Harris to guide Irish economy amid Trump re-shoring threat
Ireland’s deputy prime minister, Simon Harris, is set to take over the finance ministry following the surprise resignation of Paschal Donohoe, who will join the World Bank.
The role gives Harris control of a relatively strong fiscal position, as Ireland is one of the few countries in the European Union running a budget surplus. But given those finances are built in part on tax revenue from US companies with operations in Ireland, the country is vulnerable to shifts in US trade and tax policy by Donald Trump, News.Az reports citing foreign media.
Harris was previously the country’s youngest ever prime minister and is currently foreign minister. He’ll now be tasked with implementing the budget for 2026, which Donohoe unveiled last month.
While policy continuity is likely, Ireland is losing a finance minister with years of experience built up steering the economy through crises like Covid, Brexit and, most recently, tariffs and trade uncertainty. Donohoe, who had rotated in and out of the finance ministerial role since 2017, has tried to prepare for risks by funneling profits into a rainy-day sovereign wealth fund.
Ireland has for years pulled in billions of euros in corporation tax receipts, mostly from a handful of US technology and pharmaceutical giants. Trump has vowed to change that, angling to re-shore profits and manufacturing jobs from American pharmaceutical giants based in Ireland.
Donohoe, dubbed “Prudent Paschal” locally for steering the economy with a steady hand, will take up the role of managing director and chief knowledge officer at the world bank later this month.
He held the role of Eurogroup President since mid-2020 and was a well-liked figurehead in Europe, seen as capable of making Ireland’s voice heard.
“The risk is that there is a significant adverse trade development with the US, in which case you would want someone with Donohoe’s CV and skill in place,” said Tom Pugh, chief economist at RSM UK and Ireland. “But that remains a risk for now rather than the base case.”
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