Paschal Donohoe renews as Eurogroup President after Carlos Cuerpo withdraws

Ane Barcos/Eduardo González Irish Finance Minister, Conservative Paschal Donohoe, was re-elected by consensus this Monday for a third two-and-a-half-year term as Eurogroup President after the Spanish Minister of Economy, Trade, and Enterprise, Carlos Cuerpo, withdrew his candidacy due to a lack of support. The Eurogroup, the forum of eurozone finance ministers, voted this Monday for the person who will preside over the body. The dispute was between Carlos Cuerpo, Paschal Donohoe (EPP), the current president and finance minister of Ireland; and Rimantas Šadžius, finance minister of Lithuania. However, Cuerpo withdrew his candidacy this Monday morning after realizing that he did not have the necessary support to achieve the simple majority required among the twenty ministers, in accordance with Protocol 14 of the Treaty on the Functioning of the European Union. To win the position, Carlos Cuerpo had to convince his counterparts from the 20 Eurogroup member states, nine of which belong to the European People's Party (EPP) and two others to far-right governments in Finland and Italy. Sources at the Ministry of Economy described Cuerpo's withdrawal as an "exercise of responsibility," a decision that came after two days of intense diplomatic negotiations. Cuerpo's withdrawal left Lithuanian Rimantas Šadžius as Donohoe's sole rival, who will begin his new term on July 13. After his re-election, Donohoe thanked his colleagues for the trust they had placed in him and renewed his commitment to the position. "It has been a great honor and privilege to serve as President of the Eurogroup since 2020. I am very grateful to my fellow ministers for the trust they have placed in me to continue leading our important work for a third term," he said. He also recalled that, “as I committed to the ministers in 2020, I have been and will continue to be a genuine and honest mediator in our negotiations, ensuring that all voices and positions are taken into account.” Donohoe also highlighted the strength of the European monetary bloc, noting that “in the face of significant geopolitical changes, the euro area has proven to be very resilient.” Regarding his priorities for this new phase, he emphasized that his main objective will be “to continue strengthening our common currency area and facilitate tangible progress in our key areas of work, from budgetary coordination to the Capital Markets Union, and from the digital euro to the Banking Union.” In this regard, he affirmed that “a stronger and more competitive euro area will reinforce the international role of the euro and increase our resilience and prosperity for the benefit of citizens.” The first President of the Eurogroup was Jean-Claude Juncker, followed by Jeroen Dijsselbloem, Mário Centeno, and, since 2020, Paschal Donohoe. Although the Eurogroup presidency does not grant executive power or a casting vote, it does allow for control of the agenda and influence in the debates and the search for consensus. Spain has already attempted to win the position twice. The two previous attempts were made by Luis de Guindos, former Minister of Economy under Mariano Rajoy, in 2015, and by Nadia Calviño, Pedro Sánchez's first female Minister of Economic Affairs, who also failed in 2020, precisely to Donohoe. In return, de Guindos is the current Vice-President of the European Central Bank (ECB), and Nadia Calviño is President of the European Investment Bank (EIB).

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