Donohoe, 50, took the helm in 2020 at the informal body of finance ministers, whose chief carries weight in Brussels policy-making.

He was the only candidate after the Spanish and Lithuanian finance ministers withdrew shortly before the vote. 

Donohoe was "elected by consensus" for another two-and-a-half years, the Council of the European Union said in a statement.

The Eurogroup chair is tasked with ensuring EU states that use the single currency coordinate national financial policies -- a position whose importance was on full show during the 2008 global financial crisis.

There are currently 20 members of the single currency area but Bulgaria is expected to get the final green light on Tuesday to become the 21st, with membership due to start next year.

Spanish Economy Minister Carlos Cuerpo and Lithuania's Finance Minister Rimantas Sadzius withdrew from the race after it was clear neither man had enough support.

Donohoe said his task would be "to further strengthen our common currency area and facilitate tangible progress on our key work streams during this next mandate".

This included, he said, budgetary coordination, the digital euro and the Capital Markets Union, the EU's long-standing efforts to create a single capital market.

"A stronger and more competitive euro area will reinforce the international role of the euro, further enhance our resilience and prosperity to the benefit of our citizens," Donohoe said.