Makhlouf outlines priorities for Irish and European resilience

Governor Makhlouf outlined five key priorities for building Ireland's domestic economic resilience.

These include growing the supply-side capacity of the economy, particularly by managing the delivery of necessary infrastructure that acts as a constraint on sustainable growth.

He also emphasized strengthening the indigenous business sector and its contribution, complementing foreign direct investment and enhancing overall economic resilience.

Furthermore, Makhlouf stressed the importance of continuing to build fiscal buffers and creating economic space for investment through prudent fiscal policy and rigorous expenditure control.

Supporting household resilience by enabling greater retail participation in financial markets, while addressing barriers to finance for domestic businesses, forms another crucial priority.

Finally, he called for collaboration on new multilateral trading rules to ensure certainty and stability.

Underpinning these efforts is the unwavering commitment to macroeconomic stability through appropriate monetary, fiscal, and regulatory policies.

Governor Makhlouf highlighted the European Union's enduring strengths as a foundation for adaptation amidst seismic structural shifts.

These include its openness, the single market, shared values, and collective sovereignty.

He argued Europe should focus on maximizing dividends by addressing three key areas.

First, completing the single market, especially in services, and deepening external trade agreements, noting significant internal barriers.

Second, he called for developing the Savings and Investment Union by expanding European safe assets, mobilizing internal capital through retail investment, and increasing market attractiveness.

Third, Makhlouf prioritized productivity, advocating for greater technology adoption and accelerating decarbonization, rather than solely relying on regulatory simplification.