Ireland’s Central Bank Warns Against Excessive Spending in October Budget

Gabriel Makhlouf, governor of Ireland’s central bank, has issued a stark warning about the government’s proposed October budget, arguing that excessive spending could destabilize an already fragile economy. The budget includes a 6.4% spending increase—modest compared to previous years’ 8-9% hikes—but Makhlouf contends that further stimulus is unnecessary in a fully employed economy.

The governor’s critique follows the release of the government’s fiscal plans two weeks prior, which also proposed tax cuts and expenditure adjustments. Notably, officials pledged to scale back €9.4 billion in proposed tax reductions if global tariff rates rise beyond current levels. Makhlouf’s intervention underscores growing tensions between monetary prudence and political priorities.