On January 3, 2025, Ireland officially submitted its second payment request under the European Union’s Recovery and Resilience Facility (RRF). This request, amounting to €115 million, is a significant step in the country’s efforts to implement its National Recovery and Resilience Plan (NRRP). The NRRP aims to address the challenges posed by the COVID-19 pandemic, enhance Ireland’s sustainability, and boost its green and digital transformation.
The RRF is a key financial mechanism of the EU’s broader economic recovery plan, NextGenerationEU, which aims to support Member States in overcoming the social and economic effects of the pandemic and to future-proof the EU economy. The funding is allocated in five instalments and is contingent upon the achievement of agreed-upon milestones and targets. Ireland has already received the first payment of €324 million, which was based on the successful completion of 36 milestones and 5 targets.
The second payment request, which is for 17 milestones and targets, reflects ongoing efforts to drive reforms and investments across several critical sectors. Key initiatives include the electrification of public transport in Cork, decarbonisation and digitalisation within the Enterprise Sector, and advancing digital skills. Additionally, the plan includes substantial investments aimed at increasing social and affordable housing provisions, supporting climate action, bridging the digital divide, and reducing regulatory barriers for small and medium-sized enterprises (SMEs).
Minister for Public Expenditure, NDP Delivery, and Reform, Paschal Donohoe, expressed his satisfaction with the progress achieved thus far and emphasized the collaborative efforts between Ireland’s government departments and the European Commission. Donohoe highlighted that the second payment request marks a crucial milestone in reaching Ireland’s €1.15 billion allocation from the RRF, with 48% of the plan’s milestones and targets now met.
The EU Commission will now assess the submission, and if the assessment confirms the completion of the agreed actions, the second payment will be approved, bringing Ireland closer to securing the full RRF allocation.
In total, Ireland’s National Recovery and Resilience Plan includes 118 milestones and targets tied to 11 reforms and 19 investments, covering a range of sectors crucial for long-term economic stability and resilience. The plan aims to align with EU-wide objectives, including allocating 37% of the funding to green measures and 20% to digitalization efforts.
Once the second payment is processed, Ireland will have secured 38% of its total €1.15 billion funding under the RRF, underlining the country’s commitment to sustainable recovery and reform as it works towards post-pandemic recovery goals.
The Recovery and Resilience Facility will remain active until 2026, with further payments tied to Ireland’s performance in achieving the outlined reforms and investments.
