Eurogroup Chief Search Kicks Off With Donohoe in Prime Position

(Bloomberg) -- The Eurogroup is about to kick off its search for a new president, with Paschal Donohoe seen on track to win a third term, a feat that would make the Irishman the second-longest-serving chair of the euro zone's finance-chief meetings.
Ministers from the 20 countries are set to approve the plan to elect a new head when they meet in Luxembourg on Thursday. They have less than a month to decide, in time for the end of Donohoe's current 2 1/2 year term in mid-July.
Originally designed as an informal forum to exchange views, the Eurogroup morphed into one of the region's most closely watched decision-making bodies, notably so as the euro-area debt crisis reached its peak.
Finance ministers held many often acrimonious meetings, striking late-night deals on emergency bailouts for five countries, an overhaul of the EU's banking rules, and eleventh-hour loans to keep Greece from defaulting and crashing out of the euro.
The Eurogroup has only had four chiefs since the role became permanent two decades ago: Jean-Claude Juncker of Luxembourg from 2005 to 2013, followed by Jeroen Dijsselbloem of the Netherlands in the five years after that, and then Portugal's Mario Centeno until 2020.
That's when Donohoe — who is now 50 — first took on the role, beating candidates from Spain and Luxembourg to get the position during the pandemic. His bid for a second term went through unopposed, but this time there's speculation of potential challengers. Lithuania's Rimantas Sadzius has suggested he may throw his hat in the ring and media reports have also mentionede Carlos Cuerpo of Spain.
Whoever does win will take on a job facing heightened scrutiny, given a concerted push for reform by the region's top five economies — Germany, France, Italy, Spain and the Netherlands.
They argue that while the Eurogroup proved itself when crises hit, it has been a lot less decisive and nimble at other times.
One example they cite is the current struggle to achieve so-called capital markets union. That initiative has failed to take off so far, despite being a priority for the bloc that Donohoe has pushed for.
The five countries are also seeking more streamlined meetings, in a call for action on an area where Donohoe's input may be particularly pivotal.
'Save for financial turmoil times, the Eurogroup meetings would be more impactful if they were dedicated to a limited number of items, with strong political implications,' they wrote in a so-called non-paper seen by Bloomberg.
Another criticism is over potential overlap with matters handled by Ecofin, which is the broader meeting of European Union finance chiefs. The countries want discussions to hone in on issues related to the specific responsibilities shared by its members for the single currency.
Regarding topics to focus on, the five countries highlighted capital markets union, innovation, economic resilience and competitiveness.
--With assistance from Kamil Kowalcze, Michal Kubala, Alessandra Migliaccio, Milda Seputyte and William Horobin.
More stories like this are available on bloomberg.com

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

First Post

33 minutes ago

• First Post

Did US really name fighter jet F-47 after Trump?

In March this year, US President Donald Trump announced 'the world's first sixth-generation fighter jet, F-47. Many thought the number honoured Trump, but there is more to the story. read more On March 21, 2025, US President Donald Trump announced from the Oval Office that he had directed the American Air Force to move forward with the development of 'the world's first sixth-generation fighter jet .' He was flanked by US Secretary of Defence Pete Hegseth, who went on to boast about the fighter jet's 'speed, manoeuvrability and payload.' Hegseth said that the fighter jet promises to be something 'the likes of which nobody has seen before.' Trump went on to interject his defence secretary, pointing to the name 'F-47' for the fighter jet. 'Nothing in the world comes even close to it,' Trump said. 'It'll be known as the F-47. The generals picked the title. It's a beautiful number.' STORY CONTINUES BELOW THIS AD The announcement of the fighter jet's name came as a surprise since it was supposed to succeed the F-22 aircraft. Many soon started to wonder if the fighter jet was named F-47 to honour the 47th President of the United States, Donald J Trump. Well, the assessment might be partially true, but there is more to the story. To understand the reason why number 47 was chosen for the new line of fighter jets, let's first see how the United States names its weapon systems and aircraft. How do they get the names? It is pertinent to note that the US military has a longstanding naming protocol for its aircraft. The rules of the game are governed by something called the 'Mission Design Series', established by the Defence Department in the 1960s. 'This system uses letters and numbers to symbolise identifying characteristics of military aerospace vehicles of direct interest to the DoD,' an Air Force memo obtained by Bloomberg read. The first letter depicts the basic mission of the aircraft. For example, the letter 'B' denotes that it is a bomber and the letter 'P' denotes that it will be used for patrolling. Then there is a dash, which is followed by a number, called the 'design number'. According to an article by the US Naval Institute, this number conveys that the 'aircraft is a specific design of that particular type or basic mission.' The number tends to follow a sequential pattern. However, the article made it clear that 'there are many gaps and numerous exceptions to these sequences.' there are many gaps and numerous exceptions to these sequences.' Since the F-47 is succeeding the F-22, the fighter jet would fall in the exception category. Honouring history or Trump When a journalist from Bloomberg filed a Freedom of Information Act request with the US Air Force, he received the real reason behind the naming of the aircraft. The records from the Air Force showed that the name F-47 had its roots in an iconic World War II fighter plane, and the generals also found it an interesting way to honour the current US President. The records showed that General David Allvin, the Air Force's chief of staff, had an 'urgent' request for information about a World War 2 aircraft. A few hours later, Air Force researchers sent a two-page description of the P-47 aircraft, popularly known as 'Thunderbolt'. Airmen adopted their moniker for the P-47, calling it 'Juggernaut.' Over time, since the jet looked like a glass milk bottle, it was soon referred to as 'Jug'. In the memo obtained by Bloomberg, the US Air Force described the P-47 as 'probably the best ground-attack aircraft fielded by the United States. From D-Day, the invasion of Europe launched on June 8, 1944, until VE Day on May 7, 1945, pilots flying the Thunderbolt destroyed the following enemy equipment: 86,000 railway cars, 9,000 locomotives, 6,000 armoured fighting vehicles, 68,000 trucks.' STORY CONTINUES BELOW THIS AD How the Air Force was left by surprise by Trump's announcement When Trump announced the F-47 jet, neither he nor Hegseth mentioned the legacy of the P-47. Bloomberg's assessment showed that there is a possibility that the Air Force may have been caught off guard or were just unprepared when the president said the new fighter jet would be called F-47. It is pertinent to note that Trump's press conference took place at around 11:30 am (local time). The email obtained by the news outlet showed that they were sent soon after the presser. 'Sir, Request coordination with SECDEF office,' an Air Force public affairs official wrote in an email sent to Lieutenant General Dale White, the military deputy in the Air Force's Office of the Assistant Secretary for Acquisition, Technology, and Logistics. However, General Allvin's team dismissed the claim that the decision to honour P-47 was taken after Trump's announcement. At least one reporter pressed an Air Force spokesperson for more details about the 'designation for the F-47.' 'The nomenclature system exists to maintain an orderly, non-chaotic process of naming systems,' the reporter asked. 'Why was it abandoned in this case? And who decided to do that?' the reporter asked. Ann Stefanek, the Air Force spokesperson, did not share additional details on the matter and just remarked: 'General Allvin made the decision.' It will now remain unclear exactly when the decision to honour the aircraft was taken. STORY CONTINUES BELOW THIS AD With inputs from agencies.

NDTV

2 hours ago

• NDTV

Tesla's First India Showroom To Open In Mumbai This July: Report

Tesla, the US-based electric vehicle manufacturer, is set to open its first showroom in India in July. This marks an important step for the company as it begins its formal operations in the Indian market, bringing us closer to seeing their cars on the roads. This move is crucial for Tesla, as India is the world's third-largest car market. The brand's presence in India could significantly boost its sales, especially considering the declining sales in Europe and China. As per Bloomberg's report, Tesla will launch the Model Y with a rear-wheel drive configuration in the Indian market. Supporting the claim is the fact that this model has been spied testing in the country on different occasions. The report suggests that this EV will be imported from Tesla's China factory. Bloomberg News claims that the information came from people closely associated with the matter and asked not to be identified. Also Read: Mahindra Scorpio N Likely To Get ADAS, Panoramic Sunroof Soon The first showroom to be opened in Mumbai in July will be followed by the expansion of operations with a new showroom in New Delhi, the report claims. The dealerships have also imported supercharger components, car accessories, spares, and merchandise from China, the US, and the Netherlands. Tesla's entry into India follows several years of delays caused by disputes over import taxes and requirements for local production. The breakthrough occurred after a meeting between Elon Musk and Prime Minister Narendra Modi in the United States in February of this year. The Tesla Model Y will reportedly go on sale for over $56,000 (around Rs 48.48 lakh) without taxes. However, the final prices might vary, considering the brand's position in the market and its margins. If the car enters the market with a high price tag, it might have an effect on the sales of the automaker.

Mint

2 hours ago

• Mint

Continental's Split Shows How Germany's Business Model Is Shifting

(Bloomberg) -- Continental AG intends to become the latest German manufacturing stalwart to dismantle itself, highlighting the pressure to become more agile to weather structural issues at home and respond to mounting competition abroad. Tracing its roots to producing rubber hoof buffers for horses in the late 19th century, the Hanover-based company plans to split into three: the core tire business, rubber components and auto parts. The moves, which Continental will pitch to investors on Tuesday, would unwind decades of diversification and reflect Germany's shifting business model. 'Continental is a very good example of how German companies are finding it difficult to navigate the transformation,' said Stefan Bratzel, head of the Center of Automotive Management in Bergisch Gladbach, Germany. 'This breakup shows one way that the model of a big, one-stop shop doesn't work anymore.' Once favoring sprawling structures, German businesses are getting smaller and more nimble in response to rapidly changing technology and geopolitical volatility. Industrial giant Siemens AG and steelmaker Thyssenkrupp AG already moved to split up years ago. Automakers have shifted as well as the industry reacts to Chinese rivals and the transition to electric vehicles. After Daimler split its cars and truck businesses and Volkswagen AG partially spun off the Porsche sports-car brand as well as its commercial vehicle unit, Continental's strategic shift shows how the supply chain is now starting to adapt. Chief Executive Officer Nikolai Setzer wasn't always so enthusiastic about a breakup. Two years ago, he told investors that the global automotive and industrial group would stick to its three-pillar structure, because it provided better insulation from unforeseen downturns. That changed last August, when Continental announced plans to spin off its auto-parts unit and lowered earnings forecasts due to weak car demand in Europe. At that point, its non-tire rubber unit ContiTech was becoming more of an industrial player and drifting away from the automotive business, according to the 54-year-old executive. A second carveout would leave Continental with a tires-only portfolio, which nets the biggest profits. 'The common markets of our three sectors were reducing or diminishing over time — the sectors had different purposes, customers and products, so synergies were limited,' Setzer said in an interview. 'As soon as you have different entities within a company, you have to see whether the synergies outweigh the challenges of holding them together.' Headwinds have increased in Germany after two years of contraction and minimal growth projected this year. For Europe's largest economy, the changed corporate strategy is not without risk. Smaller companies could be more easily swallowed by rivals or relocate to escape smothering bureaucracy and high labor costs. That puts pressure on Chancellor Friedrich Merz's administration to move fast on reforms that can revive prospects for domestic companies, even though hundreds of billions of euros in planned debt-financed government spending has brightened the mood. While the carveout of parts business Aumovio is a done deal, union leaders are concerned that separating rubber unit ContiTech from the tire business would add costs and put jobs at risk. They're threatening to use their control of half the seats on the supervisory board to try to block the move. What Bloomberg Intelligence Says: The restructuring will make Continental a pure-play tire business, which could position it for a rerating. — Gillian Davis, industry analyst (Click here for the full report) 'There are considerable synergies between tires and ContiTech,' Matthias Tote, the unit's works council chief and a supervisory board member, said in an internal memo sent to workers on Monday. Jörg Schönfelder, another employee representative on the board, said executives are moving ahead 'without adequately assessing the potential risks.' The company has already announced plans to close five ContiTech sites completely and two partially, which will cut hundreds of jobs. Despite the resistance, Chairman Wolfgang Reitzle can break the deadlock, though the tensions could spark legal challenges and delay the process. The motivation for management is clear. With the stock effectively flat-lining over the past five years, Continental is worth about a third less than rival Michelin, which has recently moved in the opposite direction and expanded its non-tire business. Continental's breakup will happen in two stages with the listing of Aumovio planned for September. The sale of ContiTech — which employs almost 40,000 people globally and makes an array of rubber and plastics products — is targeted for next year. 'The auto spinoff is the right thing to do, just probably five years too late,' said Harry Martin, an analyst at Bernstein. 'It's not unleashing a lot of growth potential.' To be sure, some German conglomerates remain intact. Robert Bosch GmbH, a major automotive supplier and industrial tech firm, is shielded from breakup pressure by its foundation ownership. Merck KGaA, which is active in pharmaceuticals and specialty chemicals, and consumer goods maker Henkel remain largely untouched. Conglomerates once promised stability and efficient capital allocation across sectors, but sprawling portfolios have fallen out of favor as investors push for focus and higher returns. Continental's breakup reflects a broader retreat from the model, as complexity and weak synergies increasingly outweigh the benefits of diversification. For Setzer, Germany's economic woes are only part of the driving force to split up. The company has seen 'tempered growth' in its global markets, specifically in Europe and North America, he said. In China, the automotive unit's sales have been falling short of the market and that's likely to continue, according to Aumovio's top executive. 'In such an environment where you need to adapt fast because visibility is so low, where customers can't always give you reliable forecasts, that's where you need small, agile teams,' Setzer said. 'The better you can adapt now, the better you will profit in the future.' --With assistance from William Wilkes and Isolde MacDonogh. More stories like this are available on