He says the prospect of a general election will depend on confidence and supply negotiations with Fianna Fáil
The Minister for Finance has the Government needs to know where it stands with Fianna Fáil on the confidence and supply agreement amid Brexit 'uncertainty'.
Both parties have agreed to talks in the coming weeks to discuss the prospect of an extension to the current deal, agreed back in 2016.
The existing arrangement was designed to cover three budgets - the last of which was unveiled on Tuesday.
Fianna Fáil leader Micheal Martin has indicated the talks may not begin until after the EU Brexit summit next week, while Leo Varadkar has said he'd like to see an agreement reached before Halloween.
Speaking on The Pat Kenny Show, Paschal Donohoe said it's important the political situation remains stable here against a backdrop of uncertainty over Brexit.
He explained: "What I believe is important is, given the speculation that has even intensified today; given the fluidity of British politics at the moment; and the impending importance of the European Council meeting next week and what will take place in November... we do need to know where we stand.
"We have to enter into that period of uncertainty with a stable environment here in Ireland."
He gave credit to Fianna Fáil and Micheál Martin for their part in living up to their commitments over the past three years.
On the prospect of a general election before Christmas, Minister Donohoe simply suggested: "It is really dependent on where we end up with the confidence and supply negotiations."
Declining to speculate on what a future Dáil might look like, he added: "As in life, there is no guarantee on anything in relation to politics... My job is making this Dáil and this Government work."