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Overview of Economic Recovery Plan 2021
From Department of the Taoiseach
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Taoiseach, Micheál Martin, Tánaiste Leo Varadkar and Minister Eamon Ryan today launched the Economic Recovery Plan 2021 to achieve rapid job creation and economic growth after the pandemic.
The plan also sets out a new phase of supports for the next stage of recovery, and aims to exceed the pre-crisis employment levels of 2.5 million people in work by 2024.
Initial funding of €915 million through the National Recovery and Resilience Plan, under the European Recovery and Resilience Facility, plus the forthcoming revised National Development Plan, will create a green and digital job revolution.
The plan sets out new measures for businesses and affected sectors as the economy opens up, and details for existing emergency pandemic financial supports including the Covid Restrictions Support Scheme (CRSS), Employment Wage Subsidy Scheme (EWSS) and Pandemic Unemployment Payment (PUP), giving certainty to businesses and employees and for those who need it most.
The plan is all about new jobs, more jobs, better jobs - helping people back to work and businesses to reopen, helping to get our public finances back in order, and developing a much more inclusive society and economy. There’s a very strong emphasis on upskilling and research, providing targeted support for those sectors most impacted, and investing in areas for long-term growth.
Speaking at today’s launch, the Taoiseach said:
“This Economic Recovery Plan will kick start a jobs-led recovery and propel the economy forward to a more sustainable, digital and secure future. The renewed supports, investments and policies set out in this Plan will position us firmly on this pathway.We will help people return to work through reskilling and upskilling opportunities; drive a renewed innovative economy; and invest in infrastructure, housing and reforms for our longer-term prosperity. Our core objective is to restore, and then go beyond pre-pandemic employment levels. To not just rebuild, but to build back better. In parallel, we will ensure that decarbonisation and digital transitions provide opportunities for all our people. Our policies to encourage economic growth must complement those to improve living standards for all our people across the length and breadth of the island.”
The Tánaiste noted that:
“Today’s announcement represents a stimulus of more than €4bn-plus for the Irish economy designed to get people back to work, businesses open and prospering again while also planning for the long term through increased investment in research and skills, the digital transformation, climate action and public transport. In doing so, we are going for growth and backing business as we want our economy to recover lost ground quickly. I believe the actions announced today will be welcomed by business including the extension of the wage subsidy scheme until the end of the year, the extension of the 9% VAT rate well into next year, a significant re-opening payment for businesses re-opening in June and July, the extension of the commercial rates holiday and tax warehousing."
A regionally balanced, and inclusive recovery is a core aim of this plan. Speaking at the event, Minister Eamon Ryan said:
“Balancing the development of our regions, reducing disparities and ensuring a just transition will be central as we move towards a new green economy. In investing in our economic recovery we are simultaneously investing in the renewal of our economy, progressing to a decarbonised, more digitalised future with opportunities for all our people across sectors and regions. This plan will see a series of exciting investments in the areas of climate change, including a loan guarantee system to provide for the low-cost retrofitting of homes and ambitious spending on commuter rail in Cork.”
The Tánaiste added that the plan will focus on the future economy:
“The National Economy Recovery Plan is all about thinking long-term when it comes to our economy. It’s about rapid recovery and also about the more modern and inclusive economy we want to build post-pandemic. It’s about new jobs, more jobs and better jobs all over the country. It sets out how we can restore the public finances to health by creating jobs and supporting enterprise. It also provides a vision for the post-pandemic economy which is export-orientated, digital and green in which people can expect better jobs with better pay, protections, pension and flexibility.”
The Economic Recovery Plan and associated information is available at gov.ie/recovery.