Dáil Éireann Debate, Tuesday - 31 May 2022
170. Deputy Louise O'Reilly asked the Minister for Finance if he is reconsidering the decision not to apply for loans under the Recovery and Resilience Fund given the uncertain economic outlook and the likelihood of increased interest rates; and if he will make a statement on the matter. [27491/22]
Amharc ar fhreagraIn July 2020, the European Council adopted a €750 billion recovery package for Europe. This package, NextGenerationEU, is Europe’s shared response to the health and economic crisis caused by COVID-19. At the heart of the package lies the Recovery and Resilience Facility. The aim of the Facility is to address the economic and social impact of the pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.
Ireland submitted its draft Recovery and Resilience Plan to the European Commission on 28 May 2021. On 16 July 2021 the Commission issued its positive assessment of the Plan. The Plan was then considered by ECOFIN on 6 September 2021, and a Council Implementing Decision was adopted by written procedure on 8 September 2021. The Plan, which has a total value of €989m, sets out the reforms and investments to be supported by an estimated grants allocation of €915m from the Recovery and Resilience Fund. Its overall objective is to contribute to a sustainable, equitable, green and digital recovery, in a manner that complements and supports the Government’s broader recovery effort.
In addition to grants, the Recovery and Resilience Fund makes provision for lending by the European Commission to Member States. Member States can request loan support at the time of the submission of their Recovery and Resilience Plan or at a different time until 31 August 2023, for approval by the European Commission before 31 December 2023.
A decision as to whether Ireland will make an application for loan funding under the Recovery and Resilience Facility will be taken at the appropriate time.
