“The European Stability Mechanism (ESM) acknowledges that Paschal Donohoe has announced his resignation as president of the Eurogroup. He will also step down from his role as chairman of the Board of Governors of the mechanism, a position he has held since July 2020,” the organization stated in a release.
In the press note, a day following Donohoe’s resignation and days before he assumes a new position, ESM Managing Director Pierre Gramegna expressed his sincere gratitude to Paschal, as chairman of the Board of Governors, for his dedication to supporting the institution’s initiatives and activities.
Highlighting Donohoe’s exceptional leadership and guidance in promoting reforms, Pierre Gramegna noted that the role of the outgoing Eurogroup president was crucial in addressing unprecedented challenges, including the consequences of the COVID-19 pandemic and geopolitical upheavals, which placed significant strain on public finances.
The Board of Governors will continue its work under the established governance framework and prepare for the appointment of a new chairman.
Eurogroup President Paschal Donohoe will leave his position, which he has held since 2020 and to which he was recently reelected, to become the new executive director of the World Bank from next Monday, the global financial institution announced, highlighting his extensive experience spanning both public and private sectors.
Paschal Donohoe, who was first elected president of the Eurogroup in July 2020, then reelected in December 2022, and in July 2025, will be succeeded in a candidacy and selection process that will take place after his departure next Monday, though no specific timeline has been set, as indicated by an official source from the forum that gathers euro area ministers.
In a statement released in Brussels, Paschal Donohoe described the opportunity to serve as president of the Eurogroup as one of the greatest honors of his professional life, recalling challenges such as the COVID-19 pandemic, record inflation due to the Ukraine war, and new EU priorities.
According to the Eurogroup’s working methods, the informal single currency forum will now select a new president as soon as possible.
In the interim, Cyprus Finance Minister Makis Keravnos will assume the role of interim Eurogroup president, given Cyprus’s presidency of the EU Council in the first half of 2026.
The Eurogroup president chairs meetings, sets agendas, develops long-term work programs, and represents the Eurogroup in international forums.
Members of this body elect their president for a two-and-a-half-year term by a simple majority vote.
