The re-election of Minister for Finance Paschal Donohoe as President of the Eurogroup - the informal gathering of eurozone finance ministers - is a testament to his hard work and diplomatic skills over the past two and a half years.

It's notable that he was unopposed, underlining that he was considered to have done a good job during his first term.

All eyes had been on the Spanish Finance Minister Nadia Calvino, as she been narrowly defeated for the position by Mr Donohoe back in 2020.

In the event, Ms Calvino opted against throwing her hat in the ring.

Now that the matter has been clarified, it begs the question: what benefit does Ireland accrue from having its Minister in such a post, particularly when Mr Donohoe will have to act as an independent interlocutor?

Supporters of the proposition will point to the fact that the Eurogroup is a highly influential entity when it comes to the development of EU fiscal policy.

As President, Mr Donohoe arranges both the agenda of meetings and the long-term work-stream. This means he's able to prioritise certain matters over others and help determine outcomes.

If you believe in multilateralism - the concept of states working together in a common goal - it's a no-brainer: influence is a coveted commodity and a Eurogroup President can be very influential.

He is mixing with the President of the European Commission, the President of the European Central Bank, and leading financial figures around the world like the US Treasury Secretary or chair of the US Federal Reserve.

It means that Mr Donohoe is able to bring that insight into Cabinet back home and improve decision-making - even if he's precluded from repeating any of the private conversations he's having.

Detractors may argue that Minister Donohoe's time would be better spent trying to resolve the many pressing matters at home - such as the crises in housing and health.

Why not focus all of his energy there, rather than chairing an entity which does not even have law-making powers?

The counter-argument is that the Dublin Central deputy will have a deeper understanding of the direction of the EU's economy, due to his Eurogroup position, and therefore will be better able to guide decision-making at home.

Just because it went well in the first term, however, does not mean it's going to be a guaranteed success this time.

For a start, Mr Donohoe will have to reassure other members of the Eurogroup that he can continue to work effectively even though he's no longer a finance minister.

On 17 December, he is switching roles with Michael McGrath and will become Minister for Public Expenditure.

This means that we will be in a relatively unique position at Eurogroup: Michael McGrath will represent Ireland, with Paschal Donohoe acting as the independent chair.

There is a precedent for this - established by the former Luxembourg leader Jean-Claude Juncker.

That said, it is still unusual and other Eurogroup members will no doubt be watching closely for any sign of Ireland attaining unfair influence by having two ministers at the table.

A quick search on social media, and jobs like this are usually branded by the numerous cynics as part of the 'political gravy train'.

However, the President of Eurogroup is an unpaid position. So, for as long as this Government remains in office, Mr Donohoe will be in the eurozone hot seat.

If there's a General Election, Mr Donohoe could only stay on as President of the Eurogroup if Fine Gael was back in Government and he was back in Cabinet.

His first challenge next month will be helping Croatia - the Balkan country formally joins the Eurogroup in 2023 - because its currency, the Kuna, is being replaced by the Euro.