Ireland to nominate finance minister McGrath for EU Commission, source says

DUBLIN (Reuters) -The leaders of Ireland's three governing parties agreed on Monday to nominate Finance Minister Michael McGrath as the country's representative on the European Commission, a source familiar with the matter told Reuters.

McGrath, who served as public expenditure minister for two-and-a-half years before moving to the finance brief in December 2022, was responsible for setting up a new sovereign wealth fund last year to ease future healthcare, pension and climate costs.

A spokesperson for the government could not immediately be reached for comment. The commissioner nomination, which is set to be formally approved by cabinet on Tuesday, was first reported by the Irish Times and Irish Independent.

The move will require the government to name a new finance minister to put together its final budget before elections that are due within months. National broadcaster RTE reported that McGrath's replacement would be announced on Tuesday.

Under the coalition deal, the new minister will be chosen from the ranks of McGrath's Fianna Fail party with Housing Minister Darragh O'Brien and junior ministers Dara Calleary and Jack Chambers named by local media as potential successors.

(Reporting by Padraic HalpinEditing by Alistair Bell)