as Minister for Finance is an important moment, as the Coalition enters the latter part of its time in office. McGrath’s relationship with public spending minister Paschal Donohoe – before and after they swapped jobs in late 2022 – has been a central feature of the Coalition, which has acted as a brake on budgetary extravagance. Now that one half of this partnership has moved on, the question is whether the way is clearer for a more nakedly political pre-election budget.
At home, the preparations for the budget are stepping up and the timing of McGrath’s departure is far from ideal. The Summer Economic Statement, which outlines the broad parameters of the budget package, is due to be published in early July. The new minister will have to read himself in quickly and faces a hectic period of negotiation in the run up to the package itself.
Their policy has faced criticism from the Irish Fiscal Advisory Council, the budget watchdog, for being too loose. However, the imminent general election is now another factor in the equation and senior ministers have already hinted at big plans for spending and tax changes.