Ireland's Prime Minister Leo Varadkar unexpectedly resigns

Irish Prime Minister Leo Varadkar on Wednesday announced he will step down as soon as his Fine Gael party names a new leader.

"When I became party leader and taoiseach [prime minister] back in June 2017, I knew that one part of leadership is knowing that the time has come to pass on the baton to somebody else, and then have the courage to do it. That time is now," Varadkar told reporters outside government offices in Dublin.

"So I am resigning as president and leader of Fine Gael effective today and will resign as the taoiseach as soon as my successor is able to take up that office."

Varadkar said his reasons for stepping down were "both personal and political," suggesting that a new leader would be better placed to lead his party and the current centrist governing coalition — which also includes Fianna Fáil and the Green Party — into the upcoming local and European elections of June. The next national election must be called by early 2025.

He has asked for a new leader to be chosen on April 6, allowing for the election of a new prime minister after parliament's Easter break.

Fine Gael has suffered a series of resounding electoral defeats of late, while 11 of the party's members of parliament — known as Teachta Dála (TD) — have announced they will not run again in the next election. Varadkar said he no longer felt he was the best person to lead the party.

"There are loyal colleagues and good friends contesting the local and European elections, and I want to give them the best chance possible, and I think they have a better chance under a new leader," he said.

Varadkar will remain as a constituency TD for Dublin West and said he has "nothing else lined up" and "no definite personal or political plans."

In 2017, Varadkar became the first gay and biracial prime minister in Irish history and the youngest person to hold the office, serving until 2020. In 2022, he returned to the role as part of a rotation agreement between Fine Gael and Fianna Fáil, the two largest parties in the three-party governing coalition.

The Dublin Chamber of Commerce on Wednesday applauded Varadkar's role in leading Ireland's post-Covid recovery.

"We've been fortunate to engage with him in each of his roles as a Minster and as Taoiseach. Investment, employment and living standards are now at the highest levels in the history of the state," Dublin Chamber CEO Mary Rose Burke said in a statement.

"We want to thank him for his long-standing support for and engagement with Dublin Chamber in our work in advocating for businesses in the region and we wish him well for the future."