Ireland has been given the green light by the European Commission to postpone a number of its targets in an application for funding to deal with the costs of the Covid-19 pandemic and to meet climate and digitalisation goals.
The “recovery and resilience facility” is an EU initiative designed to mitigate the economic and social impact of the pandemic and make European economies and societies better prepared for the challenges of green and digital transitions.
The Government made an application to the commission two years ago for €915 million from the €750 billion fund. There were about 20 projects proposed, which were grouped under three different broad areas.
These were advancing the green transition to a low-carbon economy, expanding digital reforms and transformation and social and economic recovery, including job creation.
The Government submitted its plan on how it would spend the funds, outlining a mix of investments and reforms to make the economy greener, improve digital infrastructure and boost economic growth.
Among the items to receive funding are a loan guarantee system for the low-cost retrofitting of homes, a plan to expand Cork commuter rail, which will receive €184 million, and supports for SMEs and exporters to address emissions.
The commission received a request from Dublin to modify its recovery and resilience plan on May 22nd.
It said the proposed modification of the plan involved “targeted amendments” to two measures. The first measure is aimed at encouraging private investment in energy efficiency through a guarantee scheme.
“Ireland has requested to postpone the completion date of two implementation milestones linked to this measure, due to unforeseen technical hurdles,” it said.
In its application for a postponement, Dublin referred to “exceptional construction delays” resulting from supply chain issues caused by Russia’s war of aggression against Ukraine.
The second measure is aimed at increasing the supply of social and affordable housing.
“Ireland has requested to postpone the completion date of three targets linked to this measure, due to delays in the construction process and other implementation issues,” the commission said.
“Ireland’s request to modify its plan is based on the need to factor in objective circumstances which make particular milestones or targets no longer achievable within the original timeline.”
In a statement on Monday, the commission said it considered the circumstances “justify the amendments requested” by Ireland.
“Following an assessment of the revised plan against the criteria ... the commission said that the Irish plan still complies with them and that its overall ambition is not affected by the amendments.”
The European Council will now have four weeks to adopt the commission’s proposal approving the revised plan.
