In closely timed addresses this month, senior officials at the Central Bank of Ireland have underscored the urgent need for Ireland to strengthen its economic foundations amid heightened global uncertainty. Governor Gabriel Makhlouf and Deputy Governor Vasileios Madouros emphasised that while the Irish economy enters 2026 from a position of strength, proactive measures in resilience-building and investment are essential to safeguard long-term prosperity.
This month, Governor Makhlouf delivered a clear message: building economic resilience is not optional.
Speaking against a backdrop of geopolitical tensions, accelerating trade fragmentation, technological disruption, and the accelerating effects of climate change, he warned that Ireland’s small open economy and substantial international financial sector face significant adaptation challenges.
“The implications of the ongoing transition of the international order and global trade environment are yet to be fully borne out,” Makhlouf noted, highlighting how recent developments may have sped up these shifts.
The Governor outlined five domestic priorities for the Government: expanding supply-side capacity through targeted infrastructure in housing, transport, energy, and water; bolstering the indigenous business sector to complement foreign direct investment; accumulating fiscal buffers via disciplined spending and prudent policy; enhancing household resilience by encouraging greater retail participation in financial markets; and improving access to debt and equity finance for local firms.
He also stressed the importance of working with European partners to complete the single market and craft new multilateral trading arrangements that deliver stability.
Makhlouf’s regulatory and supervisory priorities for 2026 focus on maintaining financial-sector strength against macro-financial and geopolitical risks, protecting consumers through updated safeguards, harnessing technological change (including artificial intelligence), and supporting the transition to a low-carbon economy.
He pointed to Europe’s internal market barriers—equivalent to a 45 per cent tariff on goods and 110 per cent on services—as a reminder that the EU must leverage its strengths in peace, prosperity, and potential rather than dwell on weaknesses.
Recently, Deputy Governor Vasileios Madouros reinforced these themes by focusing on the critical role of investment.
Despite robust economic growth in recent years, investment in core domestic sectors has remained subdued over the past decade, leaving infrastructure strained after the post-financial-crisis recovery.
Madouros argued that higher, sustained investment represents both an opportunity and a necessity to build resilience against profound economic and societal shifts.
He welcomed the Government’s plans for a substantial rise in public investment over the coming decade but cautioned that success depends on careful fiscal choices, improved delivery efficiency, greater dynamism among indigenous businesses, and access to diverse, resilient financing.
Progress on the EU’s Savings and Investment Union will be vital to mobilising the necessary capital.
“Raising Ireland’s domestic investment rate is an opportunity to strengthen the foundations—and resilience—of our economy into the future,” Madouros stated, adding that such investment must be both sustainable and sustained to deliver benefits for people, businesses, and overall economic performance.
Together, the two interventions paint a consistent picture: Ireland must move beyond short-term strengths to embed deeper structural resilience.
By prioritising infrastructure, indigenous enterprise, fiscal prudence, and efficient capital allocation, policymakers can position the economy to thrive amid uncertainty.
The Central Bank has committed to supporting this particular agenda through its supervisory work and forthcoming publications, including its full Regulatory and Supervisory Outlook.
As global headwinds intensify, these messages from Ireland’s central bank serve as a timely reminder that resilience and investment are not competing priorities—they are two sides of the same strategic coin.
With decisive action in the months ahead, Ireland can potentially try to convert current advantages into enduring economic security.