Ireland's National Recovery and Resilience Plan: Latest state of play

Briefing 20-10-2023

Ireland's National Recovery and Resilience Plan (NRRP) is relatively small compared with most Member States' plans. In absolute terms and per capita, Ireland has the second smallest allocation (after Luxembourg) under the Recovery and Resilience Facility (RRF)  initially €989 million, and following the European Commission's update of national allocations, €914.4 million in grants, to be disbursed in five instalments. Ireland has not requested loans and has not submitted a REPowerEU chapter. In May 2023, it sent a request to amend its NRRP; it includes changes to two measures. Ireland did not request pre-financing; it submitted its first payment request on 8 September 2023. Relative to the size of its economy, Ireland's RRF grants are not large: they are equivalent to around 0.3 % of the country's 2019 gross domestic product (GDP), while the total RRF amounts to 5.2 % of 2019 EU-27 GDP. Given also that spending will be spread over the years up to 2026, the RRF is not expected to have a significant direct impact on Ireland's key macroeconomic indicators. The European Commission estimates that it could increase Ireland's GDP by 0.3-0.5 % by 2026. А more significant indirect impact is expected from the overall boost to the EU economy and the associated cross-border spillover effects. The plan's overall objective is to contribute to a sustainable, equitable, green and digital recovery. It complements the government's broader domestic recovery efforts under the economic recovery plan, underpinned by the national development plan (NDP) of €165 billion, for 2021 to 2030. Although the RRF allocation amounts to less than 1 % of the total NDP investment, it will contribute to key reforms and investments. With 41.9 % of funding allocated for climate and 31.5 % for digital measures, the NRRP's16 investment and 9 reform projects will also focus on strategic EU priorities. The European Parliament participates in interinstitutional forums for cooperation and discussion on the implementation of the RRF, and scrutinises the European Commission's work. This briefing is one in a series covering all EU Member States. Second edition. The 'NGEU delivery' briefings are updated at key stages throughout the lifecycle of the plans.