Central Bank Governor Gabriel Makhlouf has issued a stark warning to Finance Minister Simon Harris, projecting that persistent budget spending overruns could drive the public finances into a €25.7 billion deficit by 2030.
The governor highlighted that unreliable tax revenues are compounding the fiscal pressure, creating a trajectory that threatens long-term economic stability.
The warning underscores growing concerns about fiscal discipline in an environment where revenue streams are increasingly volatile.
Makhlouf’s intervention signals a deepening rift between monetary authorities and the executive branch over the pace and scale of public expenditure.
For investors, the prospect of a multi-billion euro deficit raises questions about future borrowing costs and the potential for fiscal consolidation measures.
This development aligns with a broader trend of central bank governors globally flagging macroeconomic risks.