, a second round is held with the two candidates who gained the most votes in the initial round facing off in a decider held on the same day.
Mr Cuerpo and Mr Šadžius haven’t officially announced their bids for the top job, but are understood to be on a charm offensive to boost their prospects.
One thing which could work in Mr Donohoe’s favour is his affiliation with the centre-right European People’s Party, which holds power in a majority of EU member states.
This compares with Mr Cuerpo and Mr Šadžius, who align with the Party of European Socialists, which has lost much of its influence in Brussels.
One test of Mr Donohoe’s future success ahead of the vote may be how well he navigates the Eurogroup through the tariffs imposed on EU goods entering the United States.
He has said members of the Eurozone will use the 90-day pause on Mr Trump’s tariffs to engage in a “constructive way” with the US.
Mr Donohoe said the bloc welcomed the pause because it provided a window for opportunities. He added: “But what we will now do is use those 90 days to engage in a constructive way with the United States, to see if we can identify and negotiate an alternative to a path that will lead us all to a world of lower growth, of higher inflation, to many risks to the progress that we’ve made in recent years.
“In Europe we don’t want to see that happen, and we’ll be using the weeks that now await to, I hope, have structured engagement with the United States and find a better way of dealing with all the different issues that are at the heart of this trade.”
The European Union faces a 20% tariff under Mr Trump’s proposal, with all countries included in the tariffs regime subject to a minimum 10% levy.
Whoever occupies the Eurogroup presidency will also have to spearhead its efforts to tackle sluggish growth rates among member countries at a time of marked uncertainty with the 90 day pause leaving it unclear as to where the EU’s actual tariff rate will settle.
The economy in the 20 countries using the euro grew a modest 0.2% in the last three months of 2024.
