Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) (ST 11046/21 INIT; ST 11046/21 ADD 1) of 8 September 2021 on the approval of the assessment of the recovery and resilience plan for Ireland
Date: 2023-06-26
Institutions: European Commission, Secretariat-General
Subjects: EU aid, Ireland, economic recovery, economic reform, energy efficiency, green economy, investment, structural adjustment, subsidised housing

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   EUROPEAN COMMISSION  Brussels, 26.6.2023  COM(2023) 373 final 2023/0216 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) (ST 11046/21 INIT; ST 11046/21 ADD 1) of 8 September 2021 on the approval of the assessment of the recovery and resilience plan for Ireland  
 
2023/0216 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision (EU) (ST 11046/21 INIT; ST 11046/21 ADD 1) of 8 
September 2021 on the approval of the assessment of the recovery and resilience plan 
for Ireland 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 
12 February 2021 establishing the Recovery and Resilience Facility1, and in particular Article 
20(1) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Following  the  submission  of  the  national  recovery  and  resilience  plan  (‘RRP’)  by 
Ireland on 28 May 2021, the Commission has proposed its positive assessment to the 
Council. The Council has approved the positive assessment by means of the Council 
Implementing Decision of 8 September 20212. 

Pursuant  to  Article  11(2)  of  Regulation  (EU)  2021/241,  the  maximum  financial 
contribution  for  non-repayable  financial  support  of  each  Member  State  should  be 
updated by 30 June 2022 in accordance with the methodology provided therein. On 30 
June  2022,  the  Commission  presented  the  results  of  that  update  to  the  European 
Parliament and the Council.   

On 22 May 2023,  Ireland made a reasoned request  to  the Commission  to propose to 
amend  the  Council  Implementing  Decision  in  accordance  with  Article  21(1)  of 
Regulation (EU) 2021/241, considering the RRP to be partially no longer achievable 
due to objective circumstances. On this basis, Ireland has submitted an amended RRP.  

The amendments to the RRP submitted by Ireland concern two measures. Ireland has 
explained  that  those  two  measures  are  no  longer  totally  achievable  in  the  given 
implementation timeline. 

The first amendment concerns measure 1.1 ‘Derisking a Low cost Residential Retrofit 
Loan  Scheme’  under  component  1  ‘Advancing  the  green  transition’  of  the  Annex  to 
the Council Implementing Decision consisting of a loan guarantee scheme that aims to 
encourage  private  investment  in  energy  efficiency.  Ireland  has  explained  that 
milestones  1  and  2  of  that  measure  are  no  longer  achievable  in  the  given 

1 
2 

OJ L 57, 18.2.2021, p. 17. 
ST 11046/21 INIT; ST 11046/21 ADD 1, not yet published.  

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implementation  timeline  because  of  unforeseeable  challenges  related  to  their 
implementation.  The  unforeseeable  challenges  concern  the  increased  technical 
requirements  for  the  implementation  of  the  measure,  highlighted  during  the  due 
diligence  procedure  carried  out  by  the  European  Investment  Bank,  and  causing  the 
involvement  of  an  additional  counter  guarantor,  namely  the  European  Investment 
Fund,  as  a  complement  to  the  European  Investment  Bank.  The  new  required 
architecture  of  the  loan  guarantee  scheme  cannot  be  initiated  within  the  initially 
planned  implementation  timeline.  On  this  basis,  Ireland  has  requested  to  extend  the 
implementation timeline of the aforementioned milestones from Q1 2022 and Q2 2022 
respectively 
those  objective 
circumstances, the Council Implementing Decision should be amended accordingly. 

to  Q3  2023  for  both  milestones,  and,  due 

to 

(6) 

(7) 

The second amendment concerns measure 3.8 ‘Increasing the provision of social and 
affordable  housing’  under  component  3  ‘Social  and  economic  recovery  and  job 
creation’ that consists of the entry into operation of the Land Development Agency as 
a commercial state agency and the entry into force of an Affordable Housing Act. The 
measure  requires  that  housing  units  be  delivered  under  the  different  schemes 
established  by  the  reform.  Ireland  has  explained  that  targets  102  and  103  of  that 
measure are no longer achievable in the given implementation timeline because of the 
implications of the Russian aggression against Ukraine and lingering uncertainty over 
the  Protocol  on  Ireland  /  Northern  Ireland.  Those  circumstances  resulted  in 
construction  materials  inflation,  rising  energy  costs  and  supply  chain  challenges  that 
delayed many projects, with the weighted costs of construction materials increasing by 
8.5% in 2021 and 17.5% in 2022 (compared to an average annual growth of 1.2% in 
the years between 2016 and 2020). Projects were delayed due to the contractors being 
unable to  meet  the  contracted price,  while the number of bids  for public  tenders fell 
due to the perceived risk involved and general concerns relating to future material and 
energy  prices.  On  this  basis,  Ireland  has  requested  to  extend  the  implementation 
timeline  of  the  aforementioned  targets  from  Q1  2022  to  Q3  2023,  and,  due  to  those 
objective  circumstances,  the  Council  Implementing  Decision  should  be  amended 
accordingly. 

The third amendment concerns the same measure 3.8. Ireland has explained that target 
104  is  no  longer  achievable  in  the  given  implementation  timeline  because  of  the 
identification  of  a  manifestly  better  approach  during  the  pre-launch  stakeholder 
engagement that took place following the submission of the RRP.  With no precedent 
for this type of equity support scheme, the  original RRP had presupposed significant 
uniformity  across  the  three  financial  institutions  participating  in  the  scheme  (in 
relation  to  IT  systems,  approval  processes,  legal  instruments,  etc).  However,  the 
stakeholder  engagement  identified  significant  variance  in  the  underlying  IT  systems, 
administrative  mortgage  approval  processes,  and  legal  instruments  to  recognise  the 
shared  equity  portion  of  new  homes  purchased  through  these  schemes.  This 
highlighted  the  need  to  establish  a  working  group,  which  ultimately  allowed  for  the 
harmonisation  of  standard  procedures  and  documentation  for  property  conveyancing 
between  the  financial  institutions  participating  in  the  scheme.  Developing  and 
implementing  this  standardisation  delayed  the  launch  of  the  scheme,  but  had  clear 
advantages: (i) it ensured greater consistency and certainty for scheme applicants, (ii) 
it created a standardised property conveyancing process, (iii) it resulted in lower legal 
fees for home purchasers across the scheme, and (iv) it guaranteed a uniform treatment 
of the shared-equity and mortgage debt for the scheme in cases of damage to property, 
default  of  repayments,  and  subsequent  sales  of  the  home.  On  this  basis,  Ireland  has 
requested to extend the implementation timeline of the aforementioned target from Q1 

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(8) 

(9) 

2022  to  Q3  2023,  and,  due  to  the  above  objective  circumstances,  the  Council 
Implementing Decision should be amended accordingly. 

The Commission considers that the reasons put forward by Ireland justify amendments 
pursuant to Article 21(2) of Regulation (EU) 2021/241. 

The Commission considers that the amendments put forward by Ireland do not affect 
the positive assessment of the RRP set out in the Council Implementing Decision of 8 
September 2021 on the  approval  of the assessment  of the RRP for  Ireland regarding 
the  relevance,  effectiveness,  efficiency  and  coherence  of  the  RRP  against  the 
assessment criteria laid down in Article 19(3), points (a), (b), (c), (d), (e), (f), (g), (h), 
(i), (j) and (k). 

(10)  Following  the  positive  assessment  of  the  Commission  concerning  the  amended  RRP 
with the finding that the RRP satisfactorily complies with the criteria for assessment 
set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V 
to  that  Regulation,  this  Decision  should  set  out  the  amendments  to  the  reforms  and 
investment projects necessary to take account of the amended RRP. 

(11)  The estimated total cost of the amended RRP is EUR 989 938 300. As the amount of 
the  estimated  total  costs  of  the  amended  RRP  is  higher  than  the  updated  maximum 
financial  contribution  available  for  Ireland,  the  financial  contribution  allocated  to 
Ireland’s amended RRP should be equal to the total amount of the updated maximum 
financial contribution available for Ireland. 

(12)  Council Implementing Decision 11046/21 of 8 September 2021 on the approval of the 
assessment of the recovery and resilience plan for Ireland should therefore be amended 
accordingly. 

HAS ADOPTED THIS DECISION:  

Implementing  Decision  (EU)  11046/21  of  8  September  2021  on  the  approval  of  the 
assessment of the recovery and resilience plan for Ireland is amended as follows: 

Article 1 

(1) Article 1 is replaced by the following:  

“Article 1 

Approval of the assessment of the RRP 

The  assessment  of  the  amended  RRP  of  Ireland  on  the  basis  of  the  criteria  provided  for  in 
Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects 
under the RRP, the arrangements and timetable for the monitoring and implementation of the 
RRP,  including  the  relevant  milestones  and  targets,  the  relevant  indicators  relating  to  the 
fulfilment  of  the  envisaged  milestones  and  targets,  and  the  arrangements  for  providing  full 
access  by  the  Commission  to  the  underlying  relevant  data  are  set  out  in  the  Annex  to  this 
Decision.”; 

(2) In Article 2, paragraph 1 is replaced by the following: 

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“The Union shall make available to Ireland a financial contribution in the form of non-
repayable support amounting to EUR 914 368 618.3 An amount of EUR 914 368 618 shall be 
available to be legally committed by 31 December 2022 ”.  

(3) The Annex is amended as follows: 

(a) Section 1: Reforms and Investments under the Recovery and Resilience Plan is amended 
as follows: 

(i) in point 1. Description of reforms and investments; A. Component 1: Advancing the green 
transition;  A.2.  Milestones, 
timetable  for  monitoring  and 
implementation  for  non-repayable  financial  support,  rows  1  and  2  are  replaced  by  the 
following: 

indicators,  and 

targets, 

‘1  

1.1   

Derisking  a 
cost 
Low 
Residential 
Retrofit 
Loan 
Scheme   

Milestone  Establishment  of  the 
financial  instrument: 
signature 
of 
contractual 
agreement  between 
relevant 
the 
ministries  and 
the 
SBCI and concluding 
the 
related 
investment 
strategy/policy  

of 

-
the 
Signing 
agreement 
and 
publication  of  the 
investment 
related 
to 
strategy/policy 
ensure  at 
least  a 
medium-depth 
retrofit  for  at  least 
75%  of  disbursed 
loans  

-

-

Q3  2023  The  relevant  ministries  shall 
conclude  an  agreement  with 
Strategic  Banking  Corporation 
of  Ireland,  and  the  financial 
instrument shall be established, 
the 
including 
related 
investment 
strategy/policy, 
specifying  that  at  least  75%  of 
loans  under  the  loan  guarantee 
scheme  shall  be  disbursed  for 
financing  retrofit  works.  The 
agreement  and  the  investment 
strategy/policy  shall  be  in  line 
with  Commission’s  Guidance 
Note  of  22  January  2021 
related to financial instruments, 
ensuring  compliance  inter  alia 
with  DNSH  at  the  level  of  all 
investments 
downstream 
supported  by 
the  guarantee 
scheme.  The  agreement  shall 
ensure  that  on  average,  these 
retrofit  works  shall  achieve  at 
level 
least  a  medium-depth 
in 
as 
renovation 
Commission  Recommendation 
on  Building  Renovation  (EU) 
2019/786.  

defined 

to 

The  loans  granted  under  the 
scheme  shall  not do significant 
harm 
environmental 
objectives  within  the  meaning 
of  Article  17  of  Regulation 
into 
(EU)  2020/852, 
account  the  description  of  the 
measure  and 
the  mitigating 
steps  set  out  in  the  recovery 
in 
and 

resilience 

taking 

plan 

3 

This  amount  corresponds  to  the  financial  allocation  after  deduction  of  Ireland’s  proportional  share  of 
the  expenses  of  Article  6(2)  of  Regulation  (EU)  2021/241,  calculated  in  accordance  with  the 
methodology of Article 11 of that Regulation. 

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require 

established 

the  DNSH 
accordance  with 
Technical 
Guidance 
(2021/C58/01).  In  particular, 
the  measure  shall  comply  with 
relevant  EU 
and  national 
environmental  legislation,  and 
the  economic 
shall 
operators  carrying  out 
the 
construction  works  to  ensure 
that at least 70% (by weight) of 
the  non-hazardous  construction 
and 
waste 
demolition 
(excluding  naturally  occurring 
material referred to in category 
17  05  04  in  the  European  List 
by 
of  Waste 
Decision  2000/532/EC  of  3 
May  2000  replacing  Decision 
94/3/EC  establishing  a  list  of 
wastes  pursuant  to  Article  1(a) 
of 
Directive 
75/442/EEC  on  waste  and 
Council  Decision  94/904/EC 
establishing  a  list  of  hazardous 
waste  pursuant  to  Article  1(4) 
Directive 
of 
91/689/EEC 
hazardous 
on 
waste (notified under document 
1147)) 
C(2000) 
number 
generated  on  the  construction 
site  shall  be  prepared  for  re-
use, 
other 
including 
recovery, 
material 
backfilling  operations  using 
waste 
other 
materials,  in  accordance  with 
the waste hierarchy and the EU 
Construction  and  Demolition 
Waste Management Protocol.  

substitute 

recycling 

Council 

Council 

and 

to 

-

-

Q3  2023  The  contractual  agreement  to 
avail  of  the  guarantee  facility 
under  the  scheme  shall  have 
been  signed  by  at  least  one 
participating  credit  institution 
and the guarantors.   

‘2  1.1   

Milestone  First  loan  guarantee 

contract signed  

Derisking  a 
Low 
cost 
Residential 
Retrofit 
Loan 
Scheme   

-
first 
The 
participating  credit 
institution  signs  the 
guarantee 
agreement 
the scheme  

under 

(ii) in point 1. Description of reforms and investments; C. Component 3: Social and economic 
recovery and job creation; C.1. Description of the reforms and investments for non-repayable 
financial  support;  Reform:  3.8  Increasing  the  provision  of  social  and  affordable  housing, 
paragraph 4 is  replaced by the following:  “The reform  shall be completed by 30 September 
2023.”; 

(iii)  in  point  1.  Description  of  reforms  and  investments;  C.  Component  3:  Social  and 
economic  recovery  and  job  creation;  C.2.  Milestones,  targets,  indicators,  and  timetable  for 
monitoring and implementation  for non-repayable financial  support, rows 102, 103 and 104 
are replaced by the following: 

EN 

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-  Num
ber 

0  100  Q
3 

20
23 

‘102 

3.8 

Increasing 
The 
Provision 
Of  Social 
And 
Affordabl
e Housing 

Target  Homes 

made 
for 
available 
sale  through  the 
new  Affordable 
Purchase 
for 
scheme 
homes on public 
lands 

-  Num
ber 

0  450  Q
3 

20
23 

‘103 

3.8 

Target  Homes 

delivered  under 
the  cost  rental 
scheme  

Increasing 
The 
Provision 
Of  Social 
And 
Affordabl
e Housing 

At  least  100  homes  shall 
have  been  made  available 
for 
the 
Affordable Purchase Scheme 
for homes on public lands.  

through 

sale 

Eligibility  shall  have  been 
assessed  on  the  First  Time 
Buyer  income  capacity  and 
incapacity 
the 
to  afford 
at  open  market 
homes 
values,  and  prioritised  by, 
inter alia, their time living in 
the  local  authority  area,  and 
home  size  compared  to  the 
family size. 

Homes 
shall  have  been 
considered available for sale 
when  construction  has  been 
completed  and  applications 
from eligible applicants have 
been accepted. 

relevant 
Compliance  with 
national 
EU 
and 
legislation, 
environmental 
the  DNSH 
and  with 
requirements 
in 
set  out 
milestone  101  shall  have 
been ensured. 

At  least  450  homes  shall 
have  been  completed  and 
tenanted  to  middle  income 
earners in urban centres with 
a  reduction  of  at  least  25% 
on  open  market  values,  as 
defined  by  a  professional 
property valuer. 

Eligibility  shall  have  been 
defined  by  the  Minister  in 
Regulations  with  reference 
to 
on 
incomes. 

Statistical 

data 

The  scheme  shall  apply  to 
in  Dublin,  Cork, 
homes 
Galway, 
Limerick, 
Waterford  and  the  Greater 
Dublin area. 

relevant 
Compliance  with 
national 
EU 
and 
legislation, 
environmental 
the  DNSH 
and  with 
requirements 
in 
set  out 
milestone  101  shall  have 
been ensured. 

At  least  100  homes  shall 
have  been  made  available 
for  sale  to  purchasers  who 

‘104 

3.8 

Increasing 

Target  Homes  made 
for 
available 
to 
sale 

-  Num
ber 

0  100  Q
3 

20
23 

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The 
Provision 
Of  Social 
And 
Affordabl
e Housing 

purchasers  who 
of 
avail 
the 
support 
equity 
scheme 

avail  of  the  equity  support 
scheme.  

Subject 
to  a  measurable 
affordable  need,  purchasers 
shall  avail  of  equity  support 
of up to 30% of open market 
values. 

relevant 
Compliance  with 
national 
EU 
and 
legislation, 
environmental 
the  DNSH 
and  with 
requirements 
in 
set  out 
milestone  101  shall  have 
been ensured. 

(b) Section 2: Financial Support is amended as follows: 

(i)  in  point  1.  Financial  contribution;  1.1.  First  Instalment  (non-repayable  support),  rows  1, 
102, 103, 104 and 2 are deleted; 

(ii)  )  in  point  1.  Financial  contribution;  1.1.  First  Instalment  (non-repayable  support),  the 
Instalment amount of “EUR 395 586 614” in the final row and column is replaced by “EUR 
323 803 933”; 

(iii)  in  point  1.  Financial  contribution;  1.2.  Second  Instalment  (non-repayable  support),  the 
following rows are inserted after row 94: 

1 

1.1  Derisking  a  Low  cost  Residential 
Retrofit Loan Scheme  

Milestone 

the 

Establishment 
financial 
of 
instrument:  signature  of  contractual 
relevant 
agreement 
and 
ministries 
concluding 
investment 
strategy/policy 

between 
and 
the 

the 
related 

SBCI 

the 

2 

102 

103 

104 

1.1  Derisking  a  Low  cost  Residential 
Retrofit Loan Scheme  

Milestone 

First loan guarantee contract signed 

3.8 Increasing The Provision Of Social  And 
Affordable Housing 

Target 

Homes made available for sale through 
the  new  Affordable  Purchase  scheme 
for homes on public lands 

3.8 Increasing The Provision Of Social And 
Affordable Housing 

Target 

Homes  delivered  under  the  cost  rental 
scheme  

3.8 Increasing The Provision Of Social  And 
Affordable Housing 

Target 

Homes  made  available  for  sale  to 
purchasers  who  avail  of  the  equity 
support scheme 

(iv)  in  point  1.  Financial  contribution;  1.2.  Second  Instalment  (non-repayable  support),  the 
Instalment amount of “EUR 197 793 307” in the final row and column is replaced by “EUR 
224 817 238”; 

(v)  in  point  1.  Financial  contribution;  1.3.  Third  Instalment  (non-repayable  support),  the 
Instalment amount of “EUR 197 793 307” in the final row and column is replaced by “EUR 
182 873 724”; 

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(vi)  in  point  1.  Financial  contribution;  1.4.  Fourth  Instalment  (non-repayable  support),  the 
Instalment amount of “EUR 148 344 980” in the final row and column is replaced by “EUR 
137 155 293”; 

(vii)  in  point  1.  Financial  contribution;  1.5.  Fifth  Instalment  (non-repayable  support),  the 
Instalment amount of “EUR 49 448 326” in the final row and column is replaced by “EUR 45 
718 429”; 

This Decision is addressed to Ireland. 

Done at Brussels, 

Article 2 

For the Council 
The President 

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