Taoiseach, Micheál Martin, Tánaiste Leo Varadkar and Minister Eamon Ryan today (1 June) 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.

Providing certainty to businesses

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.

Measures are set out to help people back to work and businesses to reopen, with a strong emphasis on upskilling and research.

‘Kick-starting a jobs-led recovery’

An Taoiseach said at the launch: “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 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.”

€4B stimulus plan

Tánaiste Leo Varadkar said that the announcement represented a stimulus of more than €4 billion-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,” Mr Varadkar said.

“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”. 

Recovery’s four pillars

Minister Eamon Ryan said that balanced regional development, reducing disparities, and ensuring a just transition will be central in the move towards a new green economy.

The Economic Recovery Plan is broken down into four pillars:

1)  Helping people back into work by extending labour-market supports, and through intense activation and skills,

2)  Re-building sustainable enterprises through targeted investments and policies to make enterprises more resilient, innovative and productive,

3)  A balanced and inclusive recovery through strategic investment, balanced regional development, and improving living standards, and,

4)  Ensuring robust, sustainable public finances.