Dáil Éireann Debate, Thursday - 1 April 2021
88. Deputy Michael Fitzmaurice asked the Minister for Finance the gross liability for Ireland in relation to the EU recovery and resilience facility; the amount it varies from €18.7 billion; and if he will make a statement on the matter. [17796/21]
View answerAs the Deputy will be aware, on 21st July 2020, Heads of State and Government reached agreement on the €1.074 trillion Post-2020 Multiannual Financial Framework (MFF) and €750 billion recovery plan “Next Generation EU” (NGEU), totalling €1.82 trillion. The centrepiece of the NGEU is the Recovery and Resilience Facility, made up of €312.5 billion in grants and €360 billion in loans.
In order to avail of funding under the Recovery and Resilience Facility, all Member States must submit a National Recovery and Resilience Plan. Ireland’s National Recovery and Resilience Plan must be submitted to the European Commission by 30 April 2021 and will set out a package of both reforms and public investment projects which will be implemented by 2026. The Department of Public Expenditure & Reform, working with the Departments of the Taoiseach, Finance and Enterprise, Trade & Employment, are responsible for the preparation and coordination of the National Recovery and Resilience Plan. Reforms and Investments attracting funding under the NRRP will be paid on a performance basis through the Recovery and Resilience Facility, in other words, when agreed milestones and targets are achieved, drawdown of funding can happen.
In May 2020, the European Commission produced a needs assessment underpinning the proposed NGEU. In this needs assessment the European Commission estimated that Ireland’s contributions to the NGEU package would be in the region of approximately €18.7 billion over the next thirty years. However, this estimate was inaccurate for a number of reasons and was intended only as an illustrative example of what might be and was not based on real budget figures.
At this time of crisis, the Covid recovery funds are needed now, and will be received by Member States up to 2026, but will be paid back over 30+ years. These repayments are not expected to begin for a number of years yet, and the contribution Ireland will make has yet to be determined and will depend on our share of the overall EU budget over the course of those repayments. They will also depend on what new Own Resources are agreed at EU level. It is not possible to give an accurate overall figure at this time.
