Central Bank governor reiterates call for Government to rein in spending in Budget 

Ireland risks overheating its economy unless it reins in spending, and should introduce a new fiscal rule and stick to it, European Central Bank policymaker Gabriel Makhlouf told the Financial Times in an interview published on Monday.

Ireland risks overheating its economy unless it reins in spending, and should introduce a new fiscal rule and stick to it, European Central Bank policymaker Gabriel Makhlouf told the Financial Times in an interview published on Monday.

Mr Makhlouf's comments come just over a week out from Budget 2026. 

"The economy is operating at capacity. And there's only so much more that it can take in terms of spending before you start fuelling inflation," the Irish central bank chief told the newspaper.

The Government had planning a €9.4 billion tax-and-spending package and the Government also signed off on a €112bn revised infrastructure plan to run until 2030 to tackle housing, energy, and water constraints. Last month, Mr Makhlouf said in an interview with the Business Post that there's "a risk that we’re in the wrong place" with regard to the economy, calling on Finance Minister Paschal Donohoe to rethink on what "the trade situation is telling us".

Reuters