Makhlouf outlines priorities for Ireland and Europe amid accelerating global changes
Gabriel Makhlouf, Governor of the Central Bank of Ireland, outlined key priorities for Ireland and Europe to build resilience and adapt to accelerating global changes. Speaking to EU Heads of Missions, he highlighted geopolitical shifts, climate change, and rapid innovation as critical drivers.
Ireland's five pillars of resilience
Makhlouf described the current decade as defining, marked by global pandemics, war in Europe, rapid AI advancement, and a changing international order.
He noted that geoeconomic risks and climate change are accelerating, requiring adaptation.
For Ireland, despite recent resilience, vulnerabilities like a concentrated tax base and infrastructure deficit necessitate building economic strength.
He outlined five domestic policy priorities: growing supply-side capacity, strengthening indigenous businesses, building fiscal buffers, supporting household resilience through financial market participation, and developing new multilateral trade rules.
Macroeconomic stability, underpinned by appropriate monetary, fiscal, and regulatory policy, remains crucial for success.
Monetary policy will continue to focus on price stability for the euro area, adapting to inflation outlook changes.
Unlocking Europe's potential
Makhlouf urged Europe to adapt while preserving its core principles of openness, a robust single market, shared values, and shared sovereignty.
He argued that Europe must leverage its strengths to navigate structural shifts.
He proposed three key policy areas for maximizing dividends: first, enhancing internal and external trade by completing the single market; second, deepening the Savings and Investment Union through expanding safe assets, mobilising retail capital, and increasing market attractiveness; and third, boosting productivity via technology adoption and accelerating decarbonisation.