Written answers

Thursday, 26 November 2020

Department of Public Expenditure and Reform

Covid-19 Pandemic Supports

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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233. To ask the Minister for Public Expenditure and Reform the way in which Ireland plans to access the recently agreed €47.5 billion REACT-EU fund in response to Covid-19; the Departments, local authorities and agencies that can avail of the fund; and if he will make a statement on the matter. [39388/20]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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REACT-EU (Recovery Assistance for Cohesion and the Territories of Europe package) is an initiative under the European Recovery Instrument to respond to the impact of COVID-19 and prepare a green, digital and resilient recovery of the economy. REACT-EU builds on the crisis response measures delivered through the two Coronavirus Response Investment Initiative (CRII and CRII+) packages, which allowed the re-programming of funding towards the Covid 19 response. React-EU will ensure that the economic and social recovery in the context of the coronavirus pandemic continues smoothly and without interruption.

The funding allocations under REACT EU will be provided in 2021 (70%) and 2022 (30%). The Commission has advised that Ireland’s 2021 allocation will be approximately €84m (in 2018 prices, approximately €89m in current prices). The allocation for Ireland in 2022 won’t be known until the end of next year.

With regard to how React-EU can be utilised, maximum flexibility is being given to Member States to utilise the additional funding under their existing European Social Fund, European Regional Development Fund, and Fund for European Aid to the Most Deprived programmes, with an option to avail of up to 100% EU co-financing.

It should be noted that while political agreement was reached between the European Parliament and EU Member States on 18th November 2020, the regulation is still pending the final approval of the legal texts by the European Parliament Plenary and the Council. The overall envelope of REACT-EU depends on the outcome of the overall Multiannual Financial Framework negotiations which are still ongoing. Accordingly, no decision has been made as yet with regard to the detail of how React-EU will be implemented.

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