Latest news with #Makhlouf
Irish Examiner
9 hours ago
- Business
- Irish Examiner
Central Bank governor: US-EU trade deal will 'dampen' growth
The US imposition of 15% tariffs on EU goods will 'dampen economic growth' although it will be partially offset by 'reducing uncertainty' and the likelihood of a more damaging trade war that has dominated the economic environment since the start of the year, Central Bank of Ireland governor Gabriel Makhlouf has said. On Sunday, the EU and US agreed the framework of a trade deal which will see tariffs of 15% placed on imports from the bloc to the US. Writing in a blog post, Mr Makhlouf said there was insufficient detail to provide a considered analysis of the deal but these tariffs will require a mix of absorption by firms, which means reducing their profits, or increasing the cost of these goods for US consumers. 'Overall, compared to six months ago, US tariffs of 15% on EU goods will dampen economic growth, although it will be partially offset by reducing uncertainty and the likelihood of a more damaging trade war that has dominated the economic environment since the start of the year,' he said. However, Mr Makhlouf said he would refrain from commenting further on the deal given the 'unpredictability that has been such an obvious feature of US Administration policy over the last six months', and the "fact that details matter'. Last week, Mr Makhlouf, and his colleagues on the ECB Governing Council, decided to keep interest rates where they are for the time being. On this, he said 'inflation was on track to stabilise at our 2% target in the medium term'. On the inflation picture in Ireland, Mr Makhlouf said the Irish economy and public finances have 'entered this period of heightened uncertainty from a strong position but there are also underlying vulnerabilities that need to be managed carefully'. Given the publication of the National Development Plan as well as the Summer Economic Statement last week, Mr Makhlouf said fiscal policy has to 'strike a balance between delivering on the necessary rise in public capital investment in the coming years' and 'current spending demands that seek to maintain or enhance existing levels of public services'. On the interest rate decision from last week, Mr Makhlouf said he believes they've reached a point in the easing cycle 'where we can wait and see whether the data and evidence indicates the need for a change in our monetary policy stance'. 'We are not committing to a particular rate path, and will continue to take account of new information when it arrives,' he said. The next ECB meeting is in September.
L'Orient-Le Jour
21-07-2025
- Entertainment
- L'Orient-Le Jour
Georgia Makhlouf, wins inaugural Mediterranean Readers' Prize in Perpignan
Franco-Lebanese author Georgia Makhlouf has won the first-ever Mediterranean Readers' Prize, awarded by the ' Des livres et nous ' (Books and Us) circle at Perpignan's Media Library, for her novel " Pays Amer" (Bitter Country). The result was announced after a vote by readers involved in the initiative, which is organized by the city's librarians. The new award is a participatory offshoot of the prestigious Mediterranean Prize and honors a contemporary work that resonates widely with readers. Makhlouf's novel was praised for the originality and depth of its writing, reflecting the tensions and cultural echoes of the Mediterranean region. "Pays amer" is a work of fiction freely inspired by the life of Marie al-Khazen (1899-1983), the first Lebanese woman photographer. Makhlouf will receive the prize this fall in Perpignan, alongside the other winners of the 2025 Mediterranean Prize. This year's laureates, announced in April, also include another Lebanese author, Carmen Boustani, who won the Mediterranean Essay Prize for " May Ziadé, la passion d'écrire" (May Ziade, a Passion of Writing). Pierre Adrian received the Mediterranean Prize for " Hôtel Roma" (Roma Hotel), Dimitris Sotakis won the Mediterranean Foreign Prize for " Demi-cœur" (Half-heart), Clara Breteau earned the First Novel Prize for " L'avenue de verre" (Glass Avenue), and Olivier Catel received the Spiritualities Prize for " Jérusalem, Un cœur de paix" (Jerusalem, A Heart of Peace).
Irish Daily Mirror
30-06-2025
- Business
- Irish Daily Mirror
Central Bank Governor sends stark warning to Paschal Donohoe about Budget 2026
Budget 2026 will need to 'entail trade-offs' and require the Government to make 'choices and commitments' on spending and tax, the Central Bank Governor has warned. In Governor Gabriel Makhlouf's annual letter to Finance Minister Paschal Donohoe ahead of Budget 2026 in October, he warned of the dangers posed by the 'narrow' income tax rates. The Government has repeatedly narrowed the tax base by changing workers' tax rates. This has been done by changing the USC rates and bands and the cutoff for the higher income tax rate. There have also been changes to VAT rates, with the Government already signalling further changes in Budget 2026 that would see the rate for hospitality permanently drop to nine per cent. However, Mr Makhlouf warned that global uncertainty and impending tariffs mean the Corporation Tax is unreliable and the Government will need to make 'trade-offs'. He wrote: 'In my view, current economic and fiscal conditions imply that budgetary policy is now in a good position to address the following three priorities: improving resilience and broadening the tax base given risks to the sustainability of corporation tax; addressing infrastructure gaps in a sustainable manner; and planning for the fiscal impact of long-term challenges. 'Achieving progress across these three areas will entail trade-offs and require choices and commitments to be made on public expenditure and taxation, along with reforms to improve efficiency in the delivery of public capital expenditure and the crowding-in of private investment. 'The right choices made in a timely manner can boost long-term potential growth, safeguard the public finances and underpin sustainable growth in living standards for the community as a whole.' Mr Makhlouf noted that changes in the global economy 'transmit more directly to Ireland than most other countries' and that changes to US trade, tax or economic policy could 'have negative implications for the public finances, the labour market, and the economy more generally' in Ireland. He further warned that economic growth projections are being revised downwards due to the tariffs, and that the fiscal policy created by the Irish Government is 'particularly important for ensuring sustainable economic growth and inflation'. He told Mr Donohoe that 'a rapidly growing economy and exceptional Corporation Tax receipts could be threatened in the coming years'. He continued: 'Analysis by Central Bank staff also points to vulnerability arising from the relative narrowness of the income tax and VAT bases in Ireland. 'The income tax base is highly concentrated, with 8.5 per cent of the highest-income taxpayers in Ireland accounting for 56 per cent of aggregate personal income tax revenue. 'And the VAT base also appears relatively narrow by EU comparison, owing to both changes in the composition of household expenditure over time as well as the widespread application of reduced and zero rates to a variety of goods and services.' He added: 'The medium-term resilience of the public finances points to a need to broaden the tax base to increase government revenue as a share of national income so as to address known emerging funding needs and to mitigate the reliance on corporation tax receipts.' Elsewhere, the Government has been slated following confirmation that cuts to student fees will not be kept as part of Budget 2026 and fees will revert to €3,000. Higher Education Minister James Lawless confirmed that the previous €1,000 cut had been part of a cost-of-living package and 'as things stand,' it will not be repeated. Sinn Féin's Pearse Doherty branded the news a 'scandalous slap in the face for young people and their families'.
RTÉ News
30-06-2025
- Business
- RTÉ News
Central Bank chief warns Finance Minister of VAT 'vulnerability'
Central Bank Governor Gabriel Makhlouf has warned the Minister for Finance Paschal Donohoe about the vulnerability of VAT as a source of revenue, as the Government plans to cut the rate of the tax for the hospitality and retails sectors. The Coalition promised to change the tax for those sectors in the Programme for Government following commitments given during last year's General Election. However, in his annual letter to the Minister for Finance ahead of Budget 2026, Mr Makhlouf said Ireland's "VAT base appears relatively narrow by EU comparison owing to both changes in the composition of household expenditure over time as well as the widespread application of reduced and zero rates to a variety of goods and services." The Governor also warned about the "narrowness" of income tax as a source of funds. He said the tax was "highly concentrated with 8.5% of the highest-income taxpayers in Ireland accounting for 56% of aggregate personal income tax revenue (income tax and USC)." Mr Makhlouf also repeated the Central Bank's concern about the Government about relying on excess corporation tax. He said if those receipts were to fall at a time of a reduction in multinational activity and a fall in investment it could result in a budget deficit of 4% in national income by 2030 in the absence of corrective action. Mr Makhlouf also pointed out taxes had increased significantly over recent years "well above long run historic averages."
Irish Independent
30-06-2025
- Business
- Irish Independent
'Credible' fiscal anchor needed, Central Bank governor says
In his annual letter to the Finance Minister ahead of Budget 2026, Gabriel Makhlouf also warned that the need to widen the narrow tax base has become more immediate. An analysis by Central Bank staff has found that the Government will need to spend an additional €265bn between now and 2050 to fund higher age-related spending and to meet housing and net-zero targets. In that context, Mr Makhlouf has told Paschal Donohoe that it is important the Government keeps putting money into two long-term savings funds, but that they are not seen as a panacea. 'For example, the Future Ireland Fund will be insufficient – on its own – to fund the higher level of public expenditure required to meet the needs of an older population and to fund climate and housing investment,' his letter said. 'Taking prompt and concrete action to broaden the tax base would help to ensure that additional known expenditure needs can be met sustainably even if corporation tax was to decline significantly.' The Central Bank governor also believes that public investment alone will not be enough to fix the housing shortage and to build the necessary infrastructure. 'Fiscal and broader public policy should more actively consider reforms to crowd-in private investment and to promote productivity growth,' he said. The governor writes to the Minister for Finance every year before the Budget, to provide analysis and comment. This year's letter repeats earlier calls by the regulator for the Government to put a ceiling on its spending. 'A credible fiscal anchor is needed to guard against repeating mistakes of the past and to support rigorous expenditure control and enable longer-term investment,' the letter says. The last government introduced a rule in 2021 to limit the increase in spending to 5pc a year, net of taxes. The rule was never adhered to, and this government has not set a new one. There are signs that a benign combination of factors – including exceptional corporation tax receipts and a rapidly growing economy – could be threatened in the future. The risks of a loss of corporation tax, and other taxes that depend on multinationals, have increased due to recent international developments. ADVERTISEMENT Mr Makhlouf said the Central Bank's analysis of what would happen if 'excess' corporation tax was lost, and there was a reduced investment by the multinational sector in Ireland, was that the budget deficit could rise to over 4pc of national income by 2030. Foreign-owned multinationals in the manufacturing sector and ICT generate about 20pc of all tax and PRSI, his letter points out. In addition, the income tax base is highly concentrated with 8.5pc of the highest earners paying 56pc of income tax and USC. 'The VAT base also appears relatively narrow by EU comparison owing to both changes in the composition of household expenditure and the widespread application of reduced and zero rates to a variety of goods and services.'
