The Economic Recovery Plan 2021 is a €3.5 billion stimulus package announced by the

Government of Ireland The Government of Ireland ( ga, Rialtas na hÉireann) is the cabinet that exercises executive authority in Ireland. The Constitution of Ireland vests executive authority in a government which is headed by the , the head of government. The governm ...

on 1 June 2021 to achieve rapid job creation and economic growth after the

COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...

. The plan sets out a new phase of supports, investment and policies for a new stage of economic recovery and renewal, with new measures for businesses and affected sectors, and details for existing emergency pandemic financial supports including the COVID-19 Restrictions Support Scheme,

Employment Wage Subsidy Scheme The Emergency Measures in the Public Interest (COVID-19) Act 2020 (Act of parliament, Act No. 2 of 2020; previously the Health (Preservation and Protection and other Emergency Measures in the Public Interest) Bill 2020, Bill (law), Bill No. 4 of 2 ...

and Pandemic Unemployment Payment, giving certainty to businesses and employees and for those who need it most.

Four pillars of the plan

The Economic Recovery Plan is broken down into four pillars: – Reaching 2.5 million people in work by 2024. Extension of supports * Employment Wage Subsidy Scheme (EWSS) and Pandemic Unemployment Payment (PUP) extended for the rest of 2021 with phased adjustments Practical supports such as individual advice, CV preparation and work placements * Expanded Jobs Plus Scheme to 8,000 places * Workplace Experience Programme, 10,000 participants by 2022 Upskilling and reskilling * Accelerated availability of 50,000 extra education and training places * Investment of €114m in education and training through Solas Recovery Skills Programme * 10,000 additional apprenticeships per annum by 2025 – Helping business to recover and embrace new opportunities. Extension and enhancement * Extension and enhancement of the COVID-19 Restrictions Support Scheme (CRSS) * Extension of the Commercial Rates Waiver and Debt Warehousing Schemes * New Business Resumption Support Scheme * SME and Entrepreneurship Growth Plan – 2,000 additional SMEs to begin exporting by end 2025 * IDA 2021-2024 Strategy – aims to win 800 total investments to support creation of 50,000 jobs Support and planning for sectors that have been particularly impacted by the pandemic * Lower Tourism VAT rate of 9% extended to 1 September 2022 * Live Performance Support Scheme (LPSS) * Music and Entertainment Business Assistance Scheme * New events sector support scheme *

Fáilte Ireland Fáilte Ireland is the operating name of the National Tourism Development Authority of the Republic of Ireland. This authority was established under the National Tourism Development Authority Act of 2003 and replaces and builds upon the functions ...

initiatives including Business Continuity Scheme * Roadmap for Aviation Recovery Building resilient, productive and innovative businesses for the future * Digital Transformation of Enterprise Fund * National Artificial Intelligence Strategy * Technological University Fund * National Grand Challenges Programme – Building on the lessons of the pandemic. Supporting a digital and green economy * €915 million of funding under the European Recovery and Resilience Facility * Retrofit Loan Scheme Balanced regional development * Updated National Development Plan *

Brexit Brexit (; a portmanteau of "British exit") was the withdrawal of the United Kingdom (UK) from the European Union (EU) at 23:00 GMT on 31 January 2020 (00:00 1 February 2020 CET).The UK also left the European Atomic Energy Community (EAEC or ...

Adjustment Reserve (over €1 billion) * Remote Working Strategy Fair recovery * Social dialogue * Statutory sick pay * Wellbeing Framework * Just Transition

Key elements of the plan

* A substantial extension of the

(EWSS), the Pandemic Unemployment Payment (PUP), and the COVID-19 Restrictions Support Scheme (CRSS), and considerable enhancement of both EWSS and CRSS ** The Employment Wage Subsidy Scheme will be extended beyond 30 June until 31 December 2021 ** The Pandemic Unemployment Payment will be extended in full for existing claimants beyond 30 June to 7 September. The scheme will close to new applicants from 1 July in recognition that, at that stage, there should be no new job lay-offs that are directly attributable to public health restrictions *** The current weekly rates of support will be gradually reduced over three phases by €50 increments. The first phase of rate changes will apply from 7 September provided progress on reopening continues. Two further phases of changes will take place over the following months, on 16 November and 8 February, if progress continues as expected *** PUP claims for students will be extended until the start of the 2021/2022 college year (final payment on 7 September). In addition, €10 million in assistance will provide supports for the forthcoming academic year for students impacted by COVID-19 * Complemented by a range of initiatives including extension of Commercial Rates Waiver, new additional Business Resumption Support Scheme, and extension of Tax Debt Warehousing Scheme * Continuing to provide supports for worst-affected sectors including aviation, tourism and events as they continue to reopen, including the extension of 9% VAT rate for

tourism Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...

and

hospitality Hospitality is the relationship between a guest and a host, wherein the host receives the guest with some amount of goodwill, including the reception and entertainment of guests, visitors, or strangers. Louis de Jaucourt, Louis, chevalier de J ...

sector, supports for live entertainment and events sector, and a roadmap for the

aviation Aviation includes the activities surrounding mechanical flight and the aircraft industry. ''Aircraft'' includes fixed-wing and rotary-wing types, morphable wings, wing-less lifting bodies, as well as lighter-than-air craft such as hot air ...

sector ** A roadmap for the recovery path for the aviation sector is rooted in the reopening of international travel, supports for workers and sectoral specific supports *** Non-essential travel can return from 19 July and for travel within the

European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...

area, Ireland will be operating the EU Digital COVID-19 Certificate ** As part of Government's support for the tourism sector, the lower tourism and hospitality VAT rate of 9% will be extended to 1 September 2022, and

will continue its support initiatives including through its Business Continuity Scheme or equivalent schemes * Strategic investment that will drive the digital and green transition, as well as supporting social and economic recovery and job creation * Overarching ambition to exceed pre-crisis employment levels by reaching 2.5 million people in work by 2024 * Help people back into work, and into new sustainable job opportunities through increased activation, and reskilling and upskilling opportunities * A pathway to a strong, resilient economy, aligned with the Government's green and digital ambitions * Learn lessons from the pandemic by building a balanced and inclusive recovery, which leverages new ways of working, and by improving labour market supports and living standards * Ensuring sustainable public finances for a lasting recovery

References

External links

Gov.ie – Economic Recovery Plan
{{COVID-19 pandemic in the Republic of Ireland 2021 in economics Economic impact of the COVID-19 pandemic in the Republic of Ireland Economy of the Republic of Ireland Economy of Europe Economic responses to the COVID-19 pandemic Economic stimulus programs

Four pillars of the plan

Key elements of the plan

See also

References

External links