By Elizabeth Hearst
If you had told someone in the wake of the 2008 economic crisis that in 2020 Ireland would effectively be handed the keys to the European vault and assigned the job of guarding it, you’d probably have been laughed at.
However, this is the new reality. Paschal Donohoe is now President of the Eurogroup, John Berrigan heads up the European DG on FISMA and Mairead McGuinness was appointed European Commissioner for Financial services Tuesday. Ireland has one of the best credit ratings on the globe, attracted hundreds of millions in foreign direct investment and is seen as the poster child for economic recovery in Europe. This tiny country on the continent’s Western fringe has recorded economic growth year on year since 2014, even with the shadow of Brexit imposing on the flourishing nation.
The Irish economy and political landscape has remained relatively stable amidst a tumultuous show on either side of its shores. So far its political leaders have navigated the choppy waters of Brexit and Trump’s America, with Michel Barnier, the EU’s chief Brexit negotiator crediting the Irish delegation for their role in reaching the Brexit agreement. He said: “It certainly wouldn’t have been possible to reach this [withdrawal] agreement without the hard work, passions and unity of everybody here in Ireland.”
Well-respected amongst his European counterparts, Paschal Donohue was elected as the President of the Eurogroup – the collective body of 19 European Finance Ministers who use the Euro, in a secret ballot in July. He beat stiff competition from Spain’s Minister for the Economy, Nadia Calvino who received public backing from Germany, Italy, France and Spain.
Known for his financial discipline, he centred his campaign around “building a bridge” between traditionally conservative Northern European countries and their Southern European counterparts. Gernot Bluemel, the Austrian finance minister said: “We need an understanding for the positions of small and medium-sized economies… Ireland has pursued a disciplined reform agenda in recent years and knows the challenges and requirements of the European aid mechanisms”.
Just as Ireland began to enjoy its repaired reputation, as winners of the prestigious UN Security Council seat in June, Donohoe’s promotion in July and the realisation that an Irish representative – Phil Hogan, held one of the most influential positions in the world as EU Commissioner for Trade, the walls began to tumble down.
Phil Hogan attended a society golf dinner on the 19th August in breach of Coronavirus regulations. Following intense public scrutiny and much baying for his removal from office, he tendered his resignation to Commission President Ursula von der Leyen on August 26, leaving the Commission without a Trade representative and the Irish delegation red faced.
They say that a week is a long time in politics, and it’s given the Irish public a time to reflect. Did we shoot ourselves in the foot? Did we anger our European counterparts at a crucial time? Would we face retribution?
Yet the storm clouds cleared somewhat on Tuesday 8th September, when it was announced that Mairead McGuinness was selected by von der Leyen as the Irish representative, and would be responsible for financial services, financial stability and the capital markets union. This portfolio packs a punch – especially for those in the AML and financial crime sector.
McGuinness will head up the new Anti-Money Laundering Body and will be crucial in determining whether the body will be under the direction of the European Banking Authority or whether it will be independent. McGuinness brings a wealth of experience as an MEP for over fifteen years, and is described as an “excellent candidate” by von der Leyen. Although Valdis Dombrovskis, former Commissioner for Economy and now Trade will retain responsibility for relations with Eurogroup finance ministers.
The Troika of Irish influence over European financial affairs also includes John Berrigan, who is the Director General of Financial Stability, Financial Services and Capital Markets Union (FISMA). A graduate of Economics from UCD, Berrigan has worked for the European Union for over thirty years.
Berrigan started out as an administrative assistant in the DG AGRI department, and gained experience in a variety of European sectors including Economic and Finance (ECFIN), and the IMF. He worked as the Head of Unit for Financial Markets and Financial Intermediaries in DG ECFIN for ten years before he was promoted to Director for Financial Stability and Monetary Affairs in DG ECFIN.
In 2014, Berrigan joined DG FISMA as Director for Financial System Surveillance and Crisis Management before being appointed as Deputy Director-General in charge of four subsections of DG FISMA, where he worked for five years. In March 2020, Berrigan was appointed as the Director-General of FISMA and is seen as holding an incredibly influential role.
Berrigan and McGuinness will work closely together in the coming months, as the European Union aims to tackle financial crime and to drive investment in green channels, as well as tightening Europe’s taxonomy regime.
After the fall-out of the Golfgate controversy, it’s clear that the Irish delegation are keen to shake off any reputational damage. This trifecta will be critical in determining how Ireland’s European counterparts perceive Irish influence over European affairs. Their work in strengthening Europe’s financial security and ensuring that Europe is closed to “dirty money” will be tantamount to the legacy they leave behind.
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