Minister Chambers welcomed Ireland's second payment under the EU's Recovery and Resilience Facility

The Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers, has today welcomed Ireland’s second payment under the EU’s Recovery and Resilience Facility (RRF).

Ireland will receive €1.15 billion in grants over the lifetime of the RRF. Payments under the RRF are performance-based and depend on the successful implementation by Ireland of the investments and reforms as set out in its National Recovery and Resilience Plan (NRRP). The plan covers the priorities of Advancing the Green Transition, Accelerating and Expanding Digital Reforms and Transformation, Social and Economic Recovery and Job Creation and REPowerEU.

Minister Chambers said today:

“I am pleased to announce the receipt of €115 million today marking the successful completion of Ireland’s second payment request and further progression towards implementing our National Recovery and Resilience plan in full. With this payment, Ireland has received 38% of our overall allocated funding, which is worth €1.15 billion, and marks the successful achievement of 48% of the milestones and targets within our plan”

Minister for Finance, Pascal Donohoe said:

“The Recovery and Resilience Facility has played an important part in Europe’s recovery from the COVID-19 pandemic and in its response to subsequent economic shocks caused by geopolitical turmoil. This €115 million payment today marks a significant step in the delivery of Ireland’s plan and reflects the government’s determination to maximise the benefits of the RRF through the continued implementation of key reforms and investments”.

The second payment request, which relates to 17 milestones and targets and amounts to €115 million includes investments such as work to enable the future electrification of public transport in Cork; the decarbonisation and digitalisation of the Enterprise Sector and enhancing digital skills.

In addition, Ireland’s second payment request includes a series of reforms in areas including climate action; addressing the digital divide; increasing the provision of social and affordable housing, reducing regulatory barriers to entrepreneurship, and on carbon tax, health and pension reform.

The Recovery and Resilience Facility (RRF) is the main pillar of the European recovery plan, NextGenerationEU, designed to provide financial aid to Member States to combat the economic and social effects of the COVID-19 pandemic and make the European economy more resistant to future shocks.

The RRF entered into force on 19 February 2021. It finances reforms and investments in EU Member States made from the start of the pandemic in February 2020 until 31 August 2026. Countries can receive financing up to a previously agreed maximum amount.

To benefit from support under the Facility, EU Governments have submitted national recovery and resilience plans, outlining the reforms and investments they will implement, with clear milestones and targets. The plans had to allocate at least 37% of their budget to green measures and 20% to digital measures.

The Recovery and Resilience Facility is performance-based. This means that the Commission only pays out the amounts to each country when they have achieved the agreed milestones and targets towards completing the reforms and investments included in their plan.

Ireland’s RRF Allocation is €1.15 billion, including REPowerEU. The National Recovery and Resilience Plan covers 11 reforms and 19 investments with 118 associated milestones and targets. Payment is contingent on achievement of the milestones and targets in each payment instalment. This payment request was formally submitted to the Commission on 23 December 2024 and covers a total of 17 milestones and targets and amounts to €115 million.

RRF projects are pre-funded through the Estimates processes and the National Development Plan, with the RRF allocated funding being recouped from the EU after the milestones and targets have been achieved.

The RRF allocation will be paid to Ireland in five instalments. Ireland received the first instalment of €324 million in July 2024.

The remaining three payment requests will be formally submitted to the European Commission for assessment. Ireland is on track to submit the third payment request for assessment in the coming weeks. This third payment request has a value of €240 million, and will mark Ireland having completed 60% of the milestones and targets within the NRRP.

Ireland is reviewing the milestones and targets in the fourth and fifth payment requests with the aim of adjusting and amending the plan where necessary, in order to ensure timely delivery within the lifetime of the Recovery and Resilience Facility and to ensure that we drawdown all available funding under the facility.

The remaining two payment requests will be submitted for assessment before the end September 2026 deadline.