COMMISSION STAFF WORKING DOCUMENT 2024 Country Report - Ireland Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Ireland
Date: 2024-06-19
Institutions: European Commission, Secretariat-General
Subjects: Ireland, budget policy, economic policy, economic recovery, economic reform, employment policy, energy policy, social policy, stability pact, water policy

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.6.2024  SWD(2024) 607 final  COMMISSION STAFF WORKING DOCUMENT 2024 Country Report - Ireland  Accompanying the document Recommendation for a COUNCIL RECOMMENDATION  on the economic, social, employment, structural and budgetary policies of Ireland {COM(2024) 607 final} - {SWD(2024) 600 final}  
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC AND EMPLOYMENT SNAPSHOT 

Ireland’s economic momentum 
softens 

to 

Ireland’s  economy  slowed  after  years  of 
the 
strong  growth,  mostly  due 
weakening 
of 
performance 
multinationals (1).  The  country  entered  a 
technical  recession 
in  2023,  recording  a 
decline 
in  GDP  of  3.2%  year-on-year. 
Multinationals  headquartered  in  Ireland  were 
the  driving  force  behind  this  decline.  Their 
exports  were  hit  by  global  headwinds  and  a 
normalisation  following  a  period  of  rapid 
growth.  This  was  primarily  driven  by  a  fall  in 
previously 
and 
pharmaceutical 
contract 
exports 
manufacturing. By contrast, computer services 
exports continued to grow markedly. 

chemical 
and 

buoyant 

Domestic  economic  activity  continued  to 
rise.  Despite  the  overall  slowdown  in  the 
economy,  modified  domestic  demand,  an 
indicator  that  aims  to  exclude  the  effects  of 
multinationals,  increased  in  2023.  This  rise 
was driven by consumer spending and housing 
investment.  The  strong  domestic  activity  is 
also  reflected  in  the  continued  growth  of 
sectors  not  dominated  by  multinationals, 
whose  value  added  increased  by  3.8%  in 
2023.  The  overall  economic  outlook  for  2024 
and  2025  is  positive,  with  real  GDP  growth 
projected  to  be  1.2%  in  2024  and  3.6%  in 
2025. 

Economic disparities persist 

Ireland’s  economy 
is  split  between 
domestic  and  multinational  corporations 
that  have  varying  levels  of  economic 
performance.  Although 
Ireland  maintains 
robust  overall productivity, domestic firms lag 
behind  foreign  companies  and  top-performing 
Member  States.  In  the  past  year,  labour 
productivity  among  foreign  companies  was 
seven times more than in domestic companies. 
Foreign  companies  also  significantly  outpaced 
domestic  companies  in  terms  of  gross  value 
added, employment and wage growth. 

Ireland’s  reliance  on  the  multinational 
sector for economic development exposes 
concentration  risks 
in  the  economy. 
Potential  shocks  to  a  limited  number  of  large 
firms  pose  disproportionate  risks  to  the  Irish 
economy,  creating  potential  vulnerabilities  for 
overall  exports,  employment  and  tax  receipts. 
The divergent economic performance also has 
implications  for  regional  development;  there 
are  clear  disparities  between  regions  hosting 
multinationals (in and around Dublin and Cork) 
and  regions  dominated  by  Irish-owned  small 
and  medium-sized  companies  (SMEs).  These 
areas  are  falling  behind 
in  productivity, 
innovation  and  competitiveness  (see  Annex 
17). 

financial 

labour  market 
Challenges  related  to 
dynamics, 
and 
hurdles 
innovation  constraints  weigh  particularly 
on  the  growth  of  SMEs.  As  employment 
growth by multinationals outpaces that of the 
domestic  sector,  labour  shortages  become 
more  acute  for  Irish  SMEs.  Half  of  them  cite 
difficulties in recruiting skilled workers as their 
issue (2).  Moreover,  high 
most  pressing 

(1) 
27 Country Reports was 15 May 2024. 

The cut-off date for the data used to prepare the 

(2)  Eurobarometer, 2023, SMEs and skills shortages. 

2 

 
 
 
 
Box 1: 

Ireland’s competitiveness in brief 

Ireland’s competitiveness is strong, facilitated by a supportive business environment, high levels 
of  education,  skills  and  digitalisation  and  low  regulatory  burden.  Ireland’s  ability  to  attract  foreign 
direct investment has contributed to the country having one of the highest levels of productivity in 
the EU.  

However, competitiveness challenges remain:  

•  Delays  in  critical  infrastructure  delivery,  particularly  in  housing,  energy  and 
water, which leads to significant capacity constraints and hampers the integration of new 
renewables production and industrial processes. This is exacerbated by a scarcity of labour 
and  skills  resources,  particularly  in  the  construction  sector  and  the  green  skills  domain, 
which are essential for the expansion of Ireland’s infrastructure. 

•  High concentration of economic activity in a few multinational-dominated sectors 

that leaves Ireland exposed if there is a downturn in those sectors. 

• 

Low  levels  of  investment  in  research  and  development  that  hold  back  innovation, 
productivity and growth, especially in the domestic industry.  

internationally  as 

business  costs  hinder  SMEs  ability  to  grow, 
dragging  down  Ireland’s  competitiveness.  The 
investment rate of Irish firms lags behind that 
of EU peers (3).  In addition, Irish SMEs are not 
as  engaged 
their  EU 
counterparts:  two  out  of  three  Irish  SMEs  are 
not  involved  in  exporting  activities,  limiting 
their  growth  potential.  Furthermore,  Ireland’s 
R&D  expenditure  remains  below  the  EU 
average, with a significant proportion of public 
support  channelled  through  tax  credits,  which 
only reaches a small proportion of all SMEs. 

Labour and housing shortages 
persist 

jobs  market  remains  tight,  and 
The 
employment 
is  at  record  highs.  The 
unemployment  rate  remained  low  at  4.4%  in 
April 2024. Employment growth was supported 
by an increase in labour supply, driven by both 
an increase in female participation and inward 
migration. Job vacancies recorded a significant 
have 
rise 
progressively  reduced  to  low  levels  since. 
Nevertheless,  skills  and  labour  shortages  are 
still a pressing challenge for employers across 

pandemic 

during 

but 

the 

different  skill  categories  and  sectors.  Real 
wages  have  yet  to  rebound  from  the  sharp 
decline in 2022, which continued in 2023 due 
to persistent inflation. The expected increase in 
real  wages in the forecast period needs to be 
accompanied  by  higher  productivity  growth 
and/or  changes  in  profit  margins  to  maintain 
competitiveness.  The  national  minimum  wage 
(EUR 12.70  per  hour)  in  2024  remains  below 
60%  of  the  median  wage  (EUR 13.80  per 
hour). The national minimum wage is to be set 
at  60% of the median wage from 2026 (4). 

Low housing affordability and availability 
remains a societal challenge and reduces 
Ireland’s  attractiveness  as  an  economic 
hub.  Due  to  persistent  shortfalls  in  housing 
supply, house and rental prices have increased 
by  around  a  third  over  the  past  4  years, 
almost  double  the  rate  of  inflation,  and 
starting  from  already  high  levels.  This  affects 
younger  age  groups  in  particular (5).  It  also 
makes  it  difficult  for  companies,  particularly 
SMEs,  to  attract  skilled  labour  and  for  the 
public  sector  to  maintain  sufficient  workforce 

(4)  The  civil  society  organisation  ‘Living  Wage  Technical 
Group,’ using the ‘minimum essential standard of living’ 
approach,  has  estimated  the  2024  living  wage  to  be 
EUR 14.80 per hour. 

(5)  ESRI, 2023, Housing Affordability across Europe: mixed 

(3)  Economic Insights, spring 2024. 

picture for Ireland. 

3 

 
 
 
 
Box 2: 

UN Sustainable Development Goals (SDGs) 

Ireland  performs  well  in  all  SDGs  related  to  macroeconomic  stability  and  productivity 
(SDGs 8 and 16) and fairness (SDGs 3, 4, 10) but is moving away from the targets for 
some SDGs related to environmental sustainability (SDGs 6, 11, 15). 

Although there are signs of catching up, Ireland is far below the EU average on climate 
action (SDG 13) due to the high net greenhouse gas emissions per capita and persistent 
net greenhouse gas emissions from the land use and forestry sector (see Annex 1). 

social  housing  and 

levels  for  e.g.  education  and  healthcare 
services  and  construction  (see  Annex  10). 
Shortages  of 
low 
affordability  have  resulted  in  long  waiting 
lists (6)  and  an  over-reliance  on  short-term 
rent  supplement  solutions  for  around  75 000 
families 
lists. 
Homelessness  has  reached  record  levels  (see 
Annex 14). 

these  waiting 

not 

on 

housing 

is 
The  construction  sector’s  capacity 
increasing.  New 
completions 
continued  to  increase  in  2023  to  almost 
33 000 and are expected to rise further. While 
this  meets  the  targets  set  in  the  2021 
‘housing  for  all’  plan,  the real  need  for  yearly 
housing  completions  is  probably  closer  to 
than  expected 
to  higher 
50 000  due 
demographic  growth,  also  due  to  the  war  in 
Ukraine.  Raising  construction  capacity  further 
will  take  time  and  test  the  limits  of  Ireland’s 
infrastructure,  particularly  transport,  water 
supply and the energy grid. 

Disadvantaged  groups  continue  to  face 
significant 
labour  market  challenges, 
even though they are an untapped source 
of  labour.  The  disability  employment  gap 
stood at 37% in 2022, the highest in the EU (7) 
(see Social Scoreboard in Annex  14). Evidence 
also points to a high post-secondary education 
gap 
for  people  with  a  disability.  The 
employment  situation  and  poverty  risks  of 
single  parents  have  improved  in  the  last 

(6)  Housing  Agency,  2023,  Summary  of  Social  Housing 

Assessments. 

(7)  As  mentioned  in  the  Joint  Employment  Report  2024, 
the prevalence of disability based on the GALI concept 
and  the  disability  employment  gap  based  on  EU-SILC 
(2022  Pearson 
data  are  negatively  correlated, 
correlation coefficient = -0.5). 

decade.  However,  Ireland  still  has  the  highest 
proportion of single parents living in low work-
intensity  households  and  one  of  the  lowest 
shares of poor children aged less than 3 years 
in  childcare  in  the  EU.  Similarly,  the  2022 
census  confirmed  that  Roma  and  Traveller 
remain  marginalised,  with 
communities 
unemployment 
rates  of  17%  and  61% 
respectively.  

Pensions and healthcare remain 
challenges for the public finances 

risks 

remain 

Ireland’s  public  finances  are  solid,  but 
prominent. 
long-term 
Ireland’s  government  balance  saw  another 
surplus in 2023,  reaching 1.7%  of GDP  (2.9% 
of  GNI* (8)).  Short-term  fiscal  risks  are  low, 
after  several  years  of  above-expectations  tax 
revenues, which led the Government to create 
two  new  funds.  The  first,  the  Future  Ireland 
is  designed  to  future-proof  public 
Fund, 
finances.  The  second, 
Infrastructure, 
Climate  and  Nature  Fund,  will  support  capital 
investment  in  infrastructure  during  economic 
downturns  and  helps  meet  climate  and 
environmental  goals. The government balance 
continues to be skewed by windfall corporation 
tax  revenues  associated  with  multinationals. 
Gross government debt was 44.4% of GDP at 
the end of 2023, equivalent to around 76% of 
GNI*.  The tax base remains narrow, and there 
is  scope  to  expand  waste  disposal  taxes  (see 
Annex  19).  Ireland  is  also  taking  steps  to 

the 

(8)  Modified  GNI  (GNI*)  excludes  globalisation  effects  and 
reflects  the  income  standards  of  Irish  residents  more 
accurately  than  GDP.  See  Central  Statistics  Office, 
‘modified GNI’ for more detail. 

4 

 
 
 
 
safeguard the pension system against the cost 
of rising life expectancy and low fertility rates. 

The  healthcare  system  continues  to  face 
long-standing  issues.  Since  primary  care 
coverage  is  not  universal,  the  hospital  sector 
continues  to  be  under  pressure.  Healthcare 
spending exceeds budgeted amounts regularly. 

5 

 
IMPLEMENTATION OF KEY REFORMS AND 
INVESTMENTS USING EU INSTRUMENTS 

Funding from the Recovery and Resilience 
Facility  (RRF)  and  cohesion  policy  is 
mutually  reinforcing  Ireland's  efforts  to 
boost 
its  competitiveness  and  foster 
In  addition  to  the 
sustainable  growth. 
EUR 914 (9)  million  of  RRF  funding,  cohesion 
policy provides Ireland with EUR 988.6 million 
in  the  2021-2027  period.  Support  from  these 
two  instruments  combined  represents  around 
0.4% of the country’s 2023 GDP (around 0.7% 
of GNI*) compared to the EU average of 5.38% 
of GDP (see Annex 4). 

Under  its  recovery  and  resilience  plan 
(RRP),  Ireland  has  launched  important 
policy  measures  that  are  expected  to 
improve  the  country’s  competitiveness. 
Ireland has already undertaken investments in 
skills, education, retrofitting of public buildings 
and sustainable mobility. It is now investing in 
the  green  and  digital 
transformation  of 
businesses and R&D. 

The implementation of Ireland’s recovery 
and resilience plan is underway, however 
timely  completion  requires 
increased 
efforts.  Ireland  has  submitted  one  payment 
request,  corresponding  to  40  milestones  and 
targets in the plan, for which the Commission 
adopted a positive preliminary assessment on 
21  May  2024 (see  Annex  3).  Emerging  delays 
in  the  implementation  of  the  RRP  measures 
could put in jeopardy the timely and effective 
implementation  of 
timely 
the  forthcoming  payment 
submission  of 
request will be important for catching up. 

the  plan.  The 

(9)  On  22  March  2024,  Ireland  submitted  a  revised  plan, 
including  a  RepowerEU  chapter,  which 
is  under 
assessment.  The  Commission  has  given  a  positive 
assessment  on  21  May  2024.  If  this  assessment  is 
endorsed by the Council, the amount of grants available 
under the RRF would increase to EUR 1.15 billion. 

Cohesion  policy  funding  helps  reduce  the 
country’s territorial and social disparities 
and  tackling growth  and  competitiveness 
challenges.  Under  the  2014-2020  cohesion 
programming  period,  support  focused  on  the 
areas of energy efficiency, R&D and measures 
to  get  unemployed  people  into  work.  In  the 
current  2021-2027  programming  period, 
focused  on  upskilling,  social 
support 
inclusion, reducing child poverty, strengthening 
measures to get unemployed people into work, 
research and innovation, energy efficiency and 
urban development. 

is 

Promoting business 
competitiveness 

Ireland 

the  RRP, 

is 
As  part  of 
improve 
implementing  measures 
to 
businesses’  digitalisation.  At 
least  720 
companies  will  receive  support  to  develop  an 
online  presence,  digitalise  products  and 
processes  and  use  digital  technologies  to 
develop  new  markets  and  business  models. 
Four  digital  innovation  hubs,  also  with  the 
support  of  the  digital  Europe  programme,  will 
facilitate  the  digital  transformation  of  SMEs 
and  public 
sector  organisations.  These 
measures  promote  the  adoption  of  digital 
technologies  by  companies,  increasing  their 
competitiveness at home and abroad. 

The  RRF  and  cohesion  policy  funds 
support  measures  that  aim  to  reduce 
regulatory barriers for SMEs and improve 
innovation.  Through  the  RRF,  Ireland  has 
introduced an ‘SME Test’ in policymaking. This 
test  requires  government  departments  to 
assess  the  burden  of  any  new  regulation  or 
identify 
legislation  on  SMEs.  This  helps 
efficient,  alternative  policy  options  and 
ensures that SMEs do not face unnecessary or 

6 

 
 
 
disproportionate  regulatory  obstacles  when 
starting up  and growing their businesses. This 
is  complemented  by  the  European  Regional 
Development 
Fund 
strengthens regional innovation ecosystems by 
building 
created 
‘technological  universities’,  which  function  as 
regional knowledge hubs. 

capacity 

(ERDF). 

newly 

Fund 

The 

in 

Enabling high-quality education 
and research 

the 

RRP, 

Through 

Ireland  is  improving  access  to  upskilling 
and reskilling of the workforce, especially 
for  the  skills  needed  for  the  green 
transition. 
Ireland 
strengthened  the  SOLAS  ‘Skills  to  Compete’ 
programme  and  established  the  ‘Green  Skills’ 
training  programme,  aiming  to  enrol  at  least 
81 250  participants.  This  is  complemented  by 
the European Social Fund, under which almost 
320 000  participants  benefitted  from  social 
inclusion  and  skilling  measures  in  the  2014-
2020  period.  Among  them  were  over  59  000 
long-term  unemployed  who  participated  in 
labour market activation programmes. 

funding 

schools, 

literacy.  This 

The  RRP  includes  several  measures  to 
includes 
improve  digital 
introducing high-speed broadband connectivity 
in  990  primary 
ICT 
infrastructure  in  3 923  primary  and  post-
primary schools and lending laptops to around 
21 500  disadvantaged  further  and  higher 
education  students.  The  RRP  also  supports 
technological  universities  in  reforming  their 
study  programmes  and  training  staff,  with  a 
focus  also  on  digital  transformation  and 
learning for sustainability. 

R&D  programmes  help  address  the  lack 
of  public  investment  in  innovation  in  the 
Irish economy. As part of the National Grand 
Challenges  programme,  calls  for  funding  for 
research  and  innovation  projects  supporting 
the  green  and  digital  transitions  are  being 
launched.  This  is  complemented  by  the  ERDF, 
which  will  boost  research  and  innovation  in 
8 280 enterprises. 

7 

Unlocking investments for the 
green transition 

and 

Ireland 

infrastructure 
through 

Ireland  is  taking  steps  to  improve  waste 
water 
energy 
retrofitting  while 
efficiency 
is 
addressing  energy  poverty. 
improving  waste  water  infrastructure  in  its 
RRP  by  upgrading  waste  water  treatment 
plants  whose  discharges  have  been  identified 
as  putting  significant  pressure  on  receiving 
water  bodies.  Through  the  RRP,  Ireland  has 
started  retrofit  projects  for  selected  public 
sector  buildings  to  reduce  public  bodies’ 
energy consumption and related energy costs. 
The  Sustainable  Energy  Authority  of  Ireland 
pathfinder projects will enable Ireland to apply 
the  experience  and  lessons  learnt  to  similar 
retrofit  actions.  While  the  measures  included 
in  the  Irish  RRP  focus  on  increasing  energy 
efficiency  in  the  public  sector,  the  ERDF 
complements  this  by  targeting  residential 
homes, and specifically targets households in, 
or  at  risk  of,  energy  poverty.  By  2029,  the 
ERDF programmes will have supported energy 
efficiency improvements in more than 26 600 
Irish  households  since  its  commencement  in 
2014. 

The  RRP  helps  to  enable  a  greener,  more 
efficient  transport  system, 
improving 
sustainable mobility for commuters in the 
Cork area. In 2023, Ireland signed a contract 
for  delivery  of  zero-emission  rolling  stock  for 
Irish  Rail.  The  measure  will  further  modernise 
Kent Station and install a second rail track on 
the  Glounthaune  to  Midleton  line.  This  will 
increase 
the  frequency,  connectivity  and 
reliability  of  the  rail  network.  By  providing 
zero-emission  trains,  the  RRP  will  also  reduce 
pollution in the Cork area. 

The  RRF  and  cohesion  policy  funds 
support  measures  aimed  at  addressing 
the  need  for  climate  adaptation  while 
ensuring a just transition for citizens. The 
RRP  aims  to  change  land  use  from  peat 
extraction 
for 
approximately  33 000  hectares.  The  plan  will 
also  contribute  to 
increasing  biodiversity, 
support  bog  amenities  and  ecosystems  and 

sequestration 

carbon 

to 

 
the  most  suitable  reforms  and  investments 
linked 
the  REPowerEU  chapter  and 
supported many other policy areas. 

to 

flood 

risk 
improve  water  quality  and 
management.  As  part  of  the  RRP,  Ireland  has 
already  started  a  preliminary  study  on 
peatland  rehabilitation.  The  Just  Transition 
Fund  supports  Ireland’s  Midland  Region  by 
addressing  the  impact  of  transitioning  away 
from  peat  for  electricity  generation.  This 
includes financing the reskilling of workers and 
for  economic 
promoting  entrepreneurship 
reconversion.  Additionally,  the  natural  capital 
financing  facility  of  the  European  Investment 
Bank  provides  funding  for  Peatland  Finance 
Ireland. This organisation is tasked with setting 
up  and  ensuring  the  management  of  a 
national 
for  peatland 
restoration in Ireland. 

financing  system 

Improving macroeconomic stability 
and the quality of public 
institutions 

Ireland continues to reform its corporate 
tax  rules  to  make  sure  corporations  pay 
their  fair  share  of  taxes.  The  RRP  reform 
aims  to  limit  opportunities  for  aggressive  tax 
planning,  particularly  double  non-taxation  of 
interest,  royalties  and  dividends.  This  will 
create  a  fairer  environment  that  ensures  a 
local  and  foreign 
level  playing  field  for 
businesses. 

The  RRF  aims  to  strengthen  anti-money 
laundering  supervision.  One  of  the  key 
reforms  of  the  Irish  RRP  includes  increased 
inspections  of  trust  and  company  service 
providers,  a  sectoral  risk  assessment  of  such 
providers and new legislation providing further 
sanctioning  powers  to  non-financial  sector 
supervisors.  This  will  ensure  better  prevention 
of  financial  crimes  and  enhance  financial 
transparency and accountability. 

The  technical  support  instrument  (TSI) 
the  public 
strengthen 
has  helped 
administration. 
support 
the 
In  2023, 
provided  to  Ireland  focused  on  strengthening 
policy  development  and  foresight  in  public 
services  and  helping  Ireland  to  implement 
specific  reforms  and  investments  included  in 
the  RRP.  The  TSI  has  also  helped  to  identify 

8 

 
 
 
FURTHER PRIORITIES AHEAD 

faces  additional 

Ireland 
challenges 
related  to:  (i)  climate  action  and  energy; 
(ii)  environmental  sustainability; 
(iii) 
green  skills  shortages;  (iv)  social  and 
affordable  housing  supply;  (v)  pension 
cost-
sustainability; 
effectiveness; 
SME 
productivity;  and  (viii) 
labour  market 
integration  of  disadvantaged  groups. 
Tackling  these  challenges  will  help  increase 
Ireland’s 
competitiveness  and 
ensure  the  resilience  of  its  economy.  It  will 
also  help  make  further  progress  in  achieving 
the SDGs.  

(vi)  healthcare 
domestic 
(vii) 

long-term 

It  is  important  that,  where  possible,  the 
identified  challenges  are  addressed  both 
at  national  and  regional  level  to  reduce 
regional 
the 
administrative  and  investment  capacity  in  a 
balanced way across the country. 

disparities 

improve 

and 

Accelerating climate action 

to 

from 

9.2% 

1990 

Achieving  the  objectives  set  in  Ireland’s 
climate  law  and  EU  legislation  needs 
substantial  efforts.  Increased  international 
obligations  are  especially  demanding  for 
Ireland because Irish emissions have increased 
2022 (10), 
by 
notwithstanding  a  fall  between  2021  and 
2022.  This  underlines  the  need  to  accelerate 
Ireland’s  climate 
the 
policies,  which  are  currently  insufficient  to 
meet its climate obligations. Under the revised 
Effort  Sharing  Regulation,  Ireland  is  required 
reduce  emissions  by  42%  by  2030 
to 
compared to 2005 levels. In its draft national 
energy and climate plan, Ireland has indicated 

implementation  of 

(10)  Environmental  Protection  Agency,  2023,  Provisional 

1990-2022 Inventory Data. 

a projected decrease in emissions by 28.9% in 
2030 compared to a 2005 baseline. This falls 
short  of  the  2030  target  by  13.1  percentage 
points. Ireland could intensify efforts to bolster 
the  adoption  of 
renewable  energy  and 
strategies, 
climate  mitigation 
advance 
including  strengthening  energy  efficiency 
policies. 

reduction 

Curbing  emissions  from  agriculture  and 
land  use  as  well  as  the  transport  sector 
importance.  Agricultural 
is  of  utmost 
total 
for  38%  of 
emissions  accounted 
greenhouse  gas  emissions 
in  2023,  and 
for  17.7% (11).  The 
transport  accounted 
sectoral carbon budgets and the 2023 climate 
in 
action  plan  envisaged  a 
agricultural  emissions  by  25% 
in  2030 
compared  to  2018.  Although  these  emissions 
decreased  by  1.4%  between  2021  and  2022, 
they  are  still  higher  than  the  proposed 
pathway  set  out  in  the  2023  climate  action 
plan.  To  stay  within  the  first  carbon  budget 
allocation,  the  agricultural  sector  will  need  to 
reduce  emissions  by  8.3%  annually (12).  More 
is  essential  to  keep  reducing 
broadly, 
environmental  pressure 
from  agricultural 
practices including by increasing the proportion 
improving  soil 
of  organic  agriculture  and 
health.  Overall,  Ireland’s  land  use,  land-use 
change and forestry (LULUCF) sector currently 
releases  more  greenhouse  gases  than 
it 
stores. Current efforts in forestry and peatland 
rehabilitation, 
in  particular,  are  crucial  to 
improve  the  LULUCF  sector’s  contribution  to 
carbon 
the 
transport sector is also essential for Ireland to 
meet  its  the  sectoral  target  of  reducing 
in  2030 (13) 
transport  emissions  by  50% 

sequestration.  Decarbonising 

it 

(11)  According to the draft national energy and climate plan 

submitted in January 2024. 

(12)  According to the draft national energy and climate plan 

submitted in January 2024. 

(13)  OECD,  2022,  Redesigning  Ireland’s  Transport  for  Net 

Zero. 

9 

 
 
 
 
Ireland’s 

programmes, 

consumption increased by 4.5% between 2012 
and 2021, increasing 3.7% year-on-year from 
2021 to 2022. Despite comprehensive energy 
saving 
efforts, 
especially in the residential sector, fall short of 
the  trajectory  needed  to  achieve  its  2030 
reduction target. The 2024 climate action plan 
sets  out  a  range  of  measures  to  improve 
energy  efficiency  and  demand  management 
across  the  economy,  such  as 
increasing 
retrofits and the uptake of heat pumps beyond 
successful 
the 
plans  and 
implementation 
accelerated action and ambition will be crucial 
in meeting energy efficiency targets. 

initial  2023  plan.  The 
of 

existing 

Addressing skill shortages in the 
green sector 

in 

labour 

Skills  and 
shortages  have 
increased  in  the  green  sector  in  recent 
the 
creating  bottlenecks 
years, 
transition 
to  a  net-zero  economy. 
According  to  the  European  Labour  Authority, 
labour  shortages  were  reported  in  2023  for 
several occupations that required specific skills 
or  knowledge 
transition, 
including  civil  engineers,  plumbers  and  pipe 
fitters,  and  other  engineering  professionals. 
Labour  shortages  are  especially  prevalent  in 
the  construction  and  engineering  sectors (14). 
By  2030,  between  2 600  and  2 800  skilled 
workers will be  needed for the deployment of 
wind and solar energy.  

the  green 

for 

Teacher  shortages  have  become  more 
acute,  and  there  are  problems  with 
retaining  new  teachers,  who  often  work 
on  part-time  and  temporary  contracts 
research  has 
(see  Annex  15).  Recent 
highlighted  that  school  infrastructural  deficits 
and teacher supply problems are affecting the 
capacity of schools to offer diverse curricular- 
and  extra-curricular  activities (15).  Persistent 

(14)  European  Labour  Authority,  2024,  Report  on  labour 

shortages and surpluses 2023. 

(15)  Carroll, E., S. McCoy and K. Ye (forthcoming May 2024). 

Embracing Diversity in all its Forms. 

to 

1990 

Accelerating 

the 
compared 
deployment  of  electric  vehicles  and  their 
recharging infrastructure is critical. Ireland has 
only  about  2 680  publicly  accessible  charging 
points,  one  for  every  23  electric  vehicles, 
which is far fewer than the EU average of one 
for  every  10.  However,  additional  charging 
points are not likely to be enough to meet the 
transport emissions targets. There is a need in 
parallel for a rapid reduction in travel demand 
and  a  shift  to  more  sustainable  modes  of 
transport 
its 
Ireland 
decarbonisation targets and obligations. 

to  achieve 

is 

if 

in 

the 

signs 

installed 

continued 

To  reach  the  goal  of  80%  renewable 
electricity  by  2030  while  ensuring  a 
stable  energy  supply  will  require  new 
capacity,  a  more  flexible  grid  and 
interconnectivity.  The  power 
increased 
of 
show 
to 
system 
vulnerability in 2023, primarily due to the high 
dependency  on  imported  gas  and  inadequate 
capacity.  In  contrast  with  EU  trends,  retail 
energy  prices  in  Ireland  did  not  fall  in  2023, 
staying  at  more  than  twice  their  pre-energy 
Ireland  made  significant 
crisis  average. 
progress 
capacity  of 
renewables,  increasing  renewable  capacity  by 
6%  in  2023.  It  also  took  meaningful  steps  to 
implement  reforms  to  accelerate  deployment 
of offshore renewables. However, the share of 
renewable  energy  in  the  gross  final  energy 
consumption  remains  below  the  EU  average 
(13.1%  compared  to  23%  in  2022).  The 
deployment  of  wind  and  solar  photovoltaic 
systems  could  be  further  accelerated  through 
faster  permitting, 
identifying  acceleration 
areas,  introducing  fast-track  procedures  and 
simplifying  grid  connection  processes.  Other 
measures  are  needed  to  enable  the  further 
electrification  of  the  economy.  These  include 
major 
transmission, 
to 
distribution  and  storage  infrastructure  and 
flexibility  options,  such  as  demand  response 
and  behind-the-meter  mechanisms  to  absorb 
the  large  volumes  of  variable  generation  and 
avoid curtailment. 

upgrades 

the 

Energy  efficiency  is  key  to  achieving 
climate objectives, but improvements are 
lagging. Energy consumption keeps increasing 
year-on-year,  but  improved  energy  efficiency 
would  help  break  this  trend.  Primary  energy 

10 

 
 
teacher shortages may ultimately damage the 
quality of education. 

Tackling persistent shortages of 
social and affordable housing  

Improving environmental 
sustainability 

composting  and 
Ireland’s 
recycling, 
anaerobic  digestion 
levels  are  still 
insufficient (see Annex 9).  Municipal waste 
generation  in  Ireland  is  higher  than  the  EU 
average,  with  40.8%  of  it  recycled  in  2020. 
However, the country is at risk of missing the 
2025 targets for municipal waste recycling. In 
addition, the circular material use rate reached 
1.8%  in  2022  but  remains  significantly  lower 
than the EU average (11.5%). There is still an 
estimated  annual  investment  gap  of  EUR 827 
million over 2021-2027 to achieve the circular 
economy 
is 
required  in  areas  such  as  eco-design,  repair, 
in 
reuse 
infrastructure  for  separating  waste  collection 
and treatment, and recycling facilities. 

transition.  More 

remanufacturing 

investment 

and 

and 

An  ageing  infrastructure  and  decades  of 
underinvestment have adversely affected 
water  services.  Only  62.3%  of 
the 
population  was  connected 
to  secondary 
wastewater treatment in 2020. Leakage rates 
are among the highest in the EU, and drinking 
water  supply  is  a  persistent  problem  in  parts 
of  the  country.  Substantial  investment  is 
needed  to  tackle  these  shortcomings:  the 
annual  investment  gap  in  water  management 
is  expected  to  reach  EUR 910  million  over 
2021-2027 (16).  While  below  the  EU  average, 
nitrate  pollution  of  waterbodies  caused  by 
intensive agriculture has been on an increasing 
trend.  The  Irish  authorities  are  encouraged  to 
continue their current efforts to implement the 
derogation decision on nitrates and to support 
farmers  in  the  transition,  especially  the  most 
vulnerable ones. Water extraction and changes 
to  waterbodies  are  not  sufficiently  monitored 
due  to  the  absence  of  a  proper 
legal 
framework. 

(16)  European  Commission  estimates  based  on  OECD,  EIB 

and Eurostat data. 

11 

Scaling  up  construction  of  social  housing 
under  the  ‘housing  for  all’  plan  faces 
significant challenges. A total of 8 110 new 
social  housing  units  were  built  in  2023.  This 
was an increase compared to the 7 433 social 
housing  units  built  in  2022  but  below  the 
target of 9 100. This was mainly due to labour 
shortages in construction and higher input and 
financing 
costs.  Existing  social  housing 
construction schemes, often managed at local 
level,  have  faced  difficulties  scaling  up.  In 
further 
response, 
increased 
in  acquisition  and 
leasing  of  existing  housing  stock  to  use  for 
social  housing.  While  this  is  necessary  to 
reduce  the  number  of  households  at  risk  of 
homelessness  due  to  private  landlords  selling 
rental  properties,  further  increases  in  the 
government’s  role  in  homebuilding  will  be 
important, particularly when high interest rates 
hamper the viability of construction projects. 

the  government  has 
investment 

the 

units, 

These 

investments. 

Although  social  housing  remains  high  on 
the  government’s  agenda  and  record 
levels of funding have been allocated, the 
implementation  of  reforms  to  increase 
construction  capacity  will  be  crucial.  To 
increase  the  number  of  newly  built  social 
government  made 
housing 
additional 
included 
increasing  staffing  for  local  authorities  and 
doubling 
the  Land 
the  capitalisation  of 
Development Agency to unlock land not being 
developed  by  the  private  sector  and  build  on 
state  lands  (also  part  of  the  RRP).  These 
investments  were  accompanied  by  reforms 
aiming  to  speed  up  planning,  through  the 
2023  Planning  and  Development  Bill,  and 
construction through standardised designs and 
layouts  and  modern  methods  of  construction. 
While it is too early to evaluate how sufficient 
these  measures  are,  fully  implementing  them 
is critical to helping alleviate Ireland’s housing 
crisis. In addition, effective construction project 
management  in  the  context  of  scarce  labour 
resources as well as measures to train skilled 
construction  workers,  or  source  workers  from 
abroad, will be essential.  

 
 
Graph 3.1: Social housing new build 

Graph 3.2: Homelessness 

New build excludes housing units delivered through 
leasing or acquisition of existing properties. 
Source: Department of Housing, Local Government and 
Heritage (DHLGH) 

the 

pilots 

crisis 

strategy 

experience 

Disadvantaged  groups  affected  by  the 
record 
housing 
homelessness, 
including  children  and 
single  parents.  There  are  programmes  to 
provide  supported  housing  for  homeless 
people,  such  as  Housing  First,  the  youth 
homelessness 
for 
and 
families  with  complex  needs. 
homeless 
However,  since 
the 
overarching ‘housing for all’ plan in September 
2021,  child  and  family  homelessness  almost 
doubled, 
families 
particularly  affected  (see  Graph  3.2).  There  is 
scope  for more preventive action, such as the 
‘cost  rental  tenant  in  situ  scheme’,  which 
allows tenants to stay in rentals bought by the 
Housing  Agency.  As  termination  of  the  rental 
contract  is  a  prime  cause  of  homelessness, 
strengthening  tenants’  rights  will  be  key  to 
stop the increase. 

introduction  of 

single-parent 

with 

Does not include: those staying with family and friends; 
rough sleepers; homeless families temporarily 
accommodated in housing owned by their local authority; 
women and children in domestic violence shelters; 
asylum seekers in transitional accommodation 
Source: DHLGH 

The  availability  of  affordable  housing 
further  deteriorated  due  to  persistent 
supply  shortages  combined  with  higher 
than  expected  population  growth.  While 
preliminary  evidence  for  Dublin  shows  a  net 
increase in new rental stock, the availability of 
affordable  housing  remains  key  for  social 
cohesion  and  competitiveness.  To  make  more 
affordable  housing  available,  the  government 
has  started  to  build  cost-rental  homes (17). 
However,  it  will  take  several  years  until 
enough homes are built to have a measurable 
impact  on  the  rental  supply.  For  first-time 
home  buyers,  a  set  of  demand-based 
measures are in place, such as the help-to-buy 
and shared-equity  schemes. While these have 
the  potential  to  bridge  the  affordability  gap, 
close  monitoring  of  these  demand-based 
measures  will  be  crucial  so  that  they  do  not 
risk becoming a recurrent expenditure and can 
be reduced when affordability improves. 

(17)  Cost  rental  is  a  new  form  of  public  housing  in  Ireland, 
targeting  people  who  are  above  the  social  housing 
income  limits.  It  aims  to  deliver  rents  at  least  25% 
below the market level. 

12 

01,0002,0003,0004,0005,0006,0007,0008,0009,00010,00020162017201820192020202120222023New buildNew build targethousingunits05001 0001 5002 0002 50002 0004 0006 0008 00010 00012 00014 00016 000ChildrenAdultsFamilies (rhs)Single parent families (rhs) 
   
  
 
phased  transition  to  the  ‘total  contributions 
approach’  is  legislated  to  begin  in  2025. 
Recommended  by  an  independent  pensions 
commission, this approach is meant to ensure 
a  link  between  pension  benefits  and  the 
number of years people have worked and paid 
contributions. Moreover, implementation of an 
automatic  enrolment 
savings 
system  is  under  way  to  address  the  low 
proportion  of  employees  with  supplementary 
pensions, particularly in the private sector. The 
enrolment of the first participants is expected 
by  early  2025.  However,  there  are  reports  of 
widespread scepticism in the pension industry 
and  among  business 
leaders  about  this 
timeline. 

retirement 

Making healthcare more cost-
effective and accessible 

to 

related 

The  public  healthcare 
system  has 
continued  capacity  constraints  and  no 
there  are 
universal  coverage,  and 
concerns 
fiscal 
its 
sustainability.  Ireland  is  the  only  country  in 
the  EU  without  universal  primary  care 
coverage,  and  this  puts  more  pressure  on 
hospitals. 
to  extend 
In  2023,  measures 
primary  care  coverage  were  implemented.  A 
strategic  policy  project  has  been  initiated  for 
2024  and  2025  to  review  existing  eligibility 
requirements and to develop policy options for 
An 
a 
implementation  strategy  is,  therefore,  yet  to 
be  drawn  up.  Budgetary  overspends  are 
another  recurring  concern,  and  an 
inter-
savings’ 
‘productivity 
departmental 
taskforce has been announced to look at how 
to 
cost-
effectiveness  without  affecting  the  quality  or 
accessibility of care. The need for better cost-
effectiveness  is  underscored  by  the  fact  that 
population-ageing  is  expected  to  put  pressure 
on  the  healthcare  system:  this  is  projected  to 
lead  to  a  1.5  percentage  point  increase  in 
public healthcare expenditure as a percentage 

the  health  system’s 

healthcare 

universal 

improve 

plan. 

and 

Addressing the costs of ageing on 
the sustainability of the pension 
system 

and 

2022 

between 

The  impact  of  an  ageing  population  on 
the  costs  of  the  pension  system  needs 
continued  attention.  The  proportion  of  the 
population  aged  over  64  relative  to  that  of 
working age (20-64) is projected to more than 
double 
2070. 
Correspondingly,  pension  system  costs  are 
estimated to increase by 2.8 percentage points 
of  GDP  in  the  same  timeframe.  This  ranks 
Ireland among the EU Member States with the 
highest future cost of ageing (18). To deal with 
rising life expectancy and low fertility rates, an 
independent  actuarial  review,  commissioned 
by  Ireland’s  Department  of  Social  Protection, 
suggested 
related  social 
insurance  (PRSI)  rates  by  0.08  percentage 
points per year up to 2076. 

increasing  pay 

Ireland 

introduced 

Ireland  is  taking  steps  to  safeguard  the 
pension  system  although  the  chosen 
solution  may 
raise  concerns  about 
fairness between generations and require 
further action in the future. Having decided 
not  to  raise  the  pension  age,  Ireland  opted to 
tackle  the  pressures  of  an  ageing  population 
through  higher  pension  contributions.  Starting 
in  2024, 
incremental 
increases  in  the  pay  related  social  insurance 
(PRSI)  rate.  The  rate  will  increase  by  0.1 
percentage  points  from  1 October  2024  and 
further  increases  in  all  rates  (are  expected 
between  2025  and  2028.  This  is  in  line  with 
the  suggestions  in  the  independent  actuarial 
review.  However,  further  measures  might  be 
needed  as  of  2029,  as  changes  to  PRSI  rates 
will  be  reviewed  again  between  2027  and 
informed  by  an  updated  actuarial 
2028, 
review. 

Besides  the  increase  in  social  insurance 
implementing 
contributions, 
other  measures  set  out  in  the  Roadmap 
for  Pensions  2018  to  2023.  A  10-year 

Ireland 

is 

(18)  European Commission and EPC, 2024, Ageing Report. 

13 

 
 
of GDP by 2070 for Ireland compared to a 0.4 
percentage point increase for the EU (19). 

to 

included 

Action 
long-standing 
address 
challenges  in  healthcare  is  under  way 
although  it  has  shown  no  results.  Several 
measures 
in  the  RRP  have  the 
potential  to improve the cost-effectiveness of 
the healthcare system. One of these measures 
is the new consultant contract of March 2023, 
which  aims  to  contribute  to  achieving  a 
universal single-tier healthcare system. 

Realising the full potential of 
Ireland’s economy 

scale.  Total 

The  productivity  of  multinational  and 
domestic  companies  differs  significantly. 
Multinationals  maintain  significantly  higher 
levels of productivity due to frontier innovation 
factor 
and  economies  of 
productivity,  as  measured  by  multifactor 
productivity, in sectors dominated by domestic 
firms  has  fallen  short  compared  to  Ireland’s 
euro  area  counterparts (20).  Stronger 
links 
between  domestic  firms  and  multinationals 
flow, 
through 
collaborative 
labour 
initiatives  and  policies  aimed  at 
mobility 
supply-chain 
the 
integration  can  elevate 
productivity  of  domestic  firms.  More  direct 
funding  for  R&I  would  also  boost 
this 
technical 
Improving 
productivity. 
capabilities  of  SMEs  and  removing  barriers  to 
the take-up of R&D tax credit would help SMEs 
contribute  to  and  benefit  from  the  wider 
the 
economic 
resilience of the economy. 

information 
incentives, 

strengthening 

ecosystem, 

innovation 

enhanced 

the 

High business costs impede the growth of 
domestic  industry  and  SMEs.  The  issue  of 
high  legal  expenses  persists.  High  litigation 
costs,  coupled  with  delays  and  uncertainties 
brought by the legal system, contribute to the 
high  indirect  expenses  businesses  face.  High 

in 

operation,  warranting 

housing  costs  are  also  a  significant  concern. 
They  threaten  Ireland’s  attractiveness  as  a 
location  for  investment  by  raising  business 
costs  through  wage  increases  and  limiting 
labour  mobility.  The  banking  sector  is  still 
highly  concentrated,  with  only  three  retail 
banks 
close 
monitoring  over  the  level  of  competition. 
Ireland has one of the highest borrowing costs 
in  the  eurozone,  despite  a  recent  decrease  in 
the  premium  over  the  euro  area.  Lending  by 
Irish banks to SMEs has decreased by over two 
thirds  since  2012,  with  40%  of  Irish  SMEs 
debt (21).  Although 
having 
traditional  financing  for  SMEs  has  been 
reduced, this gap has been partially bridged by 
extensive  government  support,  particularly 
from  agencies  like  Enterprise  Ireland,  and  by 
non-bank 
Ireland. 
Compared to the EU average, a low proportion 
of  Irish  firms  report  financial  constraints  or 
barriers  to  investment  caused  by  the  limited 
availability of financing. 

lenders  operating 

banking 

no 

in 

People  with  a  disability,  single  parents 
and Travellers still experience difficulties 
in  finding  work  or  training  courses.  Since 
2022,  the  public  employment  services  have 
reached  out  proactively  to  clients  with  a 
disability  to  raise  awareness  of  available 
support.  There 
is  ample  evidence  of 
discrimination  in  the  workplace,  and  the  jobs 
available to people with disabilities to lift them 
out  of  poverty.  Fear  of  losing  their  disability 
benefits  frequently  prevents  people  from 
starting  a  job (22),  which  would  require  a 
potential  adjustment  to  allowances.  Evidence 
suggests  that  the  expansion  of  the  National 
Childcare  Scheme  led  to  a  substantial  and 
gradual reduction in poverty risks facing single 
parents and enabled more of them to take up 
work.  There  is  still  significant  room  to  further 
improve  access  to  childcare  for  children  living 
in  poverty,  including  those  in  single-parent 
households,  and  give  better  social  support  to 
single  parents  seeking  education  and  training. 
increased  adaptation  of 
For  Travellers, 

(19)  European Commission and EPC, 2024, Ageing Report. 

2024Q1. 

(21)  Central  Bank  of 

Ireland,  2024,  Quarterly  Bulletin 

(20)  IMF,  2023,  Boom  Without  Disease? 

Impact  of 

(22)  European Disability Forum, 2023, 7th European Human 

Multinational Enterprises in Ireland. 

Rights Report. 

14 

 
 
 
employment  schemes  for  the  needs  of  the 
Traveller  community,  administrative  capacity, 
and  a  more  rigorous  monitoring  of  the 
commitments  in  the  pathways  to  work  2021-
2025 strategy will be crucial. Integrating these 
groups  will  contribute  to  Ireland’s  growth  and 
help  the  country  reach  its  2030  national 
employment and poverty reduction targets. 

Box 3: 

The mid-term review of cohesion policy funds for Ireland 

The mid-term review of cohesion policy funds is an opportunity to assess cohesion policy 
programmes  and  tackle  emerging  needs  and  challenges  in  EU  Member  States  and  their 
regions. Member States are reviewing each programme taking into account, among other things, the 
challenges 
in  the  2024  country-specific 
recommendations. This review forms the basis for a proposal by the Member State for the definitive 
allocation of 15% of the EU funding included in each programme. 

in  the  European  Semester, 

identified 

including 

Ireland has made progress in implementing the cohesion policy programmes and the European Pillar 
of  Social  Rights,  but  challenges  remain  as  outlined  in  this  report,  including  Annexes  14  and  17.  In 
particular, Ireland continues to register major economic and social disparities between metropolitan 
areas and other areas in the country, especially in the Northern and Western Region. There are major 
weaknesses  in  getting  vulnerable  groups  into  work  or  training;  they  face  disproportionately  high 
poverty risks and social exclusion. Against this background, it is important to continue implementing 
the planned priorities, with particular attention to: (i) strengthening innovation ecosystems at regional 
level to contribute to reducing the innovation gap between the Northern and Western Region and the 
other two regions; (ii) facilitating access to social services and developing targeted skills measures, 
particularly for the most vulnerable, to address labour shortages, poverty and social exclusion. 

Ireland  could  benefit  from  the  opportunities  provided  by  the  Strategic  Technologies  for  Europe 
Platform (STEP) (23) initiative to boost investment in digitalisation and digital transformation in SMEs 
and research for clean energy technologies. This is in line with the Irish smart specialisation strategy 
and  Ireland’s  industry  4.0 strategy  2020-2025  and  the  establishment  of  future  manufacturing 
Ireland.             

(23)  Regulation (EU) 2024/795  

15 

 
 
 
 
 
KEY FINDINGS 

With  its  wide  policy  scope,  Ireland’s  recovery 
and resilience plan (RRP) includes measures to 
address  a  series  of  structural  challenges,  in 
synergy  with  other  EU  funds, 
including 
cohesion policy funds, by: 

•  Contributing  to  the  green  transition 
with  investments  in  retrofitting,  peatland 
rehabilitation,  wastewater  management 
systems  as  well  as  Improving  permitting, 
planning and grid connection procedures to 
accelerate the roll-out of renewables; 

•  Improving  macroeconomic 

stability 
and the quality of public institutions by 
tax  planning  and 
tackling  aggressive 
laundering 
strengthening 
supervision; 

anti-money 

•  Promoting 

country’s 

fiscal 
the 
improving  the  cost-
sustainability  by 
effectiveness of the healthcare system and 
ensuring  that  the  expected  increase  in 
pension  costs  is  financed  in  a  structural 
and transparent manner; 

•  Enabling  high-quality  education  and 
research  by  increasing  the  level  of  public 
R&D  investment,  reducing  the  dependence 
on  tax  credits,  and  developing  digital  skills  
and the connectivity of schools. 

•  Supporting 

disadvantaged 
communities  by  developing  skills  and 
increasing 
the  supply  of  social  and 
affordable housing;  

The implementation of Ireland’s recovery 
and  resilience  plan  is  facing  increasing 
challenges.  Renewed  efforts  are  key  for  a 
successful implementation of all the measures 
of  Ireland’s  recovery  and  resilience  plan  by 
August 2026. 

Beyond 
investments 
programmes, Ireland would benefit from: 

implementing  these  reforms  and 
the  RRP  and  cohesion 

in 

•  Further  addressing  the  healthcare 
fiscal  sustainability  and 

system’s 
equity; 

•  Boosting 

of 

productivity 

and 
competitiveness 
domestic 
businesses, in particular SMEs, by pursuing 
diversification 
to  mitigate 
strategies 
potential  risks  associated  with  adverse 
developments in the multinational sector. 

•  Fostering 

investment 

in  electricity 
networks,  flexibility  and  storage  capacity 
to  absorb  a  higher  share  of  renewable 
energy and to mitigate increasing electricity 
demand; 

•  Addressing skills shortages, especially in 

the construction and green sectors; 

•  Addressing  teacher  shortages  in  the 

school education sector;  

•  Reinforcing  efforts  to  increase  the 
supply  of  social  and  affordable 
housing; 

•  Supporting  employment  and  social 
inclusion of disadvantaged groups; 

•  Improving 

the 

LULUCF 

sector’s 

contribution to carbon sequestration. 

•  Making the waste management system 
more efficient, reducing waste production, 
increasing  reused  and  recycled  content, 
improving  waste  separation  and  achieving 
lower incineration rates;  

•  Boosting 

investment 

in  water 

infrastructure. 

16 

 
 
ANNEXES 

 
 
 
 
LIST OF ANNEXES 

Cross-cutting indicators 

A1.  Sustainable Development Goals 

A2.  Progress in the implementation of country-specific recommendations 

A3.  Recovery and resilience plan – implementation 

A4.  Other EU instruments for recovery and growth 

A5.  Resilience 

Environmental sustainability 

A6.  European Green Deal 

A7.  Energy transition and competitiveness 

A8.  Fair transition to climate neutrality 

Productivity 

A9.  Resource productivity, efficiency and circularity 

A10.  Digital transformation 

A11.  Innovation 

A12.  Industry and single market 

A13.  Public administration 

Fairness 

A14.  Employment, skills and social policy challenges in light of the European Pillar of Social Rights 

A15.  Education and training 

A16.  Health and health systems 

A17.  Economic and social performance at regional level 

Macroeconomic stability 

A18.  Key financial sector developments 

A19.  Taxation 

A20.  Table with economic and financial indicators 

A21.  Debt sustainability analysis 

LIST OF TABLES 

A2.1. 
A3.1. 

Summary table on 2019-2023 CSRs 
Key facts of the Irish RRP 

19 

21 

21 

23 

27 

29 

32 

34 

34 

39 

44 

47 

47 

49 

51 

53 

57 

59 

59 

62 

65 

67 

70 

70 

73 

76 

77 

24 
27 

 
 
 
Support from EU instruments in Ireland 
EU / euro area loans under the 2010-2018 financial assistance programmes 
Resilience indices across dimensions for Ireland and the EU-27 
Indicators tracking progress on the European Green Deal from a macroeconomic perspective 
Key Energy Indicators 
Key indicators for a fair transition in Ireland 
Circularity indicators 

A3.2.  Measures in Ireland's RRP 
A4.1. 
A4.2. 
A5.1. 
A6.1. 
A7.1. 
A8.1. 
A9.1. 
A10.1.  Key Digital Decade targets monitored by the Digital Economy and Society Index indicators 
A11.1.  Key innovation indicators 
A12.1. 
Industry and the Single Market 
A13.1.  Public administration indicators 
A14.1.  Social Scoreboard for Ireland 
A14.2.  Situation of Ireland on 2030 employment, skills and poverty reduction targets 
A15.1.  EU-level targets and other contextual indicators under the European Education Area strategic framework 
A16.1.  Key health indicators 
A17.1.  Selected indicators at regional level in Ireland 
A18.1.  Financial Soundness Indicators 
A19.1.  Taxation indicators 
A20.1.  Key economic and financial indicators 
A21.1.  Debt sustainability analysis - Ireland 
A21.2.  Heat map of fiscal sustainability risks - Ireland 

LIST OF GRAPHS 

Progress towards the SDGs in Ireland 
Ireland’s progress on the 2019-2023 CSRs (2024 European Semester) 
Distribution of cohesion policy funding across policy objectives in Ireland 
Distribution of RRF funding by pillar in Ireland 
Greenhouse gas emissions from the effort sharing sectors in Mt CO2eq, 2005-2022 
Changes in livestock density. 
Environmental investment gap, annual average 
Ireland´s energy retail prices for households and industry & service 
Trends in electricity prices for non-household consumers (EU and foreign partners) 
Ireland's installed renewable capacity (left) and electricity generation mix (right) 
Fair transition challenges in Ireland 
Job vacancy rate in transforming sectors and mining and quarrying 
ETS emissions by sector since 2013 
Treatment of municipal waste 

A1.1. 
A2.1. 
A4.1. 
A4.2. 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2. 
A7.3. 
A8.1. 
A8.2. 
A9.1. 
A9.2. 
A11.1.  Public expenditure on R&D as % of GDP and GNI* 
A12.1.  Labour productivity comparison 
A12.2.  Non-exporting SMEs (%) 
A13.1.  Government effectiveness 
A15.1.  Underachievement rates by field, PISA 2012, 2018 and 2022 
A16.1.  Life expectancy at birth, years 
A16.2.  Projected increase in public expenditure on healthcare over 2024-2070 
A17.1.  Average GDP per capita growth vs GDP per capita - Ireland 
A19.1.  Tax wedge for single and second earners as a % of total labour costs, 2023 
A19.2.  Outbound foreign direct investment (FDI) income payments from Ireland and the rest of the EU-27 relative to the size of 

their economies (in % of GDP and GNI, left) and in absolute terms (EUR billions, right), 2022 

28 
31 
31 
32 
38 
43 
45 
48 
50 
52 
56 
58 
59 
60 
63 
66 
68 
71 
73 
76 
79 
79 

21 
23 
30 
30 
34 
36 
37 
39 
39 
40 
44 
45 
47 
48 
51 
53 
55 
57 
62 
65 
66 
67 
74 

75 

20 

 
 
 
 
 
 
CROSS-CUTTING INDICATORS 
ANNEX 1: SUSTAINABLE DEVELOPMENT GOALS 

This  Annex  assesses  Ireland’s  progress  on 
the  Sustainable  Development  Goals  (SDGs) 
along  the  four  dimensions  of  competitive 
sustainability.  The  17  SDGs  and  their  related 
indicators  provide  a  policy  framework  under  the 
UN’s  2030  Agenda  for  Sustainable  Development. 
The  aim  is  to  end  all  forms  of  poverty,  fight 
inequalities  and  tackle  climate  change  and  the 
environmental crisis, while ensuring that no one is 
left  behind.  The  EU  and  its  Member  States  are 
committed  to  this  historic  global  framework 
agreement  and  to  playing  an  active  role  in 
maximising  progress  on  the  SDGs.  The  graph 
below  is  based  on  the  EU  SDG  indicator  set 
developed  to monitor progress  on  the  SDGs  in  an 
EU context. 

to 

related 

While  Ireland  is  improving  on  most  SDG 
environmental 
indicators 
sustainability,  it is moving away from  SDG 6 
(Clean  water  and 
sanitation),  SDG 11 
(Sustainable  cities  and  communities)  and 
SDG 15  (Life  on  land).  It  needs  to  catch  up 
Graph A1.1: Progress towards the SDGs in Ireland 

with  the  EU  average  in  some  areas,  in 
particular on SDG 13 (Climate action).  Ireland 
has  made  progress  on  climate  mitigation  (SDG 
13),  including  on  net  greenhouse  gas  emissions 
(from  14.8  tonnes  per  capita  in  2017  to  13.1 
tonnes  in  2022).  Nevertheless,  it  remains  above 
the  EU  average  (7.3  tonnes  per  capita  in  2022). 
Net greenhouse gas emissions from land use, land 
use  change  and  forestry  slightly  decreased  (from 
73.8  tonnes  CO2  eq.  per  km3  in  2017  to  56.9 
tonnes  in  2022)  but  remain  significantly  higher 
than  the  EU  average  (-56  tonnes  in  2022). 
Ireland’s  ambitions  in  tackling  climate  challenges 
increased  with  its  climate  action  plan,  which  was 
introduced  in  2019  and  is  updated  annually.  On 
waste  generation  and  management  (SDG 12),  the 
circular  material  use  rate  increased  marginally, 
from 1.7% in 2017 to 1.8% in 2022, but remains 
significantly lower than the EU average (11.5% in 
2022). Ireland’s material footprint increased (from 
12 tonnes per inhabitant in 2017 to 12.1 tonnes in 
2022),  below  the  EU  average  (14.9  tonnes  in 
(Sustainable  cities  and 
2022).  On  SDG 11 

For detailed datasets on the various SDGs, see the annual Eurostat report ‘Sustainable development in the European Union’; for 
details on extensive country-specific data on the short-term progress of Member States: Key findings – Sustainable development 
indicators - Eurostat (europa.eu). A high status does not mean that a country is close to reaching a specific SDG, but signals that it 
is doing better than the EU on average. The progress score is an absolute measure based on the indicator trends over the past 5 
years. The calculation does not take into account any target values as most EU policy targets are only valid for the aggregate EU 
level. Depending on data availability for each goal, not all 17 SDGs are shown for each country. 
Source: Eurostat, latest update of 25 April 2024. Data refer mainly to the period 2017-2022 or 2018-2023. Data on SDGs may 
vary across the report and its annexes due to different cut-off dates. 

21 

 
 
 
 
 
 
 
communities),  Ireland  is  moving  away  from  the 
goal due to a deterioration in the quality of life in 
both  cities  and  communities.  The  severe  housing 
deprivation  rate  increased  from  1.2%  of  the 
population in 2015 to 1.4% in 2020, although this 
is  lower  than  the  EU  average  of  4.3%.  There  is  a 
higher  percentage  of  the  population  reporting 
crime, violence or vandalism in their area (11.3%; 
compared  to  the  EU  average  of  10.7%  in  2020). 
Ireland  also  has  a  lower  percentage  of  the 
population  connected 
least  secondary 
wastewater  treatment  (SDG6;  62.3%  in  2021 
compared  to  an  EU  average  of  80.9%).  Ireland  is 
also moving away from the target for SDG 15 (Life 
on  land),  as  the  percentage  of  total  land  area 
covered by forests decreased from 22.4% in 2015 
to  19.0%  in  2018,  significantly  below  the  EU 
average at 43.5%. 

to  at 

Ireland  performs  well  on  SDG  indicators 
related to fairness (SDGs 1, 3, 4, 5, 7, 8, 10). 
The  country  performs better  than  the  EU  average 
and  is  making  progress  on  several  indicators 
related  to  inequality,  poverty,  inclusive  growth, 
health  and  well-being,  education  and  gender 
equality.  Ireland  performs  well  on  the  severe 
material and social deprivation rate (SDG 1), which 
fell from 6.9% of the population in 2017 to 5.8% 
in  2022  compared  to  the  EU  average  of  6.7%  in 
2022. However, the in-work at-risk-of-poverty rate  
increased  slightly  from  5.1%  in  2017  to  5.3%  in 
2022.  The  country  has  improved  on  several 
fairness-related  indicators  such  as  self-reported 
unmet  needs  for  medical  care  (SDG 3;  2.6%  in 
2022,  against  2.8%  in  2017)  and  early  leavers 
from education and training (SDG 4; 4.0% in 2023, 
against  5.0%  in  2018).  There  was  a  deterioration 
in the percentage of the population unable to keep 
their  homes  adequately  warm  (SDG 7;  7.2%  in 
2022,  against  4.4%  in  2017,  as  compared  to  the 
EU average of 9.3% in 2022), while the long-term 
unemployment  rate  improved  (SDG 8;  1.1%  in 
2023,  against  2.1%  in  2018).  In  addition,  the 
income share of the bottom 40% of the population 
(SDG 10)  increased  to  22.8%  of  income  in  2022 
from 21.3% in 2017.  

innovation 

16-74 lacking basic digital skills. On SDG 8 (Decent 
work  and  economic  growth),  the  percentage  of 
young  people  neither  in  employment,  education 
nor  training  aged  15-29  dropped  from  11.6%  in 
2017  to  8.5%  in  2023  and  is  below  the  EU 
average  (11.2%  in  2023).  However,  Ireland  is 
lagging behind the EU average on SDG 9 (Industry, 
innovation  and  infrastructure).  The  Irish  research 
from 
system 
and 
underinvestment,  as  shown  by  gross  domestic 
expenditure  on  R&D  (SDG 9;  0.96%  of  GDP  in 
2022  compared  to  the  EU  average  of  2.24%). 
However, when looking at modified gross national 
income 
(1.78%  of 
GNI*) (24)  was  nearer  the  EU  average  (see  Annex 
11). The Irish RRP includes significant reforms and 
investments  to  boost  innovation  and  digital  skills. 
In  particular,  the  National  Grand  Challenges 
programme 
in  green, 
climate and digital solutions.  

(GNI*),  R&D  expenditure 

incentivises 

innovation 

suffers 

Ireland  performs  well  on  SDG  indicators 
related  to  macroeconomic  stability  (SDGs 8 
and  16).  The  country  performs  well  on  SDG 8 
(Decent  work  and  economic  growth)  and  SDG 16 
(Peace, justice and strong institutions). Ireland has 
enjoyed  significant  growth  in  real  GNI*  per  capita 
(SDG 8; from EUR  41 361 in 2017 to EUR 48 660 
in 2022). Despite these improvements, Ireland still 
faces  challenges.  The  Irish  RRP  includes  several 
measures on taxation and pensions. As for access 
to  justice  (SDG 16),  Ireland  has  improved  on 
general  government  total  expenditure  on  law 
courts,  up  from  EUR  131.6  in  2017  to  EUR  157.9 
per  capita  in  2022  (EU  average  EUR  113.7  in 
2022).  

As the SDGs form an overarching framework, any 
links  to  relevant  SDGs  are  either  explained  or 
depicted with icons in the other annexes. 

is 

improving  on  some  SDGs  on 
Ireland 
productivity (SDGs 4 and 8), but still needs to 
catch  up  with  the  EU  average  for  others 
and 
(SDG 9 
infrastructure). The percentage of adults with at 
least basic digital skills (SDG 4; 72.9% in 2023) is 
above  the  EU  average  (55.5%),  although  this 
leaves  almost  one  third  of  the  population  aged 

innovation 

Industry, 

- 

(24)  GNI*  excludes  globalisation  effects  and  more  accurately 
reflects  the  income  standards  of  Irish  residents  than  GDP. 
See Central Statistics Office, Modified GNI for more details. 

22 

 
 
 
ANNEX 2: PROGRESS IN THE IMPLEMENTATION OF COUNTRY-SPECIFIC 
RECOMMENDATIONS 

Graph A2.1: Ireland’s progress on the 2019-2023 
CSRs (2024 European Semester) 

Source: European Commission. 

The Commission has assessed the 2019-2023 
country-specific  recommendations  (CSRs) (49) 
addressed to Ireland as part of the European 
Semester.  These  recommendations  concern  a 
wide  range  of  policy  areas  that  are  related  to  15 
of  the  17  Sustainable  Development  Goals  (see 
Annexes  1  and  3). The  assessment  considers  the 
policy  action  taken  by  Ireland  to  date (50)  and  the 
commitments  in  its  recovery  and  resilience  plan 
(RRP) (51).  At  this  stage  of  RRP  implementation, 
83%  of  the  CSRs  focusing  on  structural  issues 
from  2019-2023  have  recorded  at  least  ‘some 
progress’,  while  15%  recorded  ‘limited  progress’ 
(see  Graph  A2.1).  As  the  RRP  is  implemented 
further,  considerable  progress 
in  addressing 
structural CSRs is expected in the years to come. 

(49)  2023 CSRs : EUR-Lex - 32023H0901(07) - EN - EUR-Lex 

(europa.eu)  

      2022 CSRs: EUR-Lex - 32022H0901(07) - EN - EUR-Lex 

(europa.eu) 
2021 CSRs: EUR-Lex - 32021H0729(07) - EN - EUR-Lex 
(europa.eu) 
2020 CSRs: EUR-Lex - C:2020:282:TOC - EN - EUR-Lex 
(europa.eu) 
2019 CSRs: EUR-Lex - 32019H0905(07) - EN - EUR-Lex 
(europa.eu) 

(50)  Including policy action reported in the national reform 

programme and in Recovery and Resilience Facility (RRF) 
reporting (twice a year reporting on progress in implementing 
milestones and targets and resulting from the payment 
requests assessment). 

(51)  Member States were asked to effectively address in their 
RRPs all or a significant subset of the relevant country-
specific recommendations issued by the Council. The CSR 
assessment presented here considers the degree of 
implementation of the measures included in the RRP and of 
those carried out outside of the RRP at the time of 
assessment. Measures laid down in the Annex of the 
adopted Council Implementing Decision on approving the 
assessment of the RRP, which are not yet adopted or 
implemented but considered credibly announced, in line with 
the CSR assessment methodology, warrant ‘limited progress’. 
Once implemented, these measures can lead to 
‘some/substantial progress or full implementation’, 
depending on their relevance. 

23 

No progress, 2%Limited progress, 15%Some progress, 55%Substantial progress, 12%Full implementation, 16% 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table A2.1:  Summary table on 2019-2023 CSRs 

(Continued on the next page) 

24 

IrelandAssessment in May 2024*RRP coverage of CSRs until 2026Relevant SDGs2019 CSR 1Limited ProgressAchieve the medium-term budgetary objective in 2020. Use windfall gains to accelerate the reduction of the general government debt ratio.Not relevant anymoreNot applicableSDG 8, 16Limit the scope and number of tax expenditures, and broaden the tax base. Limited ProgressSDG 8, 10, 12Continue to address features of the tax system that may facilitate aggressive tax planning, and focus in particular on outbound payments.Limited ProgressRelevant RRP measures being planned as of 2020SDG 8, 16Addresstheexpectedincreaseinage-relatedexpenditurebymakingthehealthcaresystemmorecost-effectiveandbyfullyimplementingpensionreformplans.Some ProgressRelevant RRP measures being planned as of 2020, 2021SDG 3, 82019 CSR 2Some ProgressProvide personalised active integration support and facilitate upskilling, in particular for vulnerable groups and people living in households with low work intensity.Some ProgressRelevant RRP measures being planned as of 2021SDG 4, 8, 10Increase access to affordable and quality childcare.Substantial ProgressSDG 4, 52019 CSR 3Some ProgressFocus investment-related economic policy on low carbon and energy transition, the reduction of greenhouse gas emissions, Substantial ProgressRelevant RRP measures being planned as of 2020, 2021, 2022SDG 7, 9, 10, 11, 13sustainable transport,Some ProgressRelevant RRP measures being planned as of 2022SDG 10, 11water, Some ProgressRelevant RRP measures being planned as of 2021, 2022SDG 6, 10, 11, 12, 15digital infrastructure Some ProgressRelevant RRP measures being planned as of 2021, 2022, 2023SDG 9, 10, 11and affordable and social housing, taking into account regional disparities.Some ProgressRelevant RRP measures being planned as of 2021SDG 1, 2, 8, 10, 11Implement measures, including those in the Future Jobs strategy, to diversify the economy and improve the productivity of Irish firms – small and medium enterprises in particular - by using more direct funding instruments to stimulate research and innovation Some ProgressRelevant RRP measures being planned as of 2022SDG 8, 9and by reducing regulatory barriers to entrepreneurship.Some ProgressRelevant RRP measures being planned as of 2022SDG 8, 92020 CSR 1Some ProgressTakeallnecessarymeasures,inlinewiththegeneralescapeclauseoftheStabilityandGrowthPact,toeffectivelyaddresstheCOVID-19pandemic,sustaintheeconomyandsupporttheensuingrecovery.Wheneconomicconditionsallow,pursuefiscalpoliciesaimedatachievingprudentmedium-termfiscal positions and ensuring debt sustainability, while enhancing investment.Not relevant anymoreNot applicableSDG 8, 16Improveaccessibilityofthehealthsystemandstrengthenitsresilience,includingbyrespondingtothehealthworkforce’sneedsandensuringuniversalcoverage for primary care.Some ProgressRelevant RRP measures being planned as of 2021SDG 32020 CSR 2Substantial ProgressSupport employment through developing skills.Some ProgressRelevant RRP measures being planned as of 2021SDG 4Address the risk of digital divide, including in the education sector.Full ImplementationRelevant RRP measures being planned as of 2021SDG 4Increase the provision of social and affordable housing.Some ProgressRelevant RRP measures being planned as of 2021SDG 1, 2, 8, 102020 CSR 3Some ProgressContinue to provide support to companies, in particular SMEs, especially through measures ensuring their liquidity.Substantial ProgressSDG 8, 9 Front-load mature public investment projects Full ImplementationRelevant RRP measures being planned as of 2021, 2022SDG 8, 16and promote private investment to foster the economic recovery.Some ProgressRelevant RRP measures being planned as of 2021, 2022SDG 8, 9Focusinvestmentonthegreenanddigitaltransition,inparticularoncleanandefficient production and use of energy, Substantial ProgressRelevant RRP measures being planned as of 2020, 2021, 2022SDG 7, 9, 13sustainable public transport, Some ProgressRelevant RRP measures being planned as of 2022SDG 11water supply and treatment, Some ProgressRelevant RRP measures being planned as of 2021, 2022SDG 6, 12, 15research and innovation Some ProgressRelevant RRP measures being planned as of 2021SDG 9and digital infrastructure.Some ProgressRelevant RRP measures being planned as of 2021, 2022, 2023SDG 92020 CSR 4Limited ProgressBroaden the tax base.Limited ProgressSDG 8, 10, 12Stepupactiontoaddressfeaturesofthetaxsystemthatfacilitateaggressivetax planning, including on outbound payments.Limited ProgressRelevant RRP measures being planned as of 2020SDG 8, 16Ensureeffectivesupervisionandenforcementoftheanti-money-launderingframework as regards professionals providing trust and company services.Some ProgressRelevant RRP measures being planned as of 2021SDG 8, 16 
 
 
  
 
Table (continued) 

(Continued on the next page) 

25 

2021 CSR 1Not relevant anymoreIn2022,pursueasupportivefiscalstance,includingtheimpulseprovidedbytheRecovery and Resilience Facility, and preserve nationally financed investment. Not relevant anymoreNot applicableSDG 8, 16Wheneconomicconditionsallow,pursueafiscalpolicyaimedatachievingprudentmedium-termfiscalpositionsandensuringfiscalsustainabilityinthemedium term.Not relevant anymoreNot applicableSDG 8, 16Atthesametime,enhanceinvestmenttoboostgrowthpotential.Payparticularattentiontothecompositionofpublicfinances,onboththerevenueandexpendituresidesofthenationalbudget,andtothequalityofbudgetarymeasuresinordertoensureasustainableandinclusiverecovery.Prioritisesustainableandgrowth-enhancinginvestment,inparticularinvestmentsupporting the green and digital transition.Not relevant anymoreNot applicableSDG 8, 16Giveprioritytofiscalstructuralreformsthatwillhelpprovidefinancingforpublicpolicyprioritiesandcontributetothelong-termsustainabilityofpublicfinances,including,whererelevant,bystrengtheningthecoverage,adequacyandsustainability of health and social protection systems for allNot relevant anymoreNot applicableSDG 8, 162022 CSR 1Some ProgressIn2023,ensurethatthegrowthofnationallyfinancedprimarycurrentexpenditureisinlinewithanoverallneutralpolicystance,takingintoaccountcontinuedtemporaryandtargetedsupporttohouseholdsandfirmsmostvulnerabletoenergypricehikesandtopeoplefleeingUkraine.Standreadytoadjust current spending to the evolving situation.No ProgressNot applicableSDG 8, 16Expandpublicinvestmentforthegreenanddigitaltransitions,andforenergysecuritytakingintoaccounttheREPowerEUinitiative,includingbymakinguseof the Recovery and Resilience Facility and other Union funds.Full ImplementationNot applicableSDG 8, 16Fortheperiodbeyond2023,pursueafiscalpolicyaimedatachievingprudentmedium-term fiscal positions.Full ImplementationNot applicableSDG 8, 16Addresstheexpectedincreaseinage-relatedpensionexpenditurebyensuringthe fiscal sustainability of the state pension system.Some ProgressRelevant RRP measures being planned as of 2020SDG 82022 CSR 2Proceedwiththeimplementationofitsrecoveryandresilienceplan,inlinewiththemilestonesandtargetsincludedintheCouncilImplementingDecisionof8September 2021.Submitthe2021-2027cohesionpolicyprogrammingdocumentswithaviewtofinalisingtheirnegotiationswiththeCommissionandsubsequentlystartingtheirimplementation.2022 CSR 3Limited ProgressFocuseffortsonboostingthecirculareconomy.Inparticular,developbothinfrastructureandpoliciestopreventwasteandincreasereusedandrecycledcontent,anddevelopamoreeffectivesystemfortheseparatecollectionofrecyclable waste, including biodegradable waste.Limited ProgressNot applicableSDG 6, 12, 15Promote safer and cleaner waste water circuits.Limited ProgressRelevant RRP measures being planned as of 2022SDG 6, 12, 152022 CSR 4Some ProgressReduce overall reliance on fossil fuels.Some ProgressRelevant RRP measures being planned as of 2020 and 2021SDG 7, 9, 13Acceleratethedeploymentofrenewableenergy,inparticularoffshorewind,includingbyintroducingreformstoimprovetheefficiencyoftheplanningandpermit system, particularly by reducing the duration of procedures.Substantial ProgressNot applicableSDG 7, 8, 9, 13Upgradeenergyinfrastructure,includingforstorageandenhancethestabilityofthe grid.Some ProgressNot applicableSDG 7, 9, 13Ensure the fast implementation of deep building retrofits.Some ProgressRelevant RRP measure being planned as of 2021SDG 7Acceleratetheelectrificationoftransport,includingbyinstallingchargingfacilities.Some ProgressRelevant RRP measure being planned as of 2021SDG 112023 CSR 1Substantial ProgressWinddowntheemergencyenergysupportmeasuresinforce,assoonaspossiblein2023and2024.Shouldrenewedenergypriceincreasesnecessitateneworcontinuedsupportmeasures,ensurethatthesearetargetedatprotectingvulnerablehouseholdsandfirms,fiscallyaffordable,andpreserveincentives for energy savingsFull ImplementationNot applicableSDG 8, 16While maintaining a sound fiscal position in 2024,Full ImplementationNot applicableSDG 8, 16preservenationallyfinancedpublicinvestmentandensuretheeffectiveabsorptionofRRFgrantsandotherEUfunds,inparticulartofosterthegreenand digital transitions.Full ImplementationNot applicableSDG 8, 16Fortheperiodbeyond2024,continuetopursueinvestmentandreformsconducivetohighersustainablegrowthandpreserveaprudentmedium-termfiscal position.Full ImplementationNot applicableSDG 8, 16Ensurethefiscalsustainabilityofthestatepensionsystembyspecifyingitsfinancing arrangements.Some ProgressRelevant RRP measures being planned as of 2020SDG 8, 10, 122023 CSR 2Significantlyacceleratetheimplementationofitsrecoveryandresilienceplan,alsobyensuringsufficientresources,andswiftlyfinalisetheaddendumandtheREPowerEUchapterwithaviewtorapidlystartingitsimplementation.Proceedwiththespeedyimplementationofcohesionpolicyprogrammes,inclosecomplementarity and synergy with the recovery and resilience plan.RRP implementation is monitored by assessing RRP payment requests and analysing reports published twice a year on the achievement of the milestones and targets. These are to be reflected in the country reports. Progress on the cohesion policy programming documents is monitored under the EU cohesion policy.RRP implementation is monitored by assessing RRP payment requests and analysing reports published twice a year on the achievement of the milestones and targets. These are to be reflected in the country reports. Progress on the cohesion policy programming documents is monitored under the EU cohesion policy. 
 
 
  
 
Table (continued) 

Note:            
* See footnote (51). 
** RRP measures included in this table contribute to the implementation of CSRs. Nevertheless, additional measures outside the 
RRP are necessary to fully implement CSRs and address their underlying challenges. Measures indicated as 'being implemented' 
are only those included in the RRF payment requests submitted and positively assessed by the European Commission.  
Source: European Commission 

26 

2023 CSR 3Limited ProgressAccelerateinvestmentstospeedupthecirculareconomy.Furtherdevelopbothwastetreatmentinfrastructureassociatedwiththehigherstepsofthewastehierarchyandeconomicinstrumentstopreventwasteandincreasereused,remanufacturedandrecycledcontent.Developamoreeffectivesystemfortheseparatecollectionofrecyclablewaste,includingbiodegradablewaste.Divertwastefromlandfillingandincineration,withaparticularfocusonplasticandbiowaste.Limited ProgressSDG 12Increaseeffortstoaccelerateinvestmentsinthedrinkingwaterandwastewaterinfrastructure.Limited ProgressRelevant RRP measures being planned as of 2022SDG 62023 CSR 4Some ProgressReduce overall reliance on fossil fuelsSome ProgressRelevant RRP measures being planned as of 2020 and 2021SDG 7, 9, 13Focuseffortsonimprovingflexibilityintheelectricitysystemandimprovingenergysystemintegration.Designandimplementadedicatedstrategyforthedevelopmentofdemand-sideresponseandacceleratetheroll-outofsmartmetering infrastructure and smart grid technologies.Some ProgressSDG 7, 8, 9, 13Streamlinetheplanningandpermittingframeworkforrenewables,storageandgrid connectors.Substantial ProgressSDG 7, 9, 11, 13Implementadditionalmeasuresthatsupportenergyefficiencyinprivateandpublic buildings to reduce energy bills and energy system costs.Some ProgressRelevant RRP measure being planned as of 2021SDG 7, 9, 13Accelerate the installation of public charging points for zero-emission vehicles.Some ProgressRelevant RRP measure being planned as of 2021SDG 7, 9, 13Stepuppolicyeffortsaimedattheprovisionandacquisitionofskillsandcompetences needed for the green transition.Some ProgressRelevant RRP measure being planned as of 2021SDG 4 
 
 
 
  
 
ANNEX 3: RECOVERY AND RESILIENCE PLAN – IMPLEMENTATION 

This  Annex  provides  a  snapshot  of  Ireland’s 
implementation of its recovery and resilience 
plan  (RRP),  past  the  mid-way  point  of  the 
Recovery  and  Resilience  Facility’s 
(RRF) 
lifetime.  The  RRF  has  proven  central  to  the  EU’s 
recovery  from  the  COVID-19  pandemic,  helping 
speed  up  the  twin  green  and  digital  transition, 
while  adapting  to  geopolitical  and  economic 
resilience 
developments, 
against  future  shocks.  The  RRF  is  also  helping 
implement the UN Sustainable Development Goals 
and 
country-specific 
recommendations (see Annex 2).    

strengthening 

address 

and 

the 

The  RRP  paves  the  way  for  disbursing  up  to 
EUR  914  million (28)  in  grants  under  the  RRF 
over  the  2021-2026  period,  representing 
0.2%  of  Ireland’s  GDP (29).  As  of  15  May, 
Ireland  still  had  its  full  RRF  allocation  available, 
which  will  be  disbursed  after  the  assessment  of 
fulfilment  of  the  105  milestones  and  targets (30) 
included  in  the  Council  Implementing  Decision (31) 
(CID).  

Ireland’s progress in implementing its plan is 
recorded  in  the  Recovery  and  Resilience 
Scoreboard (32).  The 
scoreboard  gives  an 
overview  of  the  progress  made  in  implementing 
the RRF as a whole. Graph A3.1 shows the current 
state of play as reflected in the scoreboard.  

Ireland  has  submitted  a  REPowerEU  chapter 
to  be  added  to  its  RRP,  to  phase  out  its 
dependency on Russian fossil fuels, diversify 
its  energy  supplies  and  produce  more  clean 
energy  in  the  coming  years.  The  chapter,  once 

(28)  On  22  March  2024,  Ireland  submitted  a  revised  plan, 
including  a  REPowerEU  chapter,  which  is  under  assessment. 
The Commission has given a positive assessment on 21 May 
2024.  If  this  assessment  is  endorsed  by  the  Council,  the 
amount of grants available under the RRF would increase to 
EUR 1.15 billion. 

(29)  GDP 

information 

is  based  on  2023  data.  Source: 

https://ec.europa.eu/economy_finance/recovery-and-
resilience-scoreboard/index.html?lang=en   

(30)  A milestone or target is satisfactorily fulfilled once a Member 
State  has  provided  evidence  to  the  Commission  that  it  has 
reached  the  milestone  or  target  and  the  Commission  has 
assessed it positively in an implementing decision. 

(31)  https://data.consilium.europa.eu/doc/document/ST-11046-

2021-ADD-1/en/pdf  

(32)  https://ec.europa.eu/economy_finance/recovery-and-

resilience-scoreboard/country_overview.html 

27 

approved by the Council, will contribute to ensuring 
the  supply  of  affordable,  secure,  and  sustainable 
energy.  

Table A3.1:  Key facts of the Irish RRP 

Note: If the REPowerEU chapter is positively approved by the 
Council on 21 June 2024, the total number of milestones and 
targets  will  increase  to  118  with  five  additional  investments 
and  one  additional  reform.  The  fulfilled  milestones  and 
targets  reflect  the  positive  preliminary  assessment  by  the 
Commission on 21 May.  
Source: RRF Scoreboard. 

The  plan  has  a  strong  focus  on  the  green 
transition,  dedicating  42%  of  the  available 
funds  to  measures  that  support  climate 
objectives  and  34.2%  of  its  total  allocation 
to support the digital transition. It also retains 
a  strong  social  dimension  with  social  protection 
to  support  for 
measures,  especially 
reskilling and upskilling of workers and social and 
affordable housing.    

related 

timely 

Ireland’s 

Ireland’s  RRP 

increased  efforts. 

implementation  of 

With one payment request recently assessed, 
the 
is 
completion 
underway.  However, 
first 
requires 
payment  request  received  a  positive  preliminary 
assessment by the Commission on 21 May 2024. 
The  EFC  has  four  weeks  from  the  date  of  the 
positive  assessment  to  deliver  its  opinion.  The 
payment  to  Ireland  can  take  place  following  the 
EFC's  opinion,  and  the  adoption  of  a  payment 
decision  by  the  Commission.  The  related  40 
reforms  and 
milestones  and 
investments such as an amended carbon tax, high-
speed  connectivity  and 
infrastructure  for 
schools and investments to support upskilling and 
reskilling  of  workers.  Table  A3.2  highlights  some 
relevant  measures  that  will  be 
implemented 
before  2026  to  keep  making  Ireland’s  economy 
greener, more digital, inclusive, and resilient.   

targets  cover 

ICT 

Initial plan CID adoption date8 September 2021Scope Revised plan with REPowerEU chapter under assessmentLast major revision8 December 2023Total allocation EUR 914 million in grants (0.2% of 2023 GDP)Investments and reforms 14 investments and 10 reforms Total number of milestones and targets105Fulfilled milestones and targets40 (38% of total) 
 
 
 
  
 
 
Table A3.2:  Measures in Ireland's RRP 

Source: FENIX. 

28 

Upcoming reforms and investments• Community Health Networks• Online census response pilot• Upgrade of the Glounthaune-Midleton rail line 
 
   
 
ANNEX 4: OTHER EU INSTRUMENTS FOR RECOVERY AND GROWTH 

to 

policy 

States. 

addition 

funds (33) 

EU funding instruments provide considerable 
resources for recovery and growth to the EU 
Member 
the 
In 
EUR 914.4 million  of  Recovery  and  Resilience 
Facility  (RRF)  funding  described  in  Annex  3,  EU 
cohesion 
provide 
EUR 988.6 million  to  Ireland  for  the  2021-2027 
period (34).  Support  from  these  two  instruments 
the 
combined 
country’s  2023  GDP,  compared  to  an  EU  average 
of  5.38%  of  GDP (35).  Cohesion  policy  supports 
regional  development,  economic,  social  and 
competitiveness 
territorial 
through  long-term  investment  in  line  with  EU 
priorities and with national and regional strategies. 

represents  around  0.38%  of 

convergence  and 

During  the  2014-2020  programming  period, 
cohesion  policy  funds  boosted 
Ireland’s 
competitiveness, with  tangible achievements 
notably  in  energy  efficiency,  research  and 
development,  and  labour  market  measures. 
By  the  end  of  the  eligibility  period  in  December 
2023,  2014-2020  cohesion  policy  funds (36)  had 
made  EUR 1.2 billion  available  to  Ireland (37),  of 
which  EUR 612.1 million  has  been  disbursed  since 
March  2020,  when  the  COVID-19  pandemic 
began (38).  CRII  helped  mitigate  the  impact  of  the 
COVID-19 pandemic by supporting the purchase of 
EUR 311 million in personal protective equipment. 
REACT-EU  provided  supports  for  the  reopening  of 
schools  (EUR  77  million),  purchase  of  laptops  for 
disadvantaged  students  (EUR  11  million)  and 
following implementation of CARE and FAST-CARE, 
supports 
(EUR  53 
million).-  The  achievements  of  cohesion  policy 

for  Ukrainian 

refugees 

(33)  In  2021-2027,  cohesion  policy  funds  include  the  European 
Regional  Development  Fund,  the  European  Social  Fund  Plus 
and the Just Transition Fund. 

funds  over  the  programming  period  included  the 
improvement  of  the  energy  efficiency  of  more 
than  20 100  houses,  the  creation  of  more  than 
860  new  research  jobs,  and  the  creation  of  more 
than 1 000 jobs in businesses. In the same period, 
almost  320 000  participants  benefitted  from  the 
European  Social  Fund,  among  them  59 000  long-
term  unemployed  who  participated 
labour 
market activation programmes. 

in 

In  the  current  programming  period  (2021-
2027),  cohesion  policy will  provide a  further 
boost  to  Ireland’s  competitiveness,  to  the 
green  transition  and  to  social  cohesion, 
improving  the  living  and  working  conditions 
of Ireland’s people. In 2021-2027, the European 
Regional Development Fund (ERDF) will strengthen 
research and innovation in 8 280 businesses, most 
of them SMEs, and 6 530 residential dwellings will 
see  their  energy  performance  improved,  helping 
people  overcome  the  challenges  of  the  green 
transition. Measures funded by the Just Transition 
Fund  (JTF)  are  estimated  to  achieve  a  yearly 
of 
greenhouse 
263 314 tonnes  of  CO2  equivalent. 
Ireland’s 
European  Social  Fund  Plus  allocation  amounts  to 
over  EUR 0.5 billion.  More  than  90 000  workers 
and  unemployed  people  will  receive  support 
through  skilling,  social  inclusion,  and  activation 
measures.  Furthermore,  20 000  children  will 
benefit 
from  better  social  services,  while 
EUR 68 million  is  allocated  for  food  aid  and  basic 
material  assistance  for  those  most  in  need.  With 
this work, cohesion policy substantially contributes 
to  achieving  the  UN  Sustainable  Development 
Goals  (SDGs)  in  Ireland,  in  particular  SDG  1  (No 
poverty), 
innovation, 
infrastructure)  and  SDG  7  (Affordable  and  clean 
energy). 

emissions 

(Industry, 

reduction 

SDG 

gas 

9 

(34)  European  territorial  cooperation 

excluded  from 
investment, 
EUR 2.1 billion. 

the  figure. 
including  national 

In  2021-2027, 

(ETC)  programmes  are 
total 
to 

financing,  amounts 

the 

(35)  RRF  funding 

loans,  where 
includes  both  grants  and 
applicable. The EU average is calculated  for cohesion policy 
funds excluding ETC programmes. GDP figures are based on 
Eurostat data for 2022. 

(36)  In 2014-2020, cohesion policy funds included the European 
Regional  Development  Fund,  the  European  Social  Fund  and 
the  Youth  Employment  Initiative.  REACT-EU  allocations  are 
included but ETC programmes are excluded. 

(37)  In  2014-2020,  the  total  investment,  including  national 

financing, amounted to EUR 2.1 billion. 

(38) Cut-off date: 14 May 2024. 

Through combined action, cohesion policy and 
the recovery and resilience plan (RRP) have a 
mutually  reinforcing  impact  in  Ireland.  For 
instance, 
there  are  strong  complementarities 
between  the  RRP  and  cohesion  policy  when  it 
comes  to  retrofitting  Ireland’s  building  stock  to 
improve  energy  efficiency  and  reduce  energy 
poverty.  While  the  measures  included  in  the  Irish 
RRP  focus  on  increasing  energy  efficiency  in  the 
public  sector  by  upgrading  the  public  building 
stock, the ERDF targets residential homes in or at 
risk  of  energy  poverty.  Furthermore,  there  are 
strong  complementarities  between  the  reduction 
of  peat-dependence  for  electricity  generation  and 

29 

 
 
 
 
the  rehabilitation  of  peatlands.  RRP  measures 
support changing land use from peat extraction to 
carbon sequestration while increasing biodiversity, 
supporting  ecosystems,  and 
improving  water 
quality  and  flood  risk  management.  At  the  same 
time,  the  JTF  focuses  on  Ireland’s  Midlands  by 
facilitating  the  phase-out  of  peat  for  electricity 
generation.  This  is  being  achieved  by  supporting 
the  diversification  of  the local  economy,  restoring 
industrial 
degraded 
heritage  assets,  and  supporting  smart  and 
sustainable  transport  options.  The  contribution  of 
cohesion  policy  and  RRP  funding  by  policy 
objective is illustrated by Graphs A4.1 and A4.2. 

regenerating 

peatlands, 

Graph A4.1: Distribution of cohesion policy funding 
across policy objectives in Ireland 

Source: European Commission. 

The Technical Support Instrument (TSI) helps 
Ireland invest in its public administration and 
create a better enabling environment for EU 
and  national  investment.  The  TSI  has  funded 
projects  in  Ireland  to  design  and  implement 
reforms  since  2018.  The 
growth-enhancing 
support  provided  included  action  to  contribute  to 
the  implementation  of  the  Ireland’s  Recovery  and 
Resilience  Plan;  assistance  in  the  supervision  of 
Institutions  for  Occupational  Retirement  Provision; 
transition 
the 
development  of  offshore  renewable  energy;  and 
support in measuring citizen’s satisfaction with key 
government services. The TSI also helps Ireland to 
implement  specific 
investments 
included  in  its  RRP,  such  as  identifying  the  most 
suitable  reforms  and  investments  linked  to  the 
REPowerEU chapter.  

to  a  plan-led 

reforms  and 

regime 

for 

Graph A4.2: Distribution of RRF funding by pillar in 
Ireland 

(1) Each RRP measure helps achieve the aims of two of the 
six policy pillars of the RRF. The primary contribution is shown 
in the outer circle while the secondary contribution is shown in 
the inner circle. Each contribution represents 100% of the RRF 
funds. Therefore, the total contribution to all pillars displayed 
on this chart amounts to 200% of the RRF funds allocated to 
Ireland. 
Source: European Commission. 

Ireland  also  receives  funding  from  several 
other  EU  instruments,  including  those  listed 
in Table A4.1. For a more complete view of loans, 
see  Table  4.2  on  EU  funded  loans  along  with 
complementary  bilateral  Member  States-funded 
loans  given  to  Ireland  in  the  context  of  its  past 
financial  assistance  programme  and 
their 
outstanding amounts. 

30 

PO1 Smarter EuropePO2 Greener EuropePO4 Social EuropePO5 Europe closer to citizensPO8 JTF specific objectiveGreen transitionDigital transformationSmart, sustainable and inclusivegrowthSocial & territorial cohesionHealth & resilienceNext generation 
     
   
 
Table A4.1:  Support from EU instruments in Ireland 

(1) RRF implementation period is 2021-2026. 
(2) The public sector loan facility’s programming period is 2021-2025 and the amount reflects the national share in its grant 
component reserved until the end of the period.   
(3) Common agricultural policy programming periods are 2014-2022 and 2023-2027.   
(4) EMFF – European Maritime and Fisheries Fund, EMFAF – European Maritime, Fisheries and Aquaculture Fund. 
(5) Data on the Connecting Europe Facility covers transport and energy and has a cut-off date of 15 May 2024. 
(6) Data on Horizon Europe (2021-2027) has a cut-off date of 13 May 2024. 
(7) 2021-2027 data on the LIFE programme has a cut-off date of 15 May 2024. 
(8) The amount of the EU guarantee signed under the EFSI Infrastructure and Innovation Window was derived based on the 
signed amount of the operations and the average internal multiplier, as reported by the EIB (cut-off date is 31 December 2023). 
(9) The amount of the EU guarantee and of the volume of operations signed under InvestEU includes the EU compartment as well 
as the Member State compartments (cut-off date is 31 December 2023).   
(10) SURE - European instrument for temporary support to mitigate unemployment risks in an emergency. 
Source: European Commission. 

Table A4.2:  EU / euro area loans under the 2010-2018 financial assistance programmes 

(1) Data include upfront retained amounts (prepaid margin, service fee). The cut-off date is 15 May 2024. 
Source: European Commission. 

31 

Amount 2021-2027 (EUR million)Cohesion policy988.6RRF grants (1)914.4Public sector loan facility (grant component) (2)6.4Common agricultural policy (3)7 535.0EMFF/EMFAF (4)142.4Connecting Europe Facility (5) 39.6Horizon 2020 / Horizon Europe (6) 697.9LIFE programme (7) 74.8Brexit Adjustment Reserve1 015.2Volume of operations (EUR million)European Fund for Strategic Investment 2015-2020 (8)1 037.2InvestEU 2021-2027 (9) 349.7PeriodTotal amount available (EUR million)Disbursed amount (EUR million)SURE (10)2020-20222 473.92 473.9EU guaranteesEU grantsAmount 2014-2020 (EUR million)1 165.0--13 600.0147.6 477.71 202.7 55.6-EU Guarantee (EUR million) 407.9 88.1EU loansPeriodTotal amount disbursed (EUR billion)Outstanding amount (EUR billion)Member State bilateral loans2010-20134.80European Financial Stability Facility2010-201318.418.4European Financial Stabilisation Mechanism2011-201422.519.7EU / euro area loans under the 2010-2018 financial assistance programmes (1) 
 
 
   
 
 
   
 
ANNEX 5: RESILIENCE 

Table A5.1:  Resilience indices across dimensions for Ireland and the EU-27 

(1) The synthetic indices aggregate the relative resilience situation of countries across all considered indicators. For an indicator, 
each  country’s  relative  situation  in  the  latest  available  year  is  compared  with  the  collection  of  values  of  that  indicator  for  all 
Member States and all years in the reference period. 
Source: Resilience Dashboards - version spring 2024, data up to 2022. 

resilience 

(RDB) (39)  to  show 

This  Annex  uses  the  Commission’s  resilience 
Ireland’s 
dashboards 
relative 
and 
vulnerabilities (40)  that  may  be  of  relevance 
for  societal,  economic,  digital  and  green 
transformations, and for dealing with future 
shocks and geopolitical challenges. (41) 

capacities 

According  to  the  set  of  resilience  indicators 
in  the  RDB,  Ireland  has  medium  overall 
vulnerabilities  and  medium-high  overall 
capacities,  both  of  which  have  remained 
stable  compared  to  last  year  and  on  a  par 
with  the  EU  average.  This  is  reflected  in  the 
distribution of indicators across different resilience 
categories: about 70% of capacity indicators are in 
the  medium  to  high  category,  while  over  60%  of 
vulnerability indicators are medium to low.  

resilient  Europe 

(39)  2020  Strategic  Foresight  Report:  Charting  the  course 
(COM(2020)  493), 

towards  a  more 
Https://ec.europa.eu/info/strategy/strategic-
planning/strategic-foresight/2020-strategic-foresight-
report/resilience-dashboards_en. Resilience is defined as the 
ability  not  only  to  withstand  and  cope  with  challenges  but 
also  to  undergo  transitions,  in  a  sustainable,  fair,  and 
democratic manner.  

(40)  Vulnerabilities  describe  features  that  can  exacerbate  the 
negative  impact  of  crises  and  transitions,  or  obstacles  that 
may  hinder  the  achievement  of  long-term  strategic  goals, 
while  capacities  refer  to  enablers  or  abilities  to  cope  with 
crises and structural changes and to manage transitions. 

(41)  This  Annex  is  linked  to  Annex  1  on  SDGs,  Annex  6  on  the 
green  deal,  Annex  8  on  the  fair  transition  to  climate 
neutrality,  Annex  9  on  resource  productivity,  efficiency  and 
circularity,  Annex  10  on  the  digital  transition  and  Annex  14 
on the European pillar of social rights. 

In  the  social  and  economic  dimension, 
its 
Ireland’s  capacities  are  high,  while 
vulnerabilities  have  improved  compared  to 
the  2023  RDB,  going  from  medium  to 
medium-low.  Some  vulnerability  indicators  have 
markedly  improved,  including  a  fall  in  the  long-
term  unemployment  rate  and  in  the  number  of 
young  people  neither 
in 
education and training. 

in  employment  nor 

vulnerabilities 

In  the  green  dimension,  Ireland  continues  to 
and 
have  medium-low 
capacities. 
has 
medium-low 
higher 
respect 
raw  material 
vulnerabilities  with 
consumption 
lower 
capita 
per 
vulnerabilities in the area of fossil fuels subsidies. 
At  medium-low,  its  resilience  capacities  remain 
unchanged, below the EU average, but the number 
of  environmental  patents  per  capita  have 
increased compared to the 2023 RDB.  

It 
to 
but 

has 

in 

changes 

In  the  digital  dimension,  there  have  been  no 
significant 
Ireland’s  high 
capacities  and  medium-low  vulnerabilities 
relative to the 2023 RDB. It ranks first in the EU 
for  the  value  of  e-commerce  sales.  That  said,  it 
would do well to improve its resilience, particularly 
by  addressing  areas  where 
its  vulnerability 
indicators  are  below  the  EU  average,  such  as  the 
ICT trade deficit in services. 

Ireland’s  vulnerabilities  in  the  geopolitical 
dimension  remain  stable  overall,  while  its 
capacities have increased from medium-high 
to  high.  The  country  has  slightly  increased  the 
size  of  its  armed  forces,  but  it  still  ranks  25th  in 

32 

IEIEEU-272023 RDB2024 RDB2024 RDBHighMedium-highMediumMedium-lowLowHighMedium-highMediumMedium-lowLowDimensionDistribution of indicators by vulnerabilities and capacitiesOverall resilienceVulnerabilities0.550.580.50Capacities0.770.780.67VulnerabilitiesSocial and economicVulnerabilities0.600.690.47Capacities0.830.850.670.830.810.65GreenVulnerabilities0.760.670.44Capacities0.330.380.70CapacitiesGeopoliticalVulnerabilities0.120.110.41Capacities0.630.860.65DigitalVulnerabilities0.620.620.52Capacities0%20%40%60%80%100%Vulnerabilities(59 indicators)Capacities(61 indicators) 
 
 
 
   
 
 
the  EU.  Military  expenditure  is  also  still  relatively 
low compared to the rest of the EU. Some capacity 
indicators  have  markedly  improved,  including  an 
increase  in  the  proportion  of  non-EU  citizens  in 
total employment. 

33 

 
ENVIRONMENTAL SUSTAINABILITY 
ANNEX 6: EUROPEAN GREEN DEAL 

Ireland’s  green  transition  needs  more  action 
in several areas, for example to specify policies 
to  achieve  the  2030  effort  sharing  target  and  on 
sustainable  water  management.  This  Annex 
provides  a  snapshot  of  climate,  energy,  and 
environmental  aspects  of 
in 
Ireland (42). 

transition 

the 

Ireland’s  draft  updated  national  energy  and 
climate plan (NECP) contains only partial and 
preliminary  information  on  the  investment 
needs to achieve its 2030 climate and energy 
targets for some of the Energy Union dimensions, 
without a breakdown for each. The plan provides a 
incremental  and 
preliminary  analysis  of  the 
redirected  capital  investment  needs  for  2022-
2030.  But  it  lacks  the  total  need,  a  yearly 
breakdown and the public/private split. It provides 
some information on funding for some measures, 
but not consistently for all measures, which means 
it is not possible to identify funding gaps. The plan 
does  not 
indicate  the  contribution  from  the 
Recovery  and  Resilience  Facility  to  the  funding 
sources.  It  also  gives  unclear  information  about 
the creation of a National  Energy Efficiency  Fund. 
It  does  highlight  government  funding  for  energy 
efficiency  support  programmes  in  the  residential 
sector via the Sustainable Energy Authority (43). 

The policies and measures planned by Ireland 
to  reduce its  emissions  in the  effort sharing 
sectors  are  insufficient  to  reach  its  2030 
effort  sharing  target (44). 
Ireland’s  2022 

(42)  This Annex is complemented by Annex 7 on energy transition 
and  competitiveness,  Annex  8  on  the  fair  transition  to 
climate neutrality, Annex 9 on resource efficiency, circularity, 
and productivity, and relevant topics in the other annexes to 
this country report. 

(43)  See  European  Commission  (2023),  Assessment  of  the  draft 
updated  national  energy  and  climate  plan  of  Ireland, 
https://commission.europa.eu/publications/commission-
recommendation-assessment-swd-and-factsheet-draft-
updated-national-energy-and-climate-20_en  

(44)  The  national  greenhouse  gas  emission  reduction  target  is 
laid  down  in  Regulation  (EU)  2023/857  (the  Effort  Sharing 
Regulation).  The  aim  is  to  align  the  action  in  the  sectors 
concerned with the objective to reach the EU-level economy-
wide  target  of  greenhouse  gas  reductions  of  at  least  55% 
compared  to  1990  levels.  The  target  also  applies  to  the 
sectors  outside  the  current  EU  Emissions  Trading  System, 
notably  buildings  (heating  and  cooling),  road  transport, 
agriculture,  waste,  and  small  industry  (known  as  the  effort 
sharing sectors). 

greenhouse  gas  emissions  from  its  effort  sharing 
sectors  are  expected  to  come  in  at  3.4%  below 
2005  levels.  Current  policies  are  projected  to 
reduce Ireland’s effort sharing emissions by 10.2% 
from 2005 levels by 2030.  The additional  policies 
planned  are  projected  to  reduce  these  emissions 
by 28.9% from 2005 levels, leaving a gap of 13.1 
percentage points to Ireland’s effort sharing target 
to  achieve  a  42%  reduction (45).  Ireland  has 
enshrined  its  commitment  to  achieve  climate 
neutrality by 2050 in legislation (46). 

Graph A6.1: Greenhouse gas emissions from the 
effort sharing sectors in Mt CO2eq, 2005-2022 

Source: European Environment Agency. 

There is scope for increasing Ireland’s target 
for  renewable  energy  in  its  final  updated 
NECP (47). Ireland’s renewable energy contribution 
set out in its draft updated NECP, 31.4% by 2030, 
is significantly below the required 43%. Its energy 
efficiency  contributions  of  11.29  Mtoe  in  primary 
energy  consumption  and  10.45  Mtoe  in  final 

in  2027  after  a  comprehensive 

(45)  The  effort  sharing  emissions  for  2022  are  based  on 
inventory  data.  The  final  data  will  be 
approximated 
review. 
established 
Projections  on  the  impact  of  current  policies  (‘with  existing 
measures’,  WEM)  as  per  Ireland’s  draft  updated  NECP.  The 
plan  does  not  provide  emissions  projections  for  the  effort 
sharing  sectors  ‘with  additional  measures’  (WAM).  That 
information  is  based  on  the  latest  data  that  had  to  be 
reported  by  15  March  2023  under  Article 18  of  Regulation 
2018/1999 (the Governance Regulation). 

(46)  Climate  Action  and  Low  Carbon  Development  Act 

(amendment) of 2021. 

(47)  The  EU  target  set  out  in  the  revised  Renewable  Energy 
Directive is to have 42.5% of gross final energy consumption 
coming from by 2030, with the aspiration to reach 45%. The 
formula  in  Annex  I  to  Directive  (EU)  2023/1791  sets  the 
indicative  national  contribution  for  Ireland  at  11 230  Mtoe 
for  primary  energy  consumption  and  9 858  Mtoe  for  final 
energy consumption. 

34 

010203040506020052022MtCO2eWasteSmall industryAgricultureBuildings (under ESR)Domestic transport (excl. aviation) 
 
 
 
   
 
 
 
energy  consumption  for  2030  set  in  the  draft 
updated  NECP  are  aligned  with  the  contribution 
required under the Energy Efficiency Directive. 

Road  transport  is  by  far  the  main  form  of 
transport in Ireland and is slowly shifting to 
sustainable  forms (48).  At  1.5 %  in  2022,  the 
share  of  battery  electric  vehicles  in  Ireland’s  car 
passenger  fleet  is  above  the  EU  average  (1.2 %). 
However, 
it  has  only  about  2 680  publicly 
accessible  charging  points,  or  one  for  every  23 
vehicles,  far  fewer  than  the  EU  average  of  1:10. 
With  passenger  cars  used  for  86 %  of  distances 
travelled, Ireland is in line with the EU average. Its 
low  share  of  rail  transport,  2 %,  is  offset  by  the 
use  of  buses  and  coaches,  used  for  13 %  of 
distances  travelled.  Freight  is  transported  almost 
entirely  by  road,  with  negligible  use  of  other 
modes.  Road  congestion  puts  a  high  burden  on 
commuter  time (49).  With  only  53  km,  Ireland  has 
the lowest share of electrified railways in the EU. 

Efforts  are  underway  in  Ireland  to  step  up 
action  to  reach  the  2030  target  for  net 
carbon  removals  through  land  use,  land-use 
change and forestry (LULUCF). Specifically, it is 
working  to  safeguard  and  restore  peatlands  and 
improve soil management. Ireland’s LULUCF sector 
currently  releases  more  greenhouse  gases  than  it 
stores,  as  it  has  a  relatively  small  forested  area 
and  high  emissions  from  grasslands  on  organic 
soils.  For  reaching  the  2030  LULUCF  target,  a 
reduction  of 
the  sector’s  greenhouse  gas 
emissions by 626 kt CO2eq is yet missing (50). 

Climate  adaptation  is  fully  embedded  in 
Ireland’s  climate  policy  framework,  but  the 
measures  are  still  incremental.  Its  2023 
climate action plan identifies the most immediate 
risks  such  as  floods,  droughts  and  storms,  and 
sets out a range of adaptation-specific measures. 
A  draft  National  Adaptation  Framework  has  been 
completed  and  was  subject  to  public  consultation 
in  Q1  2024  with  a view  to  publication  by  end  Q2 
2024.  Ireland’s  Climate  Change  Advisory  Council 

(48)  Unless  otherwise  indicated,  data  in  this  section  refer  to 
2021.  See  European  Commission,  2023,  EU  transport  in 
figures, transport.ec.europa.eu. 

(49) In 2020, road vehicle drivers experienced peak-hour delays 
of 36 hours on average in Ireland (EU average: 29 hours). 

has nevertheless warned that human and financial 
resources for adaptation are inadequate and there 
is  a  lack  of  information  on  the  costs  of  and 
investment  requirements  for  adaptation.  It  also 
indicates that measures to build resilience are still 
small-scale,  reactive  and  incremental.  Ireland’s 
climate protection gap (51) is low, indicating a good 
share  of  insurance  coverage,  including  insurance 
against floods and coastal floods (52). 

Ireland  is  significantly  behind  schedule  on 
implementing  EU 
law  on  water  policy. 
IIreland’s  river  basin  status  and  water  services 
give  cause 
the  water 
for  concern.  While 
exploitation  index  plus  (WEI+)  has  remained  far 
below the threshold value indicating water scarcity 
(on average 0.7% over 2000-2020 with the worst 
seasonal water scarcity conditions only 1 % in Q4 
of  2019)Droughts  affected  on  average  0.2%  of 
land in Ireland over 2000-2020, but the high value 
of  5.3%  in  2022  suggests  the  emergence  of 
recurrent  seasonal  droughts.  46 %  of  all  surface 
water  bodies  achieved  a  good  or  high  ecological 
status,  and  only  1%  failed  to  achieve  a  good 
chemical status (against the EU averages of 31 % 
and  35 %).  Ireland  would  benefit  from  improving 
its  wastewater  treatment  and  drinking  water 
infrastructure.  Public  water-service  infrastructure 
in Ireland is older than the EU average. About 50% 
of  Ireland’s  urban  waste  waters  are  still  not 
collected  or  treated  in  compliance  with  the Urban 
Waste  Water  Treatment  Directive.  Leakage  rates 
are  some  of  the  highest  in  Europe  and  drinking 
water supplies are still  breaching the law in parts 
of the country. Ireland has yet to deliver its long-
promised  regime  for  controlling  water  abstraction 
and  regulating  hydromorphological  changes  to 
water bodies. 

Nature in Ireland is under pressure, resulting 
in biodiversity loss and habitat deterioration. 
B  Ireland  has  protected  almost  14%  of  land  and 
over 9% of its marine area as Natura 2000 sites. 
In  2022/23  Ireland  significantly  increased  the 
protection  of  its  marine  area  from  2.3%  to  9.2%. 
According to the report on the conservation status 
of  habitats  and  species  covered  by  Article 17  of 
the Habitats Directive in 2013-2018, only 15% of 
habitats  and  56%  of  species  were  in  a  good 

(51)  On the climate protection gap, see the annotations to Table 

A6.1. 

(50)  National  LULUCF  targets  of  the  Member  States  in  line  with 

(52)  Also  see  the  Commission’s  2023  recommendation  on 

Regulation (EU) 2023/839. 

Ireland’s progress on climate adaptation. 

35 

 
 
 
conservation  status4.  The  common  farmland  bird 
index  was  one  of  the  highest  in  Europe. However, 
significant challenges remain for Ireland to protect 
birds effectively in special protection areas and in 
the wider countryside. Many species are in serious 
decline  and  some  breeding  species  are  even  at 
serious  risk  of  extinction.  Urgent  action  is  needed 
to  remedy  concerns  about  breeding  waders  and 
farmland birds and to finalise work on identifying 
and  designating  marine  protected  sites.  With  less 
than  2.5%  of  Ireland’s  marine  waters  protected, 
this  is  one  of  the  poorest  records  in  the  Natura 
2000  network.  It  is  also  necessary  to  reverse 
declines  in  the  condition  of  land  sites  under  the 
Habitats  Directive.  Only  15%  of  habitats  are  in  a 
favourable condition and over half are in ongoing 
decline.  Peat  bogs  are  just  one  example  of  this 
decline. 

Food  waste  production  remains  relatively 
high  while  composting  and  digestion  levels 
could  be improved.  With  150  kg/person  of  food 
waste in 2021, Ireland was above the EU average 
of  131  kg/person.  Most  of  it  was  generated  from 
and 
household 
manufacturing  and  restaurants  and  food  service. 
Composting  and  digestion  of  municipal  waste  is 
insufficient  and  reached  70  kg/person  in  2020, 
representing 10.9% of total municipal waste. 

processing 

activities, 

farming 

There is scope to increase the share of more 
sustainable  agricultural  practices,  such  as 
organic farming. In Ireland, the annual output of 
the  agricultural  sector  fell  to  EUR 8.5  billion  in 
2023, having constantly increased since 2015 (53). 
The  rate  of  adoption  of  organic  farming  practices 
remains  rather  low.  The  share  of  land  under 
organic 
reached  2%  of  utilised 
agricultural area in 2021, against  the EU  average 
of  9.1% (54).  Under  the  2023-2027  CAP  Strategic 
Plan  Ireland  aims  to  more  than  triple  the  area  of 
agricultural  land  farmed  organically  from  2%  to 
7.5%  and  has  considerably  increased  financial 
support  to  this  end.  Additionally,  2030  target  in 
Ireland’s Climate Action Plan 2023 is 10% of land 
area to be organic. It can contribute achieving the 
EU goal of at least 25% by 2030. 

(53)  Due to e.g. higher production costs and weather conditions. 

(54)  In 2020. 

36 

Graph A6.2: Changes in livestock density. 

Livestock unit (LSU)/ha of UAA: it measures the stock of 
animals (cattle, sheep, goats, equidae, pigs, poultry and 
rabbits) converted in LSUs per hectare of UAA. 
Source: Eurostat. 

Ireland’s  livestock  farming  sector  is  moving 
to  more  intensive  practices.  While  most  EU 
Member States lowered livestock density between 
2010  and  2020,  Ireland  increased  its  livestock 
density  index  from  1.23%  in  2010  to  1.41%, 
above the EU average of 0.75%. Intensive poultry 
and  pig  farming  are  the  industrial  activities  that 
put  the  highest  burden  on  the  environment  in 
terms  of  ammonia  emissions  into  the  air.  The 
agricultural  sector  was  responsible  for  generating 
99.2 %  of  all  ammonia  emissions,  against  the  EU 
average of 90.7 %. 

Nitrates  pollution  of  water  bodies  and  soil 
degradation due to intensive agriculture is a 
matter of concern. The latest figures (2017) for 
the  gross  nitrogen  balance  on  agricultural  land  in 
Ireland  indicate  an  average  surplus  of  62.3  kg  of 
nitrogen  per  hectare  per  year,  higher  than  in  the 
previous  year.  The  nitrate  content  in  groundwater 
is  below  the  EU  average  at  13.3  versus  20.5  mg 
nitrates/l  and  1.5%  of  groundwater  monitoring 
stations  show  levels  above  the  maximum  50  mg 
nitrates/l.  The  gross  phosphorous  balance  was 
23.1  kg/ha  in  2017.  Based  on  the  best  available 
information on soil health issues at Member State 
level  used  in  the  impact  assessment  for  the  Soil 
Monitoring  Law (55),  59%  of  Irish  soil  could  be 
considered  as  in  an  unhealthy  state (56).  Nitrogen 

(55)  SWD  417  final  of  5.7.2023  -  impact  assessment  for  the 
Directive  of  the  European  Parliament  and  of  the  Council  on 
Soil  Monitoring  and  Resilience (Soil  Monitoring  Law),  (see  p. 
10, pp. 189-190 and pp. 835-845). 

(56)  However,  not  all  soil  degradation  processes  could  be 
quantified for all land uses. This number simply indicates an 
order of magnitude. 

012024681020162020% LSU per hectare% of total utilised agricultural areaLivestock density index Ireland (% LSU per ha)Livestock density index EU-27 (% LSU per ha)Organic farming Ireland (% of total utilised agricultural area)Organic farming EU-27 (% of total utilised agricultural area) 
 
       
 
excess  affects  79%  of  agricultural  land,  while 
for  agriculture. 
62%  of  peatland 
Conservation  tillage  practices,  which  increase  soil 
organic carbon, were used in 8% of tillable area in 
Ireland in 2016 (57). 

is  used 

Air  quality  in  Ireland  is  generally  good  with 
exceptions. The latest available annual estimates 
(2021)  by  the  European  Environmental  Agency 
point  to  Ireland  suffering  about  110  years  of  life 
lost for every 100,000 inhabitants due to exposure 
to particulate matter (PM2.5) and 16 due to NO2. 
smog-precursor  emission 
The 
intensity to GDP decreased by 63% between 2008 
and 2021, reaching 0.49 tonne/EUR’10 in 2021. All 
three metrics stand below the EU average. 

indicator 

for 

Graph A6.3: Environmental investment gap, annual 
average 

The numbers are computed by the European Commission 
based on the latest internal reports, Eurostat, EIB and national 
data sources. 
Source: European Commission. 

Ireland would benefit from investing more in 
sustainable  water  management,  in  pollution 
prevention  and  control,  and  in  the  circular 
economy  and  in  waste.  Over  the  2014-2020 
period,  the  environmental  investment  gap  was 
estimated  at  EUR 2.2  billion  a  year,  or  0.7%  of 
GDP (below the EU average of 0.8%).  The gap  is 
estimated  to  be  increasing  over  the  2021-2027 
period  at  EUR  3.4  billion  per  year. There  remains 
an opportunity to increase funding, in particular for 
water  management  (EUR  910  million  per  year), 
pollution  prevention  and  control  (EUR  838  million 
per  year),  and  circular  economy  and  waste  (EUR 
827  million  per  year).  The  investment  gap  for 
biodiversity and ecosystems decreased, but Ireland 
would  also  benefit  from  investing  in  biodiversity 
and ecosystems. 

(57)  Eurostat, Share of tillage practices in arable area EU27. 

37 

55813887957283891082722902004006008001,0001,2001,400Pollution prevention &controlWater managementCircular economy and wasteBiodiversity and ecosystemsmillion EUR2014-20202021-2027 
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table A6.1:  Indicators tracking progress on the European Green Deal from a macroeconomic perspective 

Sources:  (1)  Member  States’  emission  data  for  2019  and  2020  are  in  global  warming  potential  (GWP)  values  from  the  4th 
Assessment Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC). Member States’ 2005 base year emissions 
under  Regulation  (EU)  2018/842,  emissions  data  for  2021  and  2022,  and  2030  projections  are  in  GWP  values  from  the  5th 
Assessment Report (AR5) of the IPCC. 2021 data are based on the final inventory reports, 2022 data are based on approximated 
inventory reports and European Environmental Agency’s calculation of effort sharing emissions. The final data for 2021 and 2022 
will  be  established  after  a  comprehensive  review  in  2027.  The  2030  target  is  in  percentage  change  of  the  2005  base  year 
emissions. Distance to target is the gap between the 2030 target and projected effort sharing emissions with existing measures 
(WEM) and with additional measures (WAM), in percentage change from the 2005 base year emissions. The measures included 
for  the  2030  emission  projections  reflect  the  state  of  play  as  reported  in  Member  States'  draft  updated  national  energy  and 
climate plans or, if unavailable, as reported by 15 March 2023 as per Regulation 2018/1999. (2) Net removals are expressed in 
negative figures, net emissions in positive figures. Reported data are from the 2024 greenhouse gas inventory submission. 2030 
value  of  net  greenhouse  gas  removals  as  in  Regulation  (EU)  2023/839  –  Annex  IIa.  (3)  The  2030  national  objectives  for 
renewable  energy  and  energy  efficiency  are  indicative  national  contributions,  in  line  with  Regulation  (EU)  2018/1999  (the 
Governance  Regulation),  the  EU-level  2030  renewable  energy  target  set  out  in  Directive  EU/2018/2001  amended  by  Directive 
EU/2023/2413 (the revised Renewable Energy Directive) – 42.5% of gross final energy consumption with the aspiration to reach 
45% –, and the formula in Annex I to Directive (EU) 2023/1791 (the Energy Efficiency Directive). (4) Passenger battery electric 
vehicles (BEV) and fuel cell electric vehicles (FCEV). (5) The climate protection gap refers to the share of non-insured economic 
losses caused by climate-related disasters, based on modelling of the risk from floods, wildfires, windstorms, and the insurance 
penetration rate. Scale: 0 (no protection gap) –4 (very high gap) (European Insurance and Occupational Pensions Authority, 2022). 
(6) Total water consumption in renewable freshwater resources available for a territory and period. (7) Material extractions for 
consumption and investment. (8) Years of potential life lost through premature death due to exposure to particulate matter with a 
diameter  of  less  than  2.5  micrometres.  (9)  Share  of  habitats  in  good  conservation  status  according  to  the  records  submitted 
under  Art.  17  of  the  Habitats  Directive  (Directive  92/43/EEC)  for  2013-2018.  (10)  Multi-species  index  measuring  changes  in 
population abundances of farmland bird species. (11) Source: annex 12 of the Commission’s proposal for a soil monitoring law, 
SWD (2023) 417 final. (12) Estimates of organic carbon content in arable land. 

38 

Target200520192020202120222030WEMWAMProgress to climate and energy policy targetsGreenhouse gas emission reductions in effort sharing sectors (1)Mt CO2eq, %, pp47,687.6-3%-5%-2%-3%-42%32n/aNet greenhouse gas removals from LULUCF (2)Kt CO2eq6 212 4 2825 1524 6283 9833 728n/an/aShare of energy from renewable sources (1) (3)%300%12%16%12%13%0.43--Energy efficiency: primary energy consumption (3)Mtoe14.914.713.513.814.311.2Energy efficiency: final energy consumption (3)Mtoe12.612.411.211.412.010.5Projected20182019202020212022202120222030Green transition: mobility         Greenhouse gas emissions: road transportMt CO2e---11.011.6769.0786.67.2Share of zero-emission vehicles in new registrations (4)% 12.74.58.314.9912.1n/aNumber of publicly accessible AC/DC charging points --11149732244299178446956n/aShare of electrified railways%2.6%2.6%2.6%2.6%-56.1%-n/aGreen transition: buildings         Greenhouse gas emissions: buildingsMt CO2e---9.18.2537.0486.75.2Final energy consumption in buildings2015=100109.0%108.2%112.1%110.0%104.4%104.0%97.2% Climate adaptation         Climate protection gap (5)score 1-4--0.71.21.31.51.5n/a20182019202020212022202020212022State of the environmentWater | Water exploitation index (WEI+) (1) (6)% of renewable freshwater0.70.6---3.6--Circular economy | Material footprint (7)tonnes per person15.319.216.413.915.214.214.814.9Pollution | Years of life lost due to air pollution by PM2.5 (8)per 100.000 inhabitants153146117110-545584-Biodiversity | Habitats in good conservation status (9)%15.314.7                       Common farmland bird index (10)2000=100-----78--Green transition: agri-food sectorOrganic farming% of total utilised agricultural area1.651.631.662-9.1--Nitrates in groundwatermg NO3/litre4.835.035.5--20.42--Food waste per capitaKg per capita154150-130131-Share of soil in poor health (11)%5941Soil organic matter in agricultural land (12)Mt per ha428----7,904--DistanceEU-27 
 
      
 
ANNEX 7: ENERGY TRANSITION AND COMPETITIVENESS 

This  Annex (58)  sets  out  Ireland’s  progress 
and  challenges  in  accelerating  the  net-zero 
energy  transition  while  bolstering  the  EU’s 
competitiveness 
energy 
sector (59). It considers measures and targets put 
forward in the draft updated National Energy and 
Climate Plans (NECP) for 2030 (60). 

clean 

the 

in 

Unlike  the  trend  observed  in  the  EU,  retail 
energy  prices  for  household  consumers  in 
Ireland did not decline in 2023, persisting at 
record-high  levels  compared  to  pre-crisis 
averages. During  the  first  half  of  2023,  average 
household  gas  and  electricity  prices  gradually 
declined  by  5%  and  15%,  respectively,  before 
resuming an upward trend and peaking above the 
EU  average  by  11%  for  gas  and  39%  for 
electricity.  On  the  other  hand,  average  prices  for 
industrial  consumers  both  on  electricity  and  gas 
gradually decreased throughout the year. Average 
electricity  prices  however  persisted  above  the  EU 
average by 28% in the second half of 2023 while 
average  gas  prices  remained  in  line  with  the  EU 
average. 

Ireland  provides  several  direct  support 
measures  to  energy  consumers,  which  are 
partly  income  related.  A  permanent  monthly 
fuel  allowance  to  help  with  the  cost  of  heating 
homes 
to  approximately  365 000 
households  who  are  dependent  on  long-term 
social welfare or health service payments.  

is  paid 

As  of  March  2022,  and  into  2024  several 
additional lump sum payments were made to 
cushion  the  impact  of  increased  heating 
costs.  Because  of  increasing  electricity  prices, 
every household with an electricity meter received 
€800  credit on  their  electricity  accounts  between 
April  2022  and  March  2023.  Between  the  end  of 
2023  and  April  2024,  domestic  electricity 
customers  will  receive  a  further €450 off  their 
electricity bills, to be paid in 3 instalments.  

(58)  It is complemented by Annex 6 as the European Green Deal 
focuses on the clean energy transition and by Annex 8 on the 
action  taken  to  protect  the  most  vulnerable  groups, 
complementing  ongoing  efforts  under  the  European  Green 
Deal, REPowerEU and European Green Deal Industrial Plan. 

(59)  In line with the Green Deal Industrial Plan and the Net-Zero 

Industry Act. 

(60)  Ireland submitted its draft updated NECP in December 2023. 

39 

Graph A7.1: Ireland´s energy retail prices for 
households and industry & service 

an 

insight 

(1) For industry, consumption bands are I3 for gas and IC for 
electricity,  which  refer  to  medium-sized  consumers  and 
provide 
affordability 
(2)  For  households,  the  consumption  bands  are  D2  for  gas 
electricity 
and 
(3)  Industry  prices  are  shown  without  VAT  and  other 
recoverable  taxes/levies/fees  as  non-household  consumers 
are usually able to recover VAT and some other taxes 
Source: Eurostat. 

into 

for 

DC 

Graph A7.2: Trends in electricity prices for non-
household consumers (EU and foreign partners) 

to 

(1) For Eurostat data (EU and IE), the band consumption is ID 
referring 
large-sized  consumers  with  an  annual 
consumption of between 2 000 MWh and 20 000 MWh, such 
as in electricity intensive manufacturing sectors, and gives an 
competitiveness. 
international 
insight 
(2) JP = Japan 
Source: Eurostat, IEA. 

into 

consumers 

In  relative  terms,  electricity  prices  for  non-
household 
increased 
significantly  compared  to  the  US  and  Japan, 
thus  potentially  affecting 
international 
competitiveness  of  energy-intensive  industries  in 
Ireland. 

have 

the 

0.000.050.100.150.200.250.300.350.40€/KWhGas (industry & service) - IEGas (industry & service) - EUGas (households) - IEGas (households) - EUElectricity (industry & service) - IEElectricity (industry & service) - EUElectricity (households) - IEElectricity (households) - EU050100150200250Index ( 2018 S2 = 100)JPUKUSIEEU 
 
 
   
 
  
 
 
Ireland  has  a  relatively  high  dependency  on 
imported  gas  from  the  UK,  which  has  a  key 
role  in  Ireland’s  energy  system,  providing 
almost  30%  of  energy  needs.  Ireland’s  power 
to  a 
is  under  severe  stress  due 
system 
combination  of  systemic  and  unplanned  factors. 
The  regulator  warned  of  significant  risks  of 
capacity inadequacy for the coming years.  

Ireland  also  converted  its  last  peat-fired  power 
plant to the use of biomass in 2023. 

Graph A7.3: Ireland's installed renewable capacity 
(left) and electricity generation mix (right) 

to  be 

security 

is  very 

sensitive 

Energy 
to 
disruptions  in  the  supply  of  gas  to  Ireland 
from  the  UK  and  Norway.  The  ‘Energy  Security 
Ireland  to  2030’  report  emphasised  that 
in 
Ireland’s future energy supply will be more secure 
by  moving  to  an  electricity-led  system.  The  main 
long-term  security  of  supply  measure 
for 
the  Capacity 
electricity  will  continue 
Mechanism,  which  will 
sufficient 
investment  in  generation  and  demand  response 
resources  to  ensure  security  of  supply.  Measures 
to mitigate potential supply risks include additional 
import  capacity,  reducing  energy  use,  energy 
storage,  additional  electricity  interconnection,  fuel 
diversification  and  renewable  gases  (such  as 
biomethane  and  hydrogen),  and  moving  away 
from  burning  peat  for  heat. Ireland  managed  to 
reduce  its  gas  demand  between  August  2022  - 
December  2023  by  5%  in  comparison  with  the 
average of the previous five years. 

secure 

Renewable  installed  capacity  increased  by 
6% in 2022, mainly driven by an increase in 
onshore  wind.  The  total (61)  in  Ireland  for  2022 
was  4 619  MW,  of  which  25  MW  was  offshore 
wind.  Ireland  has  ambitious  plans  to  reach  more 
than 10 GW of installed wind capacity by 2030, of 
which more than 5 GW offshore.  This goal aligns 
with Ireland’s non-binding agreement laid down by 
the  non-binding  goals  in the  2023  EU  Sea  Basins 
agreements.  

As  regards  solar  deployment,  the  total 
installed  capacity  in  2022  was  135  MW (62) 
but industry estimates expected a significant 
acceleration  with  about  1 00O  MW  to  be 
connected  to  the  grid  by  the  end  of  2023.  

(1) "Other" includes renewable municipal waste, solid biofuels, 
liquid biofuels, and biogas. 
Source: IRENA, Ember. 

steps 

significant 

Ireland  made 
in 
implementing  reforms  to  accelerate  the 
deployment  of  offshore  renewables  but  the 
timeline  for  delivery  on  targets  is  tight.  It 
started  implementing  the  transition  to  a  plan-led 
regime  for  offshore  renewables  in  2023  and 
established 
the  Maritime  Area  Regulatory 
Authority to manage maritime area consents.  

they 

related 

resulted 

in  2023,  although 

The first offshore auction under the Offshore 
Renewable 
Electricity  Support  Scheme 
(ORESS)  delivered  high  volumes  of  wind 
capacity  and  marked  a  promising  start  for 
the  sector.  As  regards  onshore  renewables,  the 
Renewable  Electricity  Support  Scheme 
(RESS) 
remains  the  primary  vehicle,  with  two  auctions 
held 
in 
disappointing  volumes  of  wind  capacity.  This  is 
mainly 
to  planning  and  permitting 
bottlenecks,  considering  also  that  Ireland  has  still 
not designated all Natura sites for marine habitats 
and  species.  The  publication  of  a  schedule  of 
auctions for the next 3 years will provide visibility 
for  the  pipeline  of  onshore  and  offshore  projects. 
The acceleration of solar PV, and the promotion of 
distributed  renewables  and  community  projects 
has  been  a  success  and  a  new  support  scheme 
also  started  to  provide  support  to  small,  non-
domestic solar PV installations, complementing the 
successful microgeneration support scheme.  

(61)  IRENA Report 2023. 

(62)  IRENA  report  Renewable  Energy  Statistics  2023,  the  data 
might  differ  from  the  Eurostat  data  because  of  using 
different  methodology in  calculating  the  capacity in  AC  and 
DC. 

is 

Ireland’s  grid 
the  process  of 
in 
modernisation. New capacity, a more flexible 
grid  and  increased  interconnectivity  will  be 
critical  to  ensuring  security  of  supply  and 
meeting its 80% renewable electricity target 

40 

 
 
 
by  2030.  Completing  the  Ireland-France  Celtic 
Interconnector  Project  of  Common  Interest  will 
restore  Ireland’s  connection  to  the  EU  post-UK 
withdrawal,  strengthening  security  of  supply  and 
renewable  integration.  New  projects  are  also 
ongoing to strengthen interconnection with the UK, 
including Northern Ireland. 

Ireland's efforts in the residential sector still 
fall  short  of  the  trajectory  to  its  2030 
reduction  target  for  energy  consumption  by 
buildings.  The  final  energy  consumption  of  the 
residential  sector  in  Ireland  decreased  in  2022 
compared  to  2021  but  has  increased  by  7.4% 
since 2015 (63).  

Consumer  empowerment  in  the  electricity 
and  gas  markets  is  significant,  but  the 
deployment  of  smart  meters  is  still  lagging. 
The  number  of  electricity  suppliers  remained 
relatively  stable,  with  2  suppliers  leaving  the 
market  due  to  financial  difficulties  in  2022.  No 
data are available for 2022 but in 2021, both for 
electricity  and  gas,  nearly  100%  of  all  contracts 
had fixed prices.  

Switching  rates  in  both  electricity  and  gas 
are  gradually  increasing  and  were  at  just 
in  2022.  The  National  Smart 
below  20% 
Metering  programme  will  make  smart  meters 
available  for  every  home  by  the  end  of  2024.  In 
2022  56%  of  households  had  a  smart  meter  (EU 
average  is  80%).   In  its  draft  updated  NECP, 
Ireland  expressed  its  intention  to  increase  the 
number  of  sustainable  energy  communities  to 
1 500 by 2030. 

Overall energy consumption keeps increasing 
year  on  year  and  there  is  a  significant 
untapped  potential  in  energy  efficiency.  In 
2022,  Ireland  had  a  primary  energy  consumption 
of 14.3 Mtoe, a 3.7% increase compared to 2021, 
and  a  4.5%  increase  compared  to  2012.  It  had 
final  energy  consumption  of  12.0  Mtoe,  a  4.7% 
increase  compared  to  2021  and  an  11.4% 
increase  compared  to  2012.  In  2022,  the  largest 
increase  was  from  the  transport  sector,  which 
increased its final energy consumption by 20.1%. 

Most  of  the  expected  savings  correspond  to 
longstanding measures but further measures 
need  to  be  defined  and  budgeted.    Ireland 
intends  to  develop  a  smart  financing  initiative, 
including  energy  performance  contracting  for  the 
public  sector.  Ireland  organised  a  comprehensive 
energy  savings  programme  for  the  public  sector, 
with  a  strong  focus  on  renovation  of  public 
buildings.  Ireland’s  sustainable  energy  authority 
has  a  dedicated  Behavioural  Economics  Unit 
engaging with consumers on energy efficiency.  

final 

residential 

The  share  of  renewables  in  heating  and 
cooling  remains  very  low  (6.3%  in  2022).  
Heating and cooling represent almost 80% of 
Ireland’s 
energy 
consumption.    Ireland  has  announced  a  ban  on 
gas  boilers  in  new  buildings  by  2025  (there  are 
approximately  400 000 
individual  gas  boilers 
installed  in  the  country).  Approximately  20 000 
heat  pumps  were  sold  in  2022,  an  increase  of 
140% compared to 2020, reaching a total stock of 
around  85 000 
in  the 
residential sector (64). The Climate Action Plan and 
National  Retrofit  Plan  published  in  2021  set 
ambitious  targets  to  retrofit  the  equivalent  of 
500,000 homes to a Building Energy Rating (BER) 
of B2/cost optimal and the installation of 400,000 
heat  pumps  in  existing  homes  to  replace  older, 
less  efficient  heating  systems  by  end-2030.  In 
February  2022  the  Government  announced  a 
package  of  supports  to  make  it  easier  and  more 
affordable  for  homeowners  to  undertake  home 
energy upgrades, including increased grants. 

installed  heat  pumps 

The  Irish  recovery  and  resilience  plan  (RRP) 
includes  €115  million  for  energy  efficient 
residential  and  public  buildings.  Following  the 
2022  National  Heat  Study,  new  measures, 
including an expansion of the Support Scheme for 
Renewable  Heat  (SSRH),  the  introduction  of  a 
Renewable Heat Obligation and new standards for 
solid  fuel  heaters  will  complement  the  current 
SSRH  and  the  grants  for  heat  pumps  under  the 
retrofit  schemes;  however,  it  is  not  clear  whether 
these new measures are already aligned with the 
ambitious objectives of the Climate Action Plan.  

Ireland is carrying out a very low number of 
checks  on  products  covered  by  eco-design 

(63)  Final energy consumption in households from Eurostat (data-
tables  of  December  2023),  climate-corrected  by  the  Joint 
Research  Centre  with  reference  period  2005-2022  (FEC 
climate corrected = FEC/ (HDD/HDD reference period). 

(64)  See  “Heat  Pump  Market:  Country  Fiches”,  available  at 
https://publications.jrc.ec.europa.eu/repository/handle/JRC137
131  

41 

 
 
investment 

Public 
in  energy-related  R&I 
decreased  from  0.022%  of  GNI*  in  2014  to 
0.005% in  2021.  To  reverse  this trend,  Ireland’s 
Sustainable Energy Authority has begun publishing 
yearly  calls  to  fund  innovative  energy  research 
development  and  demonstration  projects.  The 
main  financing  instrument  supporting  energy  R&I 
is the SEAI National Energy Research Development 
& Demonstration (RD&D) Funding Programme. 

and  energy  labelling.  This  generates  serious 
concerns  with  respect  to  the  level  playing  field 
among  economic  operators  and  uncertainty  as  to 
compliance levels. 

More  than  half  of  Irish  households  get  their 
electricity  and  gas  from  the  supplier  of  last 
resort.  14.5%  of  consumers  have  a 
prepayment  electricity  meter,  which  allows 
for 
electricity 
control 
consumption.  Both  rates  are  the  highest  among 
EU  countries.  Disconnection  rates  due  to  non-
payment of gas and electricity bills are among the 
lowest in Europe.  

better 

of 

a 

Ireland  plans  to  have  2  GW  of  renewable 
hydrogen in development by 2030, as set out 
in  its  National  Hydrogen  Strategy,  published 
in  July  2023.  While  renewable  hydrogen  in 
Ireland will help decarbonise hard-to-abate sectors 
and  reinforce  energy  security  in  Ireland,  the 
expected 
low  domestic  demand 
underscores the need for suitable infrastructure to 
facilitate  exports  to  consumption  centres  across 
Europe. Network plans still to be developed. 

relatively 

units 

Ireland has historically relied on imports for 
clean technologies. However, there are a few 
small-scale  manufacturing 
for 
batteries  and  positive  developments  in  R&D 
initiatives, especially for offshore wind. In the 
in 
wind  supply  chain, 
components 
testing  and  grid  management 
software.  Also,  Dublin  hosts  a  growing  company 
focused on developing a modular floating offshore 
wind  platform,  with  promising  applications  for 
deep-water deployment.  

involved 

Ireland 

is 

Currently,  manufacturing  capacity  in  Ireland 
is  confined  to  domestic-scale  wind  turbines, 
managed  by  an  Irish  company  based  in 
Galway. On energy storage, there are two small-
scale  lithium-ion  battery  producers  operating  in 
Tipperary and Galway,  one of which specialises in 
the  electrification  of  off-highway  electric  vehicles 
such as construction dozers and mining trucks.  

For  solar  PV,  a  new  Irish-Indian  company 
unveiled  plans  to  start  Ireland’s  first  solar 
module manufacturing plant in the Midlands. 
The  EUR  24m  plant  will  have  a  maximum  rated 
output of 300 MW when fully operational.  

42 

 
Table A7.1:  Key Energy Indicators 

(1) The ranking of the main suppliers is based on the latest available figures (for 2022). 
(2) Venture Capital investment includes Venture Capital deals (all stages), Small M&A deals and Private Equity (PE) growth deals 
(for companies that have previously been part of the portfolio of a VC investment firm or have received Angel or Seed funding). 
Source:  Eurostat,  Gas  Infrastructure  Europe,  JRC  elaboration  based  on  PitchBook  data  (03/2024),  JRC  SETIS  (2024). 
(3)  Interconnection  from  Ireland  to  GB  currently  stands  at  500MW  -  ROI  &  N.I.  stands  at  1000MW  through  the  East  West  and 
Moyle interconnectors respectively. 

43 

20192020202120222019202020212022Import Dependency [%] 68.7%71.1%77.0%79.2%60.5%57.5%55.5%62.5%of Solid fossil fuels 67.9%55.9%106.0%126.5%43.3%35.8%37.3%45.8%of Oil and petroleum products 99.0%103.2%98.4%100.6%96.7%96.8%91.7%97.7%of Natural Gas 53.0%63.7%71.1%73.9%89.7%83.6%83.6%97.6%Dependency from Russian Fossil Fuels [%]of Natural Gas 0.0%0.0%0.0%0.0%39.7%41.3%41.1%21.0%of Crude Oil0.0%0.0%0.0%0.0%28.8%26.7%26.4%19.5%of Hard Coal6.5%23.6%80.7%35.8%43.5%49.1%47.4%21.5%2016201720182019202020212022Gas Consumption (in bcm)5.1                   5.3                   5.5                   5.5                 5.6                 5.2                 5.3                 Gas Consumption year-on-year change [%]17.4%2.5%3.9%1.5%0.3%-6.2%1.5%Gas Imports - by type (in bcm)2.0                   1.7                   2.0                   2.9                 3.4                 3.7                 3.8                 Gas imports - pipeline2.0                   1.7                   2.0                   2.9                 3.4                 3.7                 3.8                 Gas imports - LNG0.00.00.00.00.00.0-                 Gas Imports - by main source supplier (in bcm) (1)United Kingdom2.0                   1.7                   2.0                   2.9                 3.4                 3.7                 3.8                 20192020202120222023LNG Terminals - storage capacity m3 LNGNumber of LNG Terminals00000LNG Storage capacity (m3 LNG)00000Underground StorageNumber of storage facilities00000Technical Capacity (bcm)0.00.00.00.00.020162017201820192020202120222023Gross Electricity Production (GWh) (2)30,512            30,874            31,135            30,956          32,267          31,862          33,856          -              Combustible Fuels23,387         22,525         21,546         19,771       19,440       20,968       21,551       -              Nuclear0000000-              Hydro973              895              932              1,132         1,224         1,036         948             -              Wind6,147           7,444           8,640           10,019       11,549       9,778         11,208       -              Solar5                   10                 18                 33               53               79               148             Geothermal0000000-              Other Sources0-                   0-                   0-                   0                 0                 0-                 0-                 -              Gross Electricity Production [%]Combustible Fuels76.6%73.0%69.2%63.9%60.2%65.8%63.7%-              Nuclear0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Hydro3.2%2.9%3.0%3.7%3.8%3.3%2.8%-              Wind20.1%24.1%27.7%32.4%35.8%30.7%33.1%-              Solar0.0%0.0%0.1%0.1%0.2%0.2%0.4%-              Geothermal0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Other Sources0.0%0.0%0.0%0.0%0.0%0.0%0.0%-              Net Imports of Electricity (GWh)712-                  679-                  28-                    645                152-                1,588             252                -              As a % of electricity available for final consumption -2.7%-2.5%-0.1%2.3%-0.5%5.4%0.8%-              Electricity Interconnection [%]7.4%7.1%6.3%6.6%0.0%0.0%0.0%Share of renewable energy consumption - by sector [%]Electricity27.1%30.3%33.3%36.5%39.1%36.4%36.8%-              Heating/cooling6.2%6.6%6.4%6.3%6.3%4.9%6.3%-              Transport5.2%7.4%7.2%8.9%10.2%4.4%5.5%-              Overall9.2%10.5%10.9%12.0%16.2%12.4%13.1%-                 20192020202120222023VC investments in climate tech start-ups and scale-ups (EUR Mln)12.41           21.55           72.20           256.88          42.32             as a % of total VC investment (3) in Ireland start-ups and scale-ups2.2%1.7%4.2%15.5%2.5%Research & Innovation spending in Energy Union R&i prioritesPublic R&I (EUR mln)25.5             21.8             23.3             -              -              Public R&I (% GDP)0.007%0.006%0.005%-              -              Private R&I (EUR mln)135.1           106.0           -               -              -              Private R&I (% GDP)0.038%0.028%-                   -                 -                 ELECTRICITY/ENERGYCLEAN ENERGYDIVERSIFICATION OF GAS SUPPLIESIrelandEUENERGY DEPENDNCE 
 
   
 
ANNEX 8: FAIR TRANSITION TO CLIMATE NEUTRALITY 

Ireland’s 

situations. 

(GHG)  emission 

This  Annex  monitors  Ireland’s  progress  in 
ensuring  a  fair  transition  towards  climate 
neutrality  and  environmental  sustainability, 
particularly  for  workers  and  households  in 
green 
vulnerable 
economy  is  expanding.  Between  2015  and 
2021,  total  jobs  in  the  environmental  goods  and 
services sector grew by 65.6% (to around 40 000) 
(EU: 18.2%). However, the sector accounts for only 
1.7%  of  total  employment,  below  the  EU  average 
(2.7%).  Also  between  2015  and  2022,  the 
greenhouse  gas 
intensity  of 
Ireland’s  workforce  (see  Graph  A8.1  and  Table 
A8.1)  fell  from  28.4  to  24.4  tonnes  per  worker, 
indicating  a  positive  trend  in  the  green  transition, 
even though it is still above the EU average (14.3 
tonnes per worker in 2022). In line with the Council 
Recommendation  of  2022  on  ensuring  a  fair 
transition towards climate neutrality (65), upskilling 
and reskilling measures, particularly in regions that 
traditionally  relied  heavily  on  declining  industries, 
are essential for smooth labour market transitions. 
Ireland’s 
(RRP) 
outlines crucial reforms and investments for a fair 
green  transition (66),  complementing  the  territorial 
just  transition  plan  and  actions  supported  by  the 
European Social Fund Plus (ESF+). Ireland is set to 
receive  up  to  EUR  84.5  million  from  the  Just 
Transition  Fund  (JTF)  until  2027.  Along  with 
national  co-financing,  a  total  of  EUR  169  million 
will  help  communities  in  the  Midlands  Region 
phase out climate-polluting activities (67). 

resilience  plan 

recovery  and 

Employment 
in  sectors  that  are  most 
affected  by  the  green  transition  slightly 
decreased.  In  2023,  employment  in  Ireland’s 
energy-intensive industries (68)  comprised  0.9%  of 
total  employment  (1.2%  in  2015),  well  below  the 
EU  average  (3.5%).  Employment  in  mining  and 

(65)  Council Recommendation of 16 June 2022 on ensuring a fair 
transition towards climate neutrality (2022/C 243/04) covers 
employment,  skills, 
tax-benefit  and  social  protection 
systems, essential services and housing. 

(66)  See  the  2022  country  report,  Annex  6  and  Annex  3  for  an 

overview. 

(67)  Department 

of 

the 

Climate 

Environment, 

and 
Communications press release – ‘Programme for the EU Just 
Transition  Fund’  investment  of  €169  million  in  Midlands 
region  officially 
launched,  https://www.gov.ie/en/press-
release/54a6d-programme-for-the-eu-just-transition-fund-
investment-of-169-million-in-midlands-region-officially-
launched/  

(68)  Mining  and  quarrying  (NACE  B),  chemicals  (C20),  minerals 

quarrying  has  fallen  by  18.3%  since  2015  (to 
around 5 800 workers in 2023). Job vacancy rates 
in  transforming  sectors,  such  as  water  supply, 
sewerage,  waste  management  and  remediation 
activities,  are  rising  (see  Graph  A8.2),  and  the 
move  away  from  peat  harvesting  to  renewables 
like  wind  and  biomass  is  creating  more  high-
quality green jobs (69). In construction, a key sector 
for  the  green  transition,  the  job  vacancy  rate  is 
much lower than the EU average (0.7% vs 3.6% in 
the EU in 2023). According to the European Labour 
Authority 
shortages  were 
reported in 2023 for a number of occupations that 
required specific skills or knowledge for the green 
transition (71),  including  civil  engineers,  plumbers 
and pipe fitters and engineering professionals not 
elsewhere classified. 

(ELA) (70), 

labour 

Graph A8.1: Fair transition challenges in Ireland 

Source: Eurostat, EU Labour Force Survey, EMPL-JRC GD-
AMEDI/AMEDI+ and DISCO(H) projects (see Table A8.1). 

Upskilling  and  reskilling  are  key  for  workers 
in energy-intensive industries, particularly in 
regions  affected  by  the  green  transition.  By 
2030, between 2 600 and 2800 additional skilled 
workers will be needed for the deployment of wind 
require  an 
and  solar  energy,  which  may 
investment  in  skills  of  EUR  25-31  million (72).  To 
promote  skills development, the RRP and the Just 
Transition  Mechanism  provide 
for 
reskilling  workers  in  regions  affected  by  the 
transition, together with a broader training offer at 

training 

(69)  See ‘Bord na Mona’, https://www.bordnamona.ie/  

(70)  Based on the European Labour Authority 2024 EURES Report 
on labour shortages and surpluses 2023, i.e., data submitted 
by the EURES National Coordination Offices. 

(71)  Skills  and  knowledge  requirements  are  based  on  the 
(ESCO) 

European  Skills  Competences  and  Occupations 
taxonomy on skills for the green transition. 

(C23), metals (C24) and automotive (C29) 

(72)  EMPL-JRC AMEDI+ project. 

44 

0.00.51.01.52.0Greenhouse gasemissions per workerEmployment inEnergy-IntensiveIndustriesEnergy povertyTransport poverty(proxy)Carbon inequalityIE Latest vs EU LatestEU LatestIE 2015 vs EU Latest 
 
 
  
 
 
Table A8.1:  Key indicators for a fair transition in Ireland 

Source: Eurostat (env_ac_ainah_r2, lfsa_egan2d, ilc_mdes01), EU Labour Force Survey (break in time series in 2021), EMPL-JRC 
GD-AMEDI/AMEDI+ and DISCO(H) projects. 

national  level  under  the  SOLAS  recovery  skills 
programme. 

Graph A8.2: Job vacancy rate in transforming 
sectors and mining and quarrying 

B - Mining and quarrying 
C - Manufacturing 
D - Electricity, gas, steam and air conditioning supply 
E - Water supply; sewerage, waste management and 
remediation activities 
F - Construction 
H - Transportation and storage  
Source: Eurostat (jvs_a_rate_r2). 

the 

(9.3%) (74).  However, 

Energy  poverty  indicators  have  significantly 
worsened recently, due to the spike in energy 
prices (73). The share of the population unable to 
keep  their  homes  adequately  warm  decreased 
from 9.0% in 2015 to 7.2% in 2022, below the EU 
average 
indicator 
increased by 4.0 percentage points between 2021 
and  2022  on  the  back  of  energy  price  increases 
due to supply constraints caused by the COVID-19 
pandemic  and  Russia’s  war  of  aggression  against 
Ukraine,  despite 
the  emergency  measures 
implemented in Ireland. In particular, 12.2% of the 
population  at  risk  of  poverty  (AROP)  (EU:  20.1%) 
and  6.8%  of  lower  middle-income  households  (in 
deciles 4-5) (EU: 11.6%) were unable to keep their 
homes adequately warm in 2022. Also, in January 

(73)  Economic  and  Social  Research  Institute  (2022)  –  energy 

poverty at highest recorded rate. 

(74)  Energy poverty is a multi-dimensional concept. The indicator 
used  focuses  on  an  outcome  of  energy  poverty.  Further 
indicators are available at the Energy Poverty Advisory Hub. 

2023,  43.6%  of  the  population  at  risk  of  poverty 
spent  a  considerable  proportion  of  their  budget 
(more  than  6%)  on  private  transport  fuels  (EU: 
37.1%) (75). Ireland responded to energy poverty by 
implementing temporary solutions, such as raising 
fuel allowances and providing one-time lump-sum 
welfare payments. Ireland also adopted the Energy 
Poverty  Action Plan, published in December 2022, 
with  actions  focused  on  improving  the  efficiency 
of  homes,  supporting  lower  income  households 
with their energy costs and minimising the costs of 
climate and energy security policy for consumers. 

Despite  being  below 
the  EU  average, 
environmental inequalities remain an issue in 
Ireland.  In  2021,  the  consumption  footprint   for 
20%  of  the  population  with  the  highest  income 
was  1.5  times  higher  than  the  footprint  of  the 
poorest  20% (76)  (EU:  1.8). For  the  richest  20%  of 
households,  the  consumption  footprint  is  highest 
for food and mobility while for the poorest 20% of 
households it is for food and housing. In 2021, the 
average levels of air pollution stood below the EU 
average (7.0 vs 11.4 µg/m3 PM2.5), and all regions 
were  below  critical  levels  of  air  pollution (77). 
However,  it  is  estimated  that  more  than  400 
premature  deaths  annually  were  due  to  exposure 
to air pollution (78). 

(75)  Affordability of private transport fuels is one key dimension 
of transport poverty. The indicator has been developed in the 
the  EMPL-JRC  GD-AMEDI/AMEDI+  projects. 
context  of 
Methodology explained in Economic and distributional effects 
of higher energy prices on households in the EU. 

explained 

(76)  Developed in the context of the EMPL-JRC DISCO(H) project. 
Methodology 
Centre, 
2024. Carbon  and  environmental  footprint  inequality  of 
household  consumption  in  the  EU.  JRC137520. The  EU 
average refers to EU27 without Italy (household income data 
not available for IT in the HBS). 

Research 

in Joint 

(77)  Two times higher than the recommendations in the WHO Air 

Quality Guidelines (annual exposure of 5µg/m3). 

(78)  EEA - Air Quality Health Risk Assessment 

45 

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%BCDEFHEU 2023IE 2023IE 2015IndicatorDescriptionIE 2015IEEUGHG per workerGreenhouse gas emissions per worker – CO2 equivalent tonnes28.423.9 (2022)14.3 (2022)Employment EIIEmployment share in energy-intensive industries, including mining and quarrying (NACE B), chemicals (C20), minerals (C23), metals (C24) and automotive (C29)1.2%0.9% (2023)3.5% (2023)Energy povertyShare of the total population living in a household unable to keep its home adequately warm9.0%7.2% (2022)9.3% (2022)Transport poverty (proxy)Estimated share of the AROP population that spends over 6% of expenditure on fuels for personal transport39.9%43.6% (2023)37.1% (2023)Carbon inequalityRatio between the consumption footprint of the top 20% vs bottom 20% of the income distribution1.41.5 (2021)2.7 (2021) 
 
      
 
 
 
  
 
Ireland has progressed in its commitment to 
ensuring  a  fair  transition  towards  climate 
neutrality  in  the  context  of  the  Council 
Recommendation  of  2022.  Its  Just  Transition 
framework  is  endorsed  in  its  climate  action  plan. 
Key administrative organisations are implementing 
the  different  measures.  The  fair  transition  is 
supported  by  the  JTF  and  national  resources, 
especially  in  the  regions  most  affected  by  the 
green  transition.  Ireland  is  making  efforts  to 
involve stakeholders and the wider public in policy 
planning.  Regulations  in  the  field  of  occupational 
safety  and  health  are  focused  on  trends  of  the 
green  economy  and  new 
renewable  energy 
sources. As regards public procurement, the Green 
Public Procurement Guidance for the Public Sector 
contains  sustainable  and  green  requirements. 
Ireland  plans  to  gradually  increase  carbon  tax 
rates  until  2030  and  to  allocate  the  revenues  to 
support the green transition (79).  

(79)  Based  on 

the  monitoring 

the  Council 
Recommendation  on  ensuring  a  fair  transition  towards 
climate neutrality, which took place in October 2023. 

review  of 

46 

 
 
PRODUCTIVITY 
ANNEX 9: RESOURCE PRODUCTIVITY, EFFICIENCY AND CIRCULARITY 

The green transition of industry and the built 
environment,  in  particular  decarbonisation, 
resource  efficiency  and 
is 
essential  to  boost  Ireland’s  competitiveness. 
In  this  regard,  priorities  for  Ireland  are  waste 
management  and  the  use  of  circular  materials  in 
industry and construction. 

circularity, 

due 

Plan 

goals,  mainly 

Despite  some  positive  trends,  Ireland  is  not 
on  track  to  achieve  the  Circular  Economy 
to 
Action 
unsustainable  waste  management  and  low 
use  of  recycled  materials.  Ireland’s  material 
footprint  dropped  to  10.19  tonnes  per  capita  in 
2020  and  then  increased  to  12.10  tonnes  per 
capita  in  2022,  which  is  below  the  EU  average. 
Waste  production  per  capita  fluctuated  below  the 
EU average and amounted to 3.3 tonnes per capita 
in  2022.  The  2022  Eco-Innovation  Scoreboard 
placed  Ireland  in  the  ‘average  performers  group’, 
with  a  score  of  110.4.  Furthermore,  as  of 
September  2023,  Ireland  totalled  19  awarded  EU 
Ecolabel  licences  and  147  products  with  the  EU 
Ecolabel, 
in  2022. 
recovering  after  a  drop 
However,  the  take-up  of  licences  and  products 
remained  low.  There  is  still  room  to  make  better 
use  of  the  potential  of  the  circular  economy 
transition to drive the decarbonisation of Ireland’s 
industry. 

Graph A9.1: ETS emissions by sector since 2013 

Source: European Commission. 

In Ireland, greenhouse gas emissions covered 
by the EU emissions trading system (ETS) (80) 
have  declined  very  slowly  since  2013.  In 

(80)  This  analysis  excludes  air  travel.    For  more  details  and  the 
data  sources,  see  Weitzel,  M;  van  der  Vorst,  C.  (2024), 
Uneven  progress  in  reducing  emissions  in  the  EU  ETS,  JRC 
Science for policy brief, JRC138215, Joint Research Centre. 

47 

2023,  56%  of  emissions  from  ETS  installations 
came  from  power  generation,  with  another  23% 
originating  from  cement  and  lime  production (81). 
Total ETS emissions were 14% lower in 2023 than 
in  2019.  At  the  same  time,  greenhouse  gas 
emissions  in  industry  sectors  (cement  and  lime, 
refineries,  and  other  industries)  declined  by  10%. 
Looking  back  to  2013,  greenhouse  gas  emissions 
in  power  generation  declined  by  37%  but 
increased in the industry sectors, driven by a 36% 
increase for cement and lime production. 

improve  the  efficiency  of  the 

There is still room to make better use of the 
potential  of  the  circular  economy  transition 
Irish 
to 
industry.  The  use  of  secondary  material  hovered 
well below the EU average, reaching 1.8% in 2022. 
By  contrast,  resource  productivity  has  steadily 
increased  in  recent  years,  showing  better  results 
than  the  EU  average.  In  2022,  it  stood  at 
3.7 purchasing  power  standards  per  kilogram. 
Resource  productivity  expresses  how  efficiently 
the  economy  uses  material  resources  to  produce 
wealth.  Improving  resource  productivity  can  help 
minimise  negative  impacts  on  the  environment 
and  reduce  dependence  on  volatile  raw  material 
markets.  Furthermore,  Ireland  was  dependent  on 
imports  for  33.1%  of  materials  used  in  2022, 
compared  with  an  EU  average  of  22.4%,  making 
the  country  comparatively  more  vulnerable  to 
supply chain disruptions. 

Ireland  will  benefit  from  stepping  up 
investment  in  recycling  to  meet  all  EU 
targets for 2025.  Municipal waste generation in 
Ireland is higher than the EU average, and 40.8% 
of it was recycled in 2020. The country is on track 
to  meet the  2025  targets  for  packaging  recycling 
but  is  at  risk  of  missing  the  one  for  municipal 
waste.  The  plastic  packaging  recycling  rate  is  still 
cause  for  concern  and  stood  at  27.9%  in  2021, 
well  below  the  EU  average  of  40.7%.  In  recent 
years,  Ireland  has  shifted  from  landfilling  to 
incineration, which has become prominent in waste 
treatment.  The  country  is  on  track  to  achieve  the 
target  of  a  maximum  of  10%  of  landfilling  by 

(81)  Peat  almost  disappeared  from  the  power  generation  mix  in 
2022, but the use of coal temporarily increased in 2021 and 
2022  after  declining  sharply  in  previous  years.  In  addition, 
gas remained the primary source of electricity generation in 
2022,  despite  the  significant  increase  in  renewables  in  the 
past decade. 

00.20.40.60.8102468101214161820132014201520162017201820192020202120222023Emissions relative to 2013Mt CO2eCement & LimeChemicalsMetalsRefineriesPower generationOtherIreland (both axes) 
 
 
  
 
 
 
 
 
Table A9.1:  Circularity indicators 

Source: Eurostat, European Environment Agency. 

2035.  Furthermore,  83.4%  of  e-waste  was 
recycled in 2021, above the EU average of 81.3%. 
Furthermore,  a  total  of  4  new  patents  on  waste 
and recycling were awarded in 2019, confirming a 
trend of slow circular economy innovation uptake. 

Graph A9.2: Treatment of municipal waste 

(cadmium,  mercury,  and  lead),  the  emissions  of 
which  increased  by  218%.  Emissions  into  water 
show 
less  encouraging  trends,  with  a  28% 
increase  in  nitrogen,  total  organic  carbon  and 
improve 
Ireland  has  scope 
phosphorous. 
hazardous  waste  treatment.  In  2020,  the  country 
produced 178 kg of hazardous waste per capita – 
well below the EU average of 214 kg per capita – 
and treated only 12.4% of it. 

to 

built 

environment. 

There  is  scope  to  improve  the  efficiency  of 
Ireland’s 
Ireland’s 
residential  and  non-residential  floor  areas  per 
capita  are both  below  the  EU  average.  They have 
slightly  decreased  over  time,  unlike  in  the  rest  of 
the  EU.  In  2020,  Ireland  submitted  a  long-term 
renovation  strategy  aiming  to  decarbonise  the 
building  stock.  Circular  economy  principles  in  line 
with  whole-life  carbon  approaches  for  buildings 
would need to be integrated into the planning.  

built 

environment, 

Despite  some  positive  trends,  there  is  still 
room  for  improving  waste  management  in 
Ireland’s 
especially 
regarding wastewater treatment. After a drop 
in  2012,  waste  generated  from  construction  and 
demolition  activities  per  capita  dramatically 
increased, even though it remained well below the 
EU  average.  The  proportion  of  backfilling 
decreased  to  55.5%  in  2020,  above  the  EU 
average  of  9.9%.  Ireland’s  recovery  rate  equalled 
100%  in  2020,  achieving  the  Waste  Framework 
Directive’s  target  for  2020.  In  2021,  62%  of  the 
Irish  population  was  connected  to  at 
least 
secondary  wastewater  treatment,  well  below  the 
EU average. 

Source: Eurostat. 

Ireland  has  scope  to  further  limit  pollution 
from industry. In 2021, the impact of particulate 
matter emissions from industry on air quality was 
lower than the EU average. In 2021, the grams of 
PM  10  emitted  per  economic  output  (EUR’10) (82) 
decreased to 0.02, versus an EU  average of 0.09. 
Moreover,  between  2010  and  2021,  Ireland’s 
industrial  sector  decreased  its  emissions  into  the 
air of all main pollutants except for heavy metals 

(82)  In 2010 prices. 

48 

59862564400010020030040050060070020182019202020212022Kg per capita Waste treatment to be determinedLandfill/disposalTotal incineration (including energy recovery)Composting and digestionMaterial recyclingEU-27201820192020202120222023EU-27Latest yearIndustryResource productivity (purchasing power standard (PPS) per kilogram)2.42.52.83.23.7-2.52022Circular material use rate (%)1.71.61.71.91.8-11.52022Eco-innovation index (2013=100)101.3100.4100.3100.8110.4-121.52022Recycling of plastic packaging (%)27.127.529.027.9--40.72021Cost of air emissions from industry (EUR bn)2.72.42.22.6--352.72021Built environmentRecovery rate from construction and demolition waste (%)100.0-:85.5--89.02020Soil sealing index (base year = 2006)104.4-----103.42018Non-residential floor area (m2 per capita)11.111.111.1---18.02020Waste backfilled (%)72.7-72.7-34.8-9.92020 
           
 
 
 
       
 
ANNEX 10: DIGITAL TRANSFORMATION 

Digital  transformation  is  key  to  ensuring  a 
resilient and competitive economy. In line with 
the  Digital  Decade  Policy  Programme,  and  in 
particular  with  the  Programme  targets  for  digital 
transformation  by  2030,  this  Annex  describes 
Ireland’s  performance  on  digital  skills,  digital 
infrastructure/connectivity and the digitalisation of 
businesses  and  public  services.  Where  relevant,  it 
makes reference to progress on implementing the 
Recovery  and  Resilience  Plan 
Ireland 
allocates  34%  of  its  total  RRP  budget  to  digital 
(EUR 313 million) (83).  Under  Cohesion  Policy,  an 
additional  EUR  54  million  (5%  of  the  country’s 
total  Cohesion  Policy  funding)  is  allocated  to  the 
country’s digital transformation (84). 

(RRP). 

The  Digital  Decade  Policy  Programme  sets 
out  a  pathway  for  EU’s  successful  digital 
transformation  by  2030.  Ireland’s  national 
roadmap outlines the actions it intends to take to 
reach the objectives and targets at national  level. 
The first Report on the State of the Digital Decade 
highlighted the need to accelerate and deepen the 
collective efforts to reach the EU-wide targets and 
objectives (85).  Among  others,  a  digitally  skilled 
population 
the  development  and 
adoption  of  digital  technologies  and  leads  to 
productivity  gains  and  new  business  models.  It 
also  leads  to  higher  inclusion  and  participation  in 
an environment increasingly shaped by the digital 
transformation (86). 
technologies, 
in 
infrastructure  and  tools  all  play  a  role 
addressing 
the  current  structural  challenges, 
including  strategic  dependencies,  cybersecurity 
and climate change.  

increases 

Digital 

(83)  The  share  of  financial  allocations  that  contribute  to  digital 
objectives  has  been  calculated  using  Annex  VII  to  the 
Recovery and Resilience Facility Regulation. 

(84)  This amount includes all investment specifically aimed at or 
substantially  contributing  to  digital  transformation  in  the 
2021-2027 Cohesion Policy programming period. The source 
funds  are  the  European  Regional  Development  Fund,  the 
Cohesion Fund, the European Social Fund Plus, and the Just 
Transition Fund. 

(85)  European  Commission  (2023):  Report  on  the  state  of  the 
Digital Decade 2023, 2023 Report on the state of the Digital 
Decade | Shaping Europe’s digital future (europa.eu). 

(86)  See  for  example  OECD  (2019):  OECD  Economic  Outlook, 
Digitalisation and productivity: A story of complementarities, 
OECD  Economic  Outlook,  Volume  2019  Issue  1  |  OECD 
iLibrary  (oecd-ilibrary.org)  and  OECD  (2019):  Going  Digital: 
Shaping 
Summary, 
https://www.oecd.org/digital/going-digital-synthesis-
summary.pdf. 

Improving 

Policies, 

Lives 

– 

49 

Ireland scores highly on all indicators related 
to  digital  skills.  In  Ireland,  the  share  of  the 
population that has at least basic digital skills and 
the  percentage  of  ICT  specialists  are  both  above 
the  EU  average  (73%  against  56%  in  the  first 
case,  6.2%  against  4.8%  in  the  second).  The  RRP 
includes  several  measures  to  further  improve 
basic  digital  skills,  in particular  those  of  students, 
and to increase the number of ICT graduates. 

Ireland 

Ireland  performs  well  in  the  area  of  digital 
infrastructure/connectivity. 
scores 
above  the  EU  average  in  fixed  (optical  fibre) 
broadband  coverage,  but  take-up  is  low  for  at 
least  1  Gbps  fixed  broadband  (9.5%  compared to 
the  EU  average  of  18.5%).  The  RRP  envisages 
building  a  low-latency  edge  platform  to  harness 
5G technology for the benefit of public services. 

Irish  businesses  have 
integrated  digital 
technology  to  a  good  extent.  The  share  of 
SMEs with at least a basic level of digital intensity, 
at  66%,  is  considerably  above  the  EU  average  of 
58%. Businesses in Ireland are good at making use 
of available digital technologies. For example, use 
of  big  data,  artificial 
intelligence  and  cloud 
computing  services,  at  64%,  is  above  the  EU 
average  of  55%.  The  RRP 
includes  several 
measures  to:  (i)  support  the  digitalisation  of 
businesses 
Irish 
European  Digital  Innovation  Hubs);  (ii)  advance 
digital  capabilities  through  developing  a  shared 
government  data  centre;  and  (iii)  promote  digital-
related  investment  in  R&D.  In  2022,  2%  of 
enterprises  in  Ireland  reported  ICT  service  outage 
due  to  cyberattacks  (e.g.  ransomware  attacks, 
denial  of  service  attacks).  Over  the  same  year, 
35.4%  of  enterprises  developed  or  reviewed  their 
ICT security policy within the previous 12 months. 

the  creation  of 

(including 

in 

Public  services 
Ireland  are  highly 
digitalised,  for  both  businesses  and  citizens. 
Ireland scores 81 out of 100 on public services for 
citizens, above the EU average of 79, and 100 on 
public  services  for  businesses.  To  facilitate 
people’s  interaction  with  public  services,  Ireland 
has  set  up  an  electronic 
identification  (eID) 
scheme called MyGovID. However, Ireland has not 
yet notified this scheme to the Commission under 
the eIDAS Regulation. Ireland still performs weakly 
on  access to  e-health  records  with  a  score  of  11, 
when  the  EU  average  is  at  79.  The  RRP  aims  to 
create  an  online 
the 
population census and includes a suite of e-Health 
projects. 

response  option 

for 

 
 
 
 
Table A10.1:Key Digital Decade targets monitored by the Digital Economy and Society Index indicators 

(1) The 20 million target represents about 10% of total employment. 
(2) The fibre to the premises coverage indicator is included separately as its evolution will also be monitored separately and taken 
into consideration when interpreting VHCN coverage data in the Digital Decade. 
(3) At least 75% of EU enterprises have taken up one or more of the following, in line with their business operations: (i) cloud 
computing services; (ii) big data; (iii) artificial intelligence. 

Source: Digital Economy and Society Index. 

50 

EUDigital Decade target by 2030 2022202320242024(EU)Digital skillsAt least basic digital skills70%70%73%56%80%% individuals20212021202320232030ICT specialists (1)6.3%6.3%6.2%4.8%20 million% individuals in employment aged 15-7420212022202320232030Digital infrastructure/connectivityFixed very high capacity network (VHCN) coverage78%84%87%79%100%% households20212022202320232030Fibre to the premises (FTTP) coverage (2)62%72%78%64%-% households2021202220232023Overall 5G coverage72%84%85%89%100%% populated areas20212022202320232030Digitalisation of businessesSMEs with at least a basic level of digital intensity64%NA66%58%90%% SMEs2021202320232030Data analyticsNANA37%33%-% enterprises20232023Cloud47%47%53%39%-% enterprises2021202120232023Artificial intelligence8%8%8%8%-% enterprises2021202120232023AI or cloud or data analytics (3)NANA64%55%75%% enterprises202320232030Digitalisation of public servicesDigital public services for citizens80818179100Score (0 to 100)20212022202320232030Digital public services for businesses10010010085100Score (0 to 100)20212022202320232030Access to e-health recordsNA01179100Score (0 to 100)2022202320232030Ireland 
 
 
 
     
 
 
ANNEX 11: INNOVATION 

This  Annex  provides  a  general  overview  of 
the  performance  of  Ireland’s  research  and 
innovation  system,  which 
is  essential  for 
delivering  the  twin  transition  and  ensuring  long-
term competitiveness. 

Graph A11.1: Public expenditure on R&D as % of 
GDP and GNI* 

is  a 

‘strong 

the  European 

Ireland 
innovator’  with  a 
performance  above  the  EU  average,  though 
increasing  at  a  slower  pace.  According  to  the 
2023  edition  of 
Innovation 
Scoreboard  (EIS),  Ireland  is  at  115.8%  of  the  EU 
average,  which  is  above  the  average  for  strong 
in  2022 (87). 
innovators,  although 
Ireland’s  EIS  performance  is  still  increasing  (by 
2.3 percentage  points  between  2016  and  2023) 
but at a significantly lower rate than the EU during 
include 
the  same  period 
employment  in  knowledge-intensive  activities  and 
the  percentage  of  people  with  tertiary  education, 
while the main weakness remains the low level of 
R&D investment, in particular in the public sector. 

(8.5 pps).  Strengths 

lower  than 

Ireland’s  R&D  intensity  (R&D  expenditure  as 
a  percentage  of  GDP)  in  2022,  at  0.96%  of 
GDP, continues to be among the lowest in the 
EU.  However,  Ireland’s  increasing  GDP  has  an 
impact  and,  in  terms  of  modified  gross  national 
income  (GNI*),  which  excludes  distortions  from 
foreign-owned firms, Ireland’s R&D intensity (R&D 
expenditure as a percentage of GNI*) in 2022 was 
significantly  higher  at  1.78%  and  the  absolute 
level  of  R&D  investment  continues  to  grow (88). 
Nevertheless, research intensity in Ireland in terms 
of GDP has been on a declining trend since 2010 
(-4.1%  per  year)  while  public  R&D  intensity,  at 
0.2%  in  2022  (0.37%  of  GNI*),  is  among  the 
lowest  in  the  EU  and  reaching  the  research 
intensity target of 2.5% of GNI* by 2030 will be a 
challenge. 

(87)  European 

European 

Commission 

Innovation 
(2023) 
Scoreboard  2023  –  Country  profile  Ireland,  ec_rtd_eis-
country-profile-ie.pdf 
(europa.eu).  The  EIS  provides  a 
comparative  analysis  of  innovation  performance  in  the  EU 
countries, including the relative strengths and weaknesses of 
their  national  innovation  systems  (also  compared  to  the  EU 
average). 

Source: Eurostat. 

innovation 

research 
in 

(R&I) 
and 
The 
investments 
recovery  and 
Ireland’s 
resilience  plan  (RRP)  can  be  expected  to 
boost  overall  R&D  intensity  while  directing 
R&I  efforts  towards  accelerating  the  twin 
transitions.  The  national  grand 
challenge 
measure uses challenge-based funding to support 
research 
incentivises 
researchers to focus on projects with the potential 
to  contribute  to  the  climate,  healthcare  and 
agriculture  sectors  and  facilitate  the  green  and 
digital  transition.  Several calls  under  the measure 
are already being implemented. 

innovation 

and 

and 

Ireland  has  a  relatively  well-developed  R&I 
system including the public science base. This 
is reflected in the level of high-quality publications 
(although decreasing slightly in recent years), new 
graduates in science and engineering, and science-
business linkages, including the flagship Disruptive 
Technologies Innovation Fund (DTIF). Ireland’s R&I 
strategy,  Impact  2030,  identifies  the  need  for  a 
resilient  research  base  and  aims  to  deliver 
system-wide 
impacts  and  add  value  to  the 
activities of R&I performers and funders, including 
through  the  establishment  of  a  single  funding 
agency  for  public  research (89).  However,  the  very 
low  level  of  public  R&D  intensity  may  be  placing 
this relatively good performance at risk. 

Tax  credits  are  an 
important  tool  for 
stimulating  firm-level  R&D  investments  but 
may not be as useful for supporting SMEs as 
direct  funding  instruments.  Tax  credits  can  be 
effective but might not be as helpful  to start-ups 

(88)  Department  of  Further  and  Higher  Education,  Research, 
Innovation  and  Science 
(2024),  The  Research  and 
Development  Budget  2022-2023,  gov  -  The  Research  and 
Development Budget 2022 to 2023 (www.gov.ie) 

(89)  Department  of  Further  and  Higher  Education,  Research, 
Innovation  and  Science  (2022),  Impact  2030:  Ireland’s 
research and innovation strategy (2022), gov - Impact 2030: 
Ireland’s Research and Innovation Strategy (www.gov.ie) 

51 

0.10.20.30.40.50.60.70.80.92010201520172018202020212022EUIEIE (GNI*) 
 
 
   
 
 
Table A11.1:Key innovation indicators 

(1) EU average for the last available year or the year with the largest number of country data. 
Source: Eurostat, OECD, DG JRC, Science-Metrix (Scopus database and EPO’s Patent Statistical Database), Invest EU. 

and innovative young firms in emerging sectors, as 
highlighted  in  the  current  smart  specialisation 
strategy (90).  While  SMEs  continue  to  comprise 
most claimants of the R&D  tax credit, large firms 
dominate in terms of the overall cost of the credit 

and  the  size  of  individual  claims (91).  Greater  use 
of  direct  funding 
instruments  could  help  to 
stimulate research and innovation and improve the 
productivity of firms, especially SMEs. 

(90)  Department  of  Enterprise,  Trade  and  Employment  (2022), 
National  smart  specialisation  strategy  for  innovation  2022-
2027, national-smart-specialisation-strategy-for-innovation-
2022-2027.pdf (enterprise.gov.ie) 

(91)  National Competitiveness & Productivity Council (20213), 

Ireland’s Competitiveness Challenge 2023, 
https://www.competitiveness.ie/publications/2023/ireland%2
0s%20competitiveness%20challenge%202023.pdf  

52 

EUaverage(1)R&D intensity (GERD as % of GDP)1.591.181.151.110.962.24R&D intensity (GERD as % of GNI*)2.061.922.142.071.78Public expenditure on R&D as % of GDP0.500.330.240.220.20.73Public expenditure on R&D as % of GNI*0.650.540.450.410.37Business enterprise expenditure on R&D (BERD) as % of GDP1.100.850.90.890.771.48Business enterprise expenditure on R&D (BERD) as % of GNI*1.431.381.681.661.43Scientific publications of the country within the top 10% most cited publications worldwide as % of total publications of the country 11.612.511.39::9.6Patent Cooperation Treaty patent applications per billion GDP (in PPS)2.31.91.76::3.4Public-private scientific co-publications as % of total publications7.69.89.48.99.27.6Public expenditure on R&D financed by business enterprise (national) as % of GDP0.0110.009:0.007:0.054Public expenditure on R&D financed by business enterprise (national) as % of GNI*0.0140.015:0.013:New graduates in science & engineering per thousand pop. aged 25-3417.818.22626.9:16.9Total public sector support for BERD as % of GDP0.1790.316:0.207:0.204Total public sector support for BERD as % of GNI*0.2320.513:0.385:R&D tax incentives: foregone revenues as % of GDP0.1340.2690.1750.174:0.104R&D tax incentives: foregone revenues as % of GNI*0.170.440.3260.324:Share of environment-related patents in total patent applications filed under the Patent Cooperation Treaty (%)9.409.708.80::14.70Venture capital (market statistics) as % of GDP0.0420.0440.0690.0570.070.085Venture capital (market statistics) as % of GNI*0.050.070.130.1060.130Employment share of high growth enterprises measured in employment (%):21.67:::12.51Finance for innovation and economic renewalKey indicators Quality of the R&I systemAcademia-business cooperationHuman capital and skills availabilityPublic support for business enterprise expenditure on R&D (BERD)Green innovation 2022Ireland2010201520202021 
 
 
 
   
 
ANNEX 12: INDUSTRY AND SINGLE MARKET 

Ireland’s  economy  has  been  resilient  in  the 
face of overlapping crises, but mixed signals 
may  point  to  a  slowdown.  Ireland  boasts  the 
second  highest  GDP  per  capita  in  the  EU,  behind 
Irish  economy 
Luxembourg.  However,  as  the 
comprises  both  large  multinationals  and  smaller 
domestic  firms,  headline  indicators  mask  signals 
on  the  state  of  the  economy’s  competitiveness. 
Following rapid growth of 9.4% in 2022, Ireland’s 
GDP  growth  declined  by  -3.2%  in  2023  as  post-
pandemic  exports  from  the  multinational  sector 
in  sectors  such  as 
subsided,  most  notably 
ICT 
and 
pharmaceuticals, 
manufacturing.  At  the  same  time,  accounting  for 
the  distortions  caused  by 
the  presence  of 
multinationals, Irish domestic activity appeared to 
be  more  robust  despite  the  overall  slowdown  in 
the economy.  

chemicals 

Headline  productivity  levels  are  strong,  but 
underlying  figures  suggest  Ireland’s  two-
speed  economy  lags  top  performing  Member 
States. In 2023, Irish labour productivity was the 
highest in  the  EU,  197% of  the  EU  average.  Over 
the past 5 years, industrial productivity growth has 
surged  by  7.7%,  way  above  the  EU  average  of 
1.2%.  However, 
Irish  productivity  figures  are 
artificially distorted due to the strong presence of 
multinationals (92).  Accounting 
distortion 
effects  by  using  gross  national  income* (93),  Irish 
productivity growth remains strong, but it lags top 
performing  Member  States.  Moreover,  Ireland’s 
productivity  growth 
is  powered  by  sectors 
dominated  by  multinationals,  with  domestic  firms 
lagging  way  behind.  This  results  in  a  two-speed 
economy.  In  2023,  labour  productivity  in  Ireland’s 
foreign-owned  sector  was  roughly  seven  times 
greater than in Ireland’s domestic sector (94).   

for 

(92)  Irish  GDP  developments  and  multinational  enterprises’ 

activities, 
https://ec.europa.eu/economy_finance/forecasts/2022/summ
er/ip183_en_thematic_box_1.pdf  

(93)  Demystifying Ireland’s national income: a bottom-up analysis 
of  GNI*  and  productivity  https://www.fiscalcouncil.ie/wp-
content/uploads/2023/06/Demystifying-Irelands-national-
income-a-bottom-up-analysis-of-GNIstar-and-productivity-
202306final.pdf 

(94)  CSO, Productivity in Ireland Quarterly – 

https://www.cso.ie/en/statistics/nationalaccounts/productivityi
nirelandquarterly/  

Graph A12.1: Labour productivity comparison 

Source: CSO Ireland. 

tax 

remain 

receipts 

Ireland’s  lopsided  industrial  policy  exposes 
risks for its economic resilience. Its reliance on 
multinationals for economic development exposes 
concentration  risks  for  the  economy.  The  Irish 
Fiscal  Advisory  Council  has  warned  that  Ireland’s 
corporation 
“incredibly 
concentrated  and  inherently  very  risky” (95).  It 
estimates  that  the  top  three  firms  account  for 
43% of corporation tax receipts (96). Ireland spends 
significantly less than other countries on small and 
medium-sized enterprises (SMEs) and young firms 
due to its focus on low corporate income taxes to 
boost  its  competitiveness.  OECD  data  shows  that 
Ireland  allocates  0.02%  of  GDP  to  SME-focused 
areas, compared to a benchmark of 0.25% of GDP 
for 
The 
concentration  of  a  small  number  of  highly 
productive  multinationals  in  a  narrow  range  of 
sectors has led to asymmetric impacts on the Irish 
economy.  One  study  in  2019 (98)  showed  that  a 
largest  firms 
productivity  shock  to  the  five 

economies (97). 

advanced 

similar 

(95)  Fiscal Assessment Report, IFAC, 2023 

https://www.fiscalcouncil.ie/wp-
content/uploads/2023/12/Fiscal-Assessment-Report-
December-2023-Irish-Fiscal-Advisory-Council-Dublin.pdf  

(96)  Irish  Fiscal  Advisory  Council,  https://www.fiscalcouncil.ie/wp-

content/uploads/2023/12/Box-F-What-is-happening-
Irelands-corporation-taxes.pdf  

(97)  OECD,  Quantifying 

(QuIS)  project, 
benchmarking  countries:  Ireland,  Denmark,  France,  Italy, 
Netherlands, Sweden, United Kingdom, Canada, and Israel. 

Industrial  Strategies 

(98)  What  is  behind  aggregate  productivity  growth  in  Ireland? 

https://enterprise.gov.ie/en/publications/publication-
files/research-paper-what-is-behind-aggregate-productivity-
growth-in-ireland.pdf  

53 

0501001502002503003504004505002011201520192023EUR per hourDomestic and othersForeign-ownedTotal Economy 
 
 
   
 
 
accounted  for  about  one-third  of  aggregate 
productivity growth.  

Shortages in labour, skills, and materials are 
limiting  growth.  With  low  unemployment  levels 
and  high  vacancy  rates,  Ireland’s  labour  market 
may  be  experiencing  a  skills  mismatch.  Over  the 
past  5  years,  labour  shortages  have  been  more 
acute in Ireland than in other Member States (see 
table  A12.1).  In  2023,  nearly  two-fifths  of  firms 
said  they  faced  constraints  in  labour  supply, 
almost double the EU average. Ireland suffers not 
only from a shortage of labour but also skills (see 
Annex 14). According to the EIB Investment Survey, 
91% of Irish firms cite a dearth of skilled staff as 
a  barrier  to  investment,  one  of  the  highest in  the 
EU (99). Since 2012, multinational employment has 
doubled  compared  to  an  increase  of  just  over  a 
third in the domestic sector. In addition, half of all 
Irish  SMEs  cite  difficulties  in  hiring  workers  with 
the  right  skills  as  the  most  serious  problem  for 
their  business (100).  To  help  alleviate  skills 
shortages, 
Employment 
Permit (101)  was 
introduced,  which  eliminates 
jobs  and 
labour  market  tests  for  strategic 
streamlines  permitting  procedures  for  workers 
from  outside  the  European  Economic  Area.  In 
2022-2023,  ICT  professionals  accounted  for  a 
fifth  of  all  permits  issued,  the  second  highest 
sector  behind  healthcare  workers (102).  As  well  as 
shortages  in  labour,  material  shortages  are  a 
major  limiting  factor  to  activity.  In  2023,  41%  of 
Irish  firms  in  industry  reported  shortages  in 
materials or equipment, more than double the  EU 
average (17%). 

the  Critical 

Skills 

Finance  remains  a  significant  cost  for 
businesses,  in  particular  SMEs.  The  cost  of 
borrowing  for  Irish  businesses  has  long  been 
above  the  euro  area  average  and  one  of  the 
highest  in  Europe.  While  the  premium  above  the 
euro  area  average  has  fallen  due  to  monetary 
tightening,  interest  rates  in  Ireland  are  at  their 
highest  since  2008 (103).  With  only  three  fully 

(99)EIB Investment Survey 2023. 

(100)Eurobarometer 2961 / FL537. 

operating banks in the market following the exit of 
Ulster  Bank  and  KBC,  there  are  fewer  financing 
options for SMEs, and the lack of competition may 
push up borrowing costs further. Demand for bank 
financing  has  decreased  over  the  past  decade, 
falling  from  a  peak  of  39%  in  2012,  to  18%  in 
2023 (104).  In  parallel,  refusal  rates  have declined, 
with  the  percentage  of  businesses  refused  or 
rejected  loans  falling  to  3.1%  in  2023 (105).  The 
contraction  in  traditional  financing  demands  by 
SMEs  has  partly  been  replaced  by  wide-ranging 
government support provided by agencies such as 
the 
Enterprise 
development  of  Ireland’s  growing  non-banking 
finance market (see Annex 18).  SMEs suffer from 
late payments, with around 43% experiencing late 
payments  in  the  last  6  months  and  payment 
delays of over 2 weeks, both public (18 days) and 
private (15 days), which is roughly in line with the 
EU averages.  

increasingly  by 

Ireland,  and 

In  2023, 

Delays  in  delivering  quality  infrastructure 
Ireland’s  growth  potential,  but 
hinders 
progress  is  being  made. 
Ireland 
achieved  its  highest  place  in  the  IMD  World 
Competitiveness Ranking, ranking 2nd,  9 positions 
higher  than  the  previous  year (106).  In  contrast  to 
its 
lofty  overall  score,  mainly  thanks  to  its 
economic  performance,  Ireland  ranks  19th  on 
Infrastructure  and  29th  on  the  sub-pillar  Basic 
infrastructure.  One  of  the  main  bottlenecks  for 
In 
infrastructure 
November 2023, the Irish government put forward 
the  Planning  and  Development  Bill.  It  aims  to 
streamline  the  planning  process,  notably  by 
introducing  deadlines  for  local  authorities  and  An 
Bord Pleanála (Ireland’s public planning body) and 
reducing  recourse  to  judicial  reviews.  Greater 
progress  is  being  made  in  relation  to  energy 
infrastructure,  in  particular  offshore  wind.  As  well 
as  the  publication  of  the  Maritime  Area  Planning 
Act 2021, Ireland completed its first offshore wind 
renewable energy auction in 2023. The publication 

planning (107). 

delivery 

is 

(101)https://enterprise.gov.ie/en/what-we-do/workplace-and-
skills/employment-permits/permit-types/critical-skills-
employment-permit/  

(102)Employment  Permit  Statistics,  Department  of  Enterprise, 

Trade and Employment. 

(103) ECB Dashboard 

(104)SME Credit Demand Survey – 2023. 

https://www.gov.ie/pdf/?file=https://assets.gov.ie/291281/19
314c55-a002-4fda-aeac-8a4a877e9958.pdf#page=null   

(105)SAFE survey, ECB. 

(106)IMD, World Competitiveness Ranking 2023.  

(107)Ireland’s  Competitiveness  Scorecard  2023,  National 

https://data.ecb.europa.eu/data/datasets/MIR/dashboard  

Competitiveness and Productivity Council.   

54 

 
 
 
Ireland’s  Hydrogen  Strategy (108)  and 
of 
the 
National Industrial Strategy for Offshore Wind (109) 
illustrate  opportunities 
Ireland’s 
economic model.  

to  expand 

There are opportunities for Ireland to further 
integrate with the single market. Irish intra-EU 
trade has been below the EU average in the past 5 
years,  accounting  for  roughly  33%  of  its  GDP. 
While  Ireland  performs  better  than  most  EU 
Member  States  on  the  integration  of  services 
(17%  vs  EU  average  of  15%),  intra-EU  trade  for 
goods  accounted  for  less  than  20%  of  GDP  in 
2022,  compared  to  an  EU  average  of  31%.  Irish 
trade  is  asymmetric  and  concentrated.  In  2021, 
the top five exporters accounted for 44% of total 
goods  exports (110).  In  contrast,  data  from  the 
Survey on access to finance of enterprises (SAFE) 
shows  that  two  in  three  Irish  SMEs  do  not 
export (111). Of those exporting SMEs, only 14% of 
trade  was  destined  for  the  Eurozone,  behind  the 
UK (65%) and above the US (10%) (112). On single 
market  rules,  Ireland’s  scores  are  mixed,  with  the 
transposition  deficit  of  single  market  directives 
below the EU average but a conformity deficit on 
average greater than EU peers. At the same time, 
infringements  on  single  market  issues  are  below 
the  EU  average.  Ireland  solved  86.8%  of  the  53 
SOLVIT  cases  it  handled,  slightly  below  the  EU 
average of 88.3%. On public procurement, the low 
number of public procurement review proceedings 
initiated,  following  proposals  from  economic 
operators,  against  the  decisions  of  contracting 
authorities (and entities) raises concerns about the 
effectiveness  of  the  public  procurement  remedies 
system, linked to its affordability and speed.  

(108) National Hydrogen Strategy, 

https://www.gov.ie/pdf/?file=https://assets.gov.ie/263248/f98
2c10f-eca6-4092-a305-90000e5213ed.pdf#page=null  

(109) Ireland’s Offshore Wind Industrial Strategy, 

https://enterprise.gov.ie/en/publications/publication-
files/powering-prosperity.pdf   

(110) Eurostat,  Concentration of trade by NACE Rev. 2 activity.  

(111) SAFE survey. 

https://data.ecb.europa.eu/data/datasets/SAFE/SAFE.H.IE.SME.
A.0.0.0.D7.ZZZZ.EX1.AL.WP  

Graph A12.2: Non-exporting SMEs (%) 

Source: SAFE, ECB. 

Innovation is being held back by low levels of 
expenditure and lack of expertise (see Annex 
11). Ireland is a strong innovator, with more than 
half  of  firms  (57.6%)  engaging  in  innovation 
activities,  which  is  above  the  EU  average (113). 
While  performing  well,  Ireland’s  advantage  over 
the EU is becoming smaller, and there is a growing 
gap between foreign and domestic firms engaging 
in  innovation  expenditure.  R&D  expenditure,  even 
accounting 
by 
multinationals,  is  consistently  below  EU  levels, 
with  disparities  between  large  businesses  and 
SMEs. While the low uptake of SME tax credits is a 
barrier  to  R&D  investment,  expertise  in  R&D  is 
cited  as  the  second  highest  skills  shortage  for 
SMEs (114). 

distortions 

caused 

for 

is 

in 

the 

Ireland 
intermediatory  stage  of 
implementing  the  components  needed  to  connect 
to the Once-Only Technical System (OOTS) (115). As 
part of the Single Digital Gateway Regulation (116), 
the  system  will  enable  the  automated  cross-
border  exchange  of  evidence  between  competent 
authorities, improving online access to information, 
administrative  procedures  and  assistance  within 
Irish  competent 
the  EU.  The  onboarding  of 

(113) https://ec.europa.eu/eurostat/statistics-

explained/index.php?title=Community_Innovation_Survey_20
20_-_key_indicators  

(114) Eurostat. 

(112) SME Credit Demand Survey – April-September 2022. 

https://www.gov.ie/pdf/?file=https://assets.gov.ie/245813/77
48a172-f81f-4231-b74f-c0d07b343711.pdf#page=null  

(115) Implementing Regulation (EU) 2022/1463.  

(116) Regulation (EU) 2018/1724.  

55 

505254565860626466682014201520162017201820192020202120222023IrelandEurozone 
 
   
 
authorities  is  crucial  for  the  system  to  function 
smoothly and to reduce administrative burden.  

Table A12.1:Industry and the Single Market 

Source:  (1)  AMECO,  (2)  Eurostat,  (3)  Single  Market  Scoreboard,  (4)  OECD,  (5)  ECFIN  BCS,  (6)  COMEXT  and  Commission 
calculations,  (7)  EIB  Investment  Survey,  (8)  Intrum  Payment  Report,  (9)  SAFE  survey,  (10)  EIF  SME  Access  to  Finance  Index. 
* Own Commission calculations for the EU27 average. 

56 

POLICY AREAINDICATOR NAME20192020202120222023EU27 average*Net Private investment, level of private capital stock, net of depreciation, % GDP12812.7-4.3-3.2-2.63.8Net Public investment, level of public capital stock, net of depreciation, % GDP1110.80.811.2Real labour productivity per person in industry (% yoy)2-0.519.817.313.6-11.7-1.24Cost competitivenessNominal unit labour cost in industry (% yoy)24.9-17.3-12.8-8.9219.83Single Market integrationEU Trade integration, % (Average intra-EU imports + average intra EU exports)/GDP232.730.232.635.834.542.9Transposition deficit, % of all directives not transposed30.81.32.21.20.50.7Conformity deficit, % of all directives transposed incorrectly31.11.31.21.61.51.1SOLVIT, % resolution rate per country393.187.087.091.987.088.3Number of pending infringement proceedings3222623182325.9RestrictionsEEA Services Trade Restrictiveness Index40.050.050.050.050.050.05Single bids, % of total contractors3161415211628.6Direct Awards, %3024118.1Material Shortage (industry), firms facing constraints, %513.213.638.552.040.817.2Labour Shortage using survey data (industry), firms facing constraints, %517.39.224.846.837.523.3Vacancy rate, % of vacant posts to all available ones (vacant + occupied)21.0250.71.31.51.02.5Concentration in selected raw materials, Import concentration index based on a basket of critical raw materials60.140.140.150.160.190.22Installed renewables electricity capacity, % of total electricity produced243.344.745.647.4-53Investment obstaclesImpact of regulation on long-term investment, % of firms reporting business regulation as major obstacle716.113.518.48.013.022.2Bankruptcies, Index (2015=100)2-----105.6Business registrations, Index (2015=100)2115.493.4103.795.760.2120.2Payment gap - corporates B2B, difference in days between offered and actual payment8-1614141515Payment gap - public sector, difference in days between offered and actual payment8-2611191816Share of SMEs experiencing late payments in past 6 months, %943.239.334.938.642.648.7EIF Access to finance index - Loan, Composite: SME external financing over last 6 months, index values between 0 and 1100.210.220.240.49-0.49EIF Access to finance index - Equity, Composite: VC/GDP, IPO/GDP, SMEs using equity, index values between 0 and 110 0.200.130.160.14-0.17Public procurement IrelandHEADLINE INDICATORSEconomic StructureSINGLE MARKETComplianceAccess to financeECONOMIC STRUCTUREShortagesStrategic dependenciesBUSINESS ENVIRONMENT - SMEsBusiness demographyLate payments 
 
   
 
ANNEX 13: PUBLIC ADMINISTRATION 

Ireland’s  public  administration  is  essential 
for  the  economy's  competitiveness  by,  in 
particular,  shaping  the  conditions  for  the 
twin  transitions  and  creating  a  favourable 
business  environment.  Ireland’s  high  level  of 
perceived  government  effectiveness 
remains 
stable  compared  to  other  Member  States  (Graph 
A13.1).  In  2023,  the  government  launched  the 
Better Public Services strategy for 2030. It aims to 
in  public 
serve 
institutions 
innovation, 
through  digital  and 
ensuring the workforce of the future and evidence-
the  strategy 
informed  policies. 
highlights  the  public  sector's  leadership  role  in 
driving  climate  action (117).  A  set  of  measures  in 
the  National  Development  Plan  are  expected  to 
reduce  the  administrative  burden  associated  with 
delivering major capital projects. 

the  public  and  build  trust 

In  addition, 

Graph A13.1: Government effectiveness 

Average value over 2018-2022 and change over 2018-2022. 
The  GDP  per  head  bar  shows  the  mean  value  of  the 
government  effectiveness  indicator  for  the  group  of  EU 
countries  belonging  to  the  same  GDP  per  head  cluster  as 
Ireland  (EU  countries  are  ranked  in  terms  of  their  GDP  per 
head and grouped into three equally sized clusters). 
Source: Worldwide Governance Indicators. 

E-government  maturity  in  Ireland  scores 
close to the EU average. However, the share of 
users of government websites or applications and 
the  degree  of  development  of  open  government 
data are relatively high (Table A13.1). To improve 

(117) Department of Public Expenditure, NDP Delivery and Reform 

(2023), Better Public Services – Public Service 
Transformation 2030 Strategy, 
https://www.gov.ie/en/publication/80247-better-public-
services-public-service-transformation-2030-strategy/ 

is 

Ireland 

the quality of public services, including their digital 
following  a  design-led 
delivery, 
approach (118) by creating dedicated teams, setting 
out  pathways  for  reskilling  and  upskilling  staff, 
drawing  up  design-specific  job  descriptions  and 
for  procuring  design 
creating  a 
services.  This  approach  will  underpin  the  delivery 
of  seamless  life  events  via  a  digital  service 
(MyGovID). 

framework 

Ireland  is  taking  steps  to  maintain  the  civil 
service’s  good  age  and  skill  structure.  An 
independent  review (119)  confirmed  that  that  the 
recruitment  of  senior  civil  servants  is  robust. 
Additional  improvements  identified  in  the  review 
concerning  the  recruitment  process  are  related  to 
increased  transparency,  efficiency  in  time  and 
more  equal  opportunities.  This  is  important  given 
that  gender  parity  in  senior  civil  service  positions 
continues 
the  EU  average 
(Table A13.1).  A  Senior  Posts  Remuneration 
Committee  will  advise  the  government  on  a 
consistent approach to pay determination. In 2023, 
the  Public  Service  Apprenticeship  Plan  was 
increase  the  number  of  annual 
updated  to 
apprenticeships  across  the  public  service  and  in 
local  authorities.  Amendments  to  the  Public 
Service  Sick  Leave  Scheme  aimed  to  improve  the 
access and protection of staff experiencing illness. 

to  be  below 

faces 

policymaking 

Ireland’s 
certain 
shortcomings,  including  insufficient  cooperation 
between departments in policy design, a weak link 
between  policy  and 
limited 
stakeholder  engagement,  and  an  insufficient  use 
of evidence, data, and impact assessments (120). In 
2023,  new  structures  such  as  the  Research  and 
Innovation  Funding  Agency (121)  and  the  Civil 

implementation, 

(118) Department of Public Expenditure, NDP Delivery and Reform 
(2023), Action Plan for Designing Better Public Services, 
https://www.gov.ie/en/publication/1e3e2-action/ 

(119) Department of Public Expenditure, NDP Delivery and Reform 
(2023), Review of Senior Public Service Recruitment and Pay 
Determination Processes, 
https://www.gov.ie/en/publication/ddd08-review-of-senior-
public-service-recruitment-and-pay-determination-
processes/ 

(120) OECD (2023), Strengthening Policy Development in the 

Public Sector in Ireland, https://www.oecd-
ilibrary.org/governance/strengthening-policy-development-in-
the-public-sector-in-ireland_6724d155-en  

(121) Department of Further and Higher Education, Research, 

Innovation and Science press release, 
https://www.gov.ie/en/press-release/2ae5b-minister-harris-

57 

-0.20.00.20.40.60.81.01.21.41.61.8IEEU-27GDP perhead clusterChange 2018-2022Average 2018-2022 
 
   
 
 
 
 
Table A13.1:Public administration indicators 

(1) High values denote a good performance, except for indicator # 6. (2) 2023 value. If unavailable, the latest value  available is 
shown. (3) Measures the user centricity (including for cross-border services) and transparency of digital public services as well as 
the existence of key enablers for the provision of those services. (4) Defined as the absolute value of the difference between the 
percentage 
positions. 
Flags: (b) break in time series; (u) low reliability. 
Source:  E-government  activities  of  individuals  via  websites,  Eurostat  (#  1);  E-government  benchmark  report  (#  2);  Open  data 
maturity report (# 3); Labour Force Survey, Eurostat (# 4, 5, 7); European Institute for Gender Equality (# 6); Fiscal Governance 
Database (# 8, 9); OECD Indicators of Regulatory Policy and Governance (# 10). 

women 

service 

senior 

men 

civil 

and 

of 

in 

Service  Research Network were set up to improve 
the  link  between  research  and  policy  design. 
Furthermore, the guidelines on public consultations 
are  being  updated.  Ireland  is  also  working  to 
expand its approach to green budgeting (122) 

The lack of data on the efficiency of litigious 
and  non-litigious  civil  and  commercial  cases 
does not allow analysts to properly evaluate 
the  overall  efficiency  of  the  judicial  system. 
The  main  challenge  is  the  length  of  proceedings; 
according to the 2022 annual report of the Courts 
Service.  The  average  length  of  proceedings  in the 
High Court in 2022 was 871 days, an increase of 
74  days  from  2021.  The  EU  Justice  Scoreboard 
2024  states  that  in  2022  the  clearance  rate  for 

announces-taighde-eireann-research-ireland-as-the-official-
name-of-the-new-research-and-innovation-funding-agency/ 

Irish 

Ireland 

in  the 

several 

non-criminal cases was 84%, the lowest in the EU, 
partly due to cases being registered even if parties 
decide  not  to  pursue  them.  The  quality  of  the 
justice  system  is  good  overall.  The  number  of 
legal  system  has  been 
judges 
increased,  but  remains  low  in  comparative  terms, 
although 
non-court 
has 
adjudicative  bodies  dealing  with  cases  which,  in 
other  jurisdictions,  are  dealt  with in  the  courts by 
judges.  The  government  continues  to  work  to 
address concerns in relation to litigation costs and 
the  legal  aid  system.  The  level  of  digitalisation  is 
advanced,  and  Ireland  has  published  and  been 
implementing  several  digital  strategies  that  may 
contribute  to  fill  gaps  in  the  digitalisation  of 
justice.  On  judicial  independence,  no  systemic 
deficiencies have been reported (123). 

(122) Department of Public Expenditure, NDP Delivery and Reform 

(2021), Public Service Performance Reports, 
https://www.gov.ie/en/collection/61d3f-public-service-
performance-reports/ 

(123) For a more detailed analysis of the performance of the Irish 
justice  system,  see  the  2024  EU  Justice  Scoreboard 
(forthcoming)  and  the  country  chapter  on  Ireland  in  the 
Commission’s 2024 Rule of Law Report (forthcoming). 

58 

IE20192020202120222023EU-27(2)1n/an/an/an/a87.375.02n/a69.570.771.674.275.830.90.91.00.90.90.8462.365.967.8 (b)68.271.452.9515.311.615.4 (b)14.213.217.9635.433.833.420.622.69.271.61.71.9 (b)1.61.71.580.70.70.70.7n/a0.791.01.01.01.0n/a1.410n/an/a1.16n/an/a1.7Medium-term budgetary framework indexIndicator (1)E-government and open government dataShare of internet users within the last year that used a public authority website or appE-government benchmark overall score (3) Open data and portal maturity indexEducational attainment level, adult learning, gender parity and ageingShare of public administration employees with higher education (levels 5-8, %)Participation rate of public administration employees in adult learning (%)Gender parity in senior civil service positions (4)Ratio of 25-49 to 50-64 year olds in NACE sector OPublic financial management Strength of fiscal rules indexEvidence-based policy makingRegulatory governance 
 
 
 
      
 
FAIRNESS 
ANNEX 14: EMPLOYMENT, SKILLS AND SOCIAL POLICY CHALLENGES IN LIGHT OF 
THE EUROPEAN PILLAR OF SOCIAL RIGHTS 

The  European  Pillar  of  Social  Rights  is  the 
compass  for  upward  convergence  towards 
better  working  and  living  conditions  in  the 
EU.  This  Annex  provides  an  overview  of  Ireland’s 
progress in implementing the Pillar’s 20 principles 
and the EU headline and national targets for 2030 
on employment, skills and poverty reduction. 

for 

especially 

The  labour  market  continued  to  expand 
despite  sharp  rises  in  business  costs  and 
consumer prices.  In  2023,  the  employment  rate 
reached  79.1%,  well  above  the  EU  average,  and 
above  Ireland’s  2030  national  employment  target 
of  78.2%.  Labour  shortages  decreased,  however 
businesses  continue  to  struggle  with  hiring  skilled 
staff, 
technical  professions. 
According  to  the  Banking  &  Payments  Federation 
Ireland, 61% of Irish SMEs found it challenging to 
recruit  machine 
skilled 
tradespersons.  Extending  and  improving  the  offer 
of  vocational  education  and  training  (VET)  could 
help  address  labour  shortages.  The  sectors  with 
the  highest  rates  of  job  vacancies  in  2023 
included  scientific  and  technical  activities,  public 
administration  and  defence,  and  finance.  Irish 
women  are  now  more  highly  educated  than  their 
male  counterparts  and  the  female  employment 
rate is at a historical high. The gender employment 
gap  decreased  to  9.9  percentage  points  (pps)  in 
2023, below the EU average of 10.2pps. 

operators 

and 

While the system to upskill and reskill people 
is well-established, participation is relatively 
low.  Participation  in  adult  learning  over  the  past 
12  months  increased  to  48.3%  in  2022  and 
remained above the EU average (39.5%). However, 
considerable  efforts  will  be  required  to  reach  the 
2030  national  target  for  adult  learning  and 
training  of  64.2%  (see  table  A14.2).  Along  with 
persisting  labour  shortages  and  other  challenges, 
is  undermining 
in  upskilling 
low  participation 
its  economic 
Ireland’s  potential 
competitiveness. 
top 
the 
performers  in  digital  skills,  with  72.9%  of  people 
having  at  least  basic  digital  skills.  Although  the 
overall  labour  market  results  are  good,  active 
labour  market  policies  (ALMPs)  in  Ireland  have 
suffered from administrative challenges. These are 
linked  to  a  range  of  disincentives  to  participation, 
fragmented 
target 
groups  and  the  criteria  for  participation.  There  is 
scope  for  making  ALMPs  more  responsive  to  the 

legal  provisions,  different 

to 
Ireland 

is  among 

improve 

labour market and to reverse an over-emphasis on 
public 
and  work 
programmes, to the benefit of training courses for 
more specific skills. 

employment 

provision 

social 

exclusion 

remain 
Poverty  and 
challenges,  especially  for  vulnerable  groups. 
Among  those  most  affected  are  persons  with 
disabilities, Travellers and Roma, older people, and 
single  parents.  Indexing  welfare  payments  could 
help  Ireland  reach  the  national  2030  target  of  
90  000  fewer  people  at  risk  of  poverty  or  social 
exclusion (AROPE). 

Table A14.1:Social Scoreboard for Ireland 

Members  States  are  categorised  based  on  the  Social 
Scoreboard  according  to  a  methodology  agreed  with  the 
EMCO  and  SPC  Committees.  Please  consult  the  Annex  of  the 
Joint  Employment  Report  2024 
the 
methodology. 
Source: Eurostat. 

for  details  on 

The  AROPE  rate  of  persons  with  disabilities 
slightly  increased  in  2022,  to  39.5%,  and  is 
twice  as  high  as  for  the  total  population. 
While 
improved, 
Ireland  still 
the  highest  disability 
employment gap in the EU, at 37pps in 2022 (EU 
average:  21.4 pps) (124).  Persons  with  disabilities 

their  employment  situation 

recorded 

(124) As  mentioned  in  the  Joint  Employment  Report  2024,  the 
prevalence  of  disability  based on  the  GALI  concept  and  the 

59 

48.3472.98.59.94.179.14.31.1107.220.722.756.39373.919.12.6Critical situationTo watchWeak but improvingGood but to monitorOn averagePolicy areaHeadline indicatorEqual opportunities and access to the labour marketAdult participation in learning (during the last 12 months, excl. guided on the job training, % of the population aged 25-64, 2022)Early leavers from education and training(% of  the population aged 18-24, 2023)Share of individuals who have basic or above basic overall digital skills(% of the population aged 16-74, 2023)Young people not in employment, education or training(% of the population aged 15-29, 2023)Gender employment gap(percentage points, population aged 20-64, 2023)Income quintile ratio (S80/S20, 2022)Dynamic labour markets and fair working conditionsEmployment rate(% of the population aged 20-64, 2023)Unemployment rate(% of the active population aged 15-74, 2023)Long term unemployment(% of the active population aged 15-74, 2023)Gross disposable household income (GDHI) per capita growth(index, 2008=100, 2022)Social protection and inclusionAt risk of poverty or social exclusion (AROPE) rate (% of the total population, 2022)At risk of poverty or social exclusion (AROPE) rate for children(% of the population aged 0-17, 2022)Impact of social transfers (other than pensions) on poverty reduction(% reduction of AROP, 2022)Disability employment gap (percentage points, population aged 20-64, 2022)Housing cost overburden (% of the total population, 2022)Children aged less than 3 years in formal childcare (% of the under 3-years-old population, 2022)Self-reported unmet need for medical care (% of the population aged 16+, 2022)Better than averageBest performers 
 
 
 
  
 
 
 
 
 
is 

There 

ample 

evidence 

have  a  very  low  employment  rate  and  are  over-
represented in households with a low rate of work 
intensity. 
of 
discrimination  at  work,  and  the  jobs  available  to 
persons  with  disabilities  are  often  inadequate  to 
lift  them  out  of  poverty.  Fear  of  losing  the 
disability benefits frequently prevents people from 
entering  work (125).  Also,  persons  with  disabilities 
tend to have high rates of early school leaving and 
lower  levels  of  educational  attainment.  There  is 
also a high tertiary education gap  of 16.1pps (EU 
average:  11.3pps)  for  persons  with  disabilities  in 
the  30-34  age  group.  Supportive  policy 
interventions  for  more  inclusive  education,  and 
reinforcement  of  career  guidance  and  coaching, 
appear 
the  public 
employment services have reached out proactively 
to  clients  with  a  disability  to  raise  awareness  of 
the support that is available to them. The ESF+ co-
finances  the  Workability  Programme,  which  will 
support  5  000  persons  with  disabilities  to  enter 
education and employment in 2021-2027.  

important.  Since  2022, 

A  2022  census  confirmed  that  Roma  and 
Traveller  communities  remain  marginalised. 
The Travellers' employment rate was 18% and the 
unemployment  rate  61%  (vs  4.5%  overall),  while 
less  than  4%  had  finished  tertiary  education.  The 
employment rate of Roma stood at 61%, whereas 
their unemployment rate was at 17%. Almost two-
thirds  of  Traveller  families  live  in  social  housing 
and face discrimination in the private rental sector. 
Shortcomings in the implementation of the 2017-
2021  Traveller  and  Roma  Inclusion  strategy point 
to  a  need 
financing  and 
administrative  capacity  and  a  more  rigorous 
monitoring of the next strategy. 

increased 

for 

The  adequacy  of  pensions  has  deteriorated 
over recent years, especially for women.  The 
AROPE  rate  for  people  over  65,  which  is  a  key 
indicator  of  pension  adequacy,  increased  from 
21.3% in 2021 to 25.7% in 2022. The AROPE rate 
for  women  rose  to  30%,  a  7.3pps  increase  since 
2019.  The  reasons  why  women  often  do  not 
qualify  for  a  contributory  pension  include  long 
periods of unpaid domestic and care work. Gender 
inequalities  in  the  system  and  pension  adequacy 
therefore  remain  a  challenge.  Ireland  is  one  of 

disability  employment  gap  based  on  EU-SILC  data  are 
negatively correlated, (2022 Pearson correlation coefficient = 
-0.5). 

(125) European Human Rights Report – Issue 7 2023 

60 

three  countries  in  the  EU  that  do  not  have  a 
pension indexation system in place. 

The  employment  situation  and  poverty  risks 
of  single  parents  improved,  however  they 
remain outliers, both compared to other Irish 
households  and  to  the  rest  of  the  EU.  Their 
AROPE rate decreased significantly, from 57.7% to 
50.3  between  2021  and  2022.  This  might  be  the 
combined effect  of substantial  subsidies for early 
childhood  education  and  care  for  low-income 
single  parents,  and  because  more  of  them  are 
taking  up  work.  Still,  at  50.3%,  their  AROPE  rate 
was 2.5 times higher than for the total population. 
Ireland  recorded  the  highest  share  of  single 
parents  living  in  low  work-intensity  households  in 
the  EU.  There  is  significant  room  to  improve  the 
social protection of single parents. Maintaining the 
adequacy of welfare benefits as children grow, or 
as  single  parents  enter  employment, 
is  not 
sufficiently addressed at present. 

Childcare  attendance  increased  for  children 
below 3 years of age but is still far from the 
Barcelona  target  of  45%.  At  19.1%,  Ireland 
was well below the EU average of 35.9% in 2022. 
It  also  has  one  of  the  lowest  shares  of  poor 
children  below  three  in  childcare  in  the  EU,  which 
highlights  difficulties  for  some  children  to  access 
childcare,  hindering  their  parents’  participation  to 
the  labour  market  (see  also  Annex  15).  Measures 
in the 2024 national budget are expected to boost 
participation.  These  include  more  public  funding 
for the sector and increased subsidies for parents, 
and  an  ‘equal  participation  model’  focusing  on 
disadvantaged  families.  The  model  may  enable 
children  in  need  to  access  free  early  childhood 
education and care, as called for by the European 
Child Guarantee. 

Table A14.2:Situation of Ireland on 2030 
employment, skills and poverty reduction targets 

(1)  Adult  Education  Survey,  adults  in  learning  in  the  past  12 
months,  special  extraction  excl.  guided  on-the-job  training. 
(2)  Change  in  the  number  of  persons  at  risk  of  poverty  or 
social exclusion (AROPE), reference year 2019. 
Source: Eurostat, DG EMPL. 

IndicatorsLatest dataTrend            (2016-2023)2030 targetEU target 79.1(2023)48.3(2022)41(2022)Poverty reduction2 (thousands)-90-15 000Employment (%)78.278Adult learning1 (%)64.260 
 
 
     
 
Despite  an  increase  in  housing  supply  in 
2023,  the  country  continues  to  grapple  with 
a  housing  crisis  and  the  affordability  of 
housing  is a  concern.  In  2023,  32  500  housing 
units were completed,  an increase of 10% on the 
previous  year.  Almost  58  000  households  were 
assessed  as  needing  social  housing  support.  In 
addition,  over  59 000  households  that  could  not 
afford  their  rent  received  Housing  Assistance 
Payments, and around 11 400 social houses were 
delivered  in  2023.  The  situation  was  further 
aggravated  with  more  than  100  000  refugees 
arriving  from  Ukraine  by  February  2024 (126).  In 
March  2024,  a  record  of  almost  14  000  people 
were homeless, of which over 4 000 children. The 
situation worsened with the lift of the eviction ban 
in  April  2023,  affecting  children  and  one-parent 
families in particular. However, other factors must 
also  be  considered,  as  homelessness  had  been 
increasing since January 2022, even while the ban 
was  active  (although  the  rate  of  increase  slowed 
down,  and  child  homelessness  fell  during  the 
period).  Termination  of  the  rental  contract  is  one 
of  the  main  reasons  for  homelessness.  A  third  of 
the  population  depends  on  the  private  rental 
sector,  this  amid  a  6.7%  annual  increase  in  rents 
for  new  tenancies  since  the  end  of  2022,  which 
followed years of already significant rises in rents. 
The  housing  cost  overburden  rate  is  limited  but 
has  been  increasing.  Improving  tenants’  rights,  a 
ban  on  evictions  during  winter,  and  targeting 
support  on  the  most  vulnerable  (including  single-
parent  households)  may  prevent  the  crisis  from 
worsening.  The  Irish  recovery  and  resilience  plan 
envisages  reforms  to  increase  the  provision  of 
social and affordable housing. 

(126) Central Statistical Office Ireland,  Arrivals from Ukraine Series 

12 

61 

 
 
ANNEX 15: EDUCATION AND TRAINING 

This  Annex  outlines  the  main  challenges  of 
Ireland’s education and training system based 
on  the  2023  Education  and  Training  Monitor  and 
the  2022  OECD  Programme  for  International 
Student Assessment (PISA) results. 

a 

decrease 

Despite 
in  mathematics 
performance, quality and equity of education 
remain  high  in  Ireland.  The  2022  PISA (127) 
results  show  that  Ireland  ranks  above  the  EU 
average in reading, mathematics and science (see 
Table A15.1 and Graph A15.1). Underachievement 
in reading (11.4%)  has been among the lowest in 
the  EU  since  2012,  and  in  science  (15.6%)  it  is 
close  to  the  EU  2030  target.  In  mathematics, 
(19%),  it  somewhat  increased  since  2018  (by 
3.3 pps).  Ireland  has  one  of  the  smallest  socio-
economic  gaps  in  its  underachievement  rate  in 
mathematics  (23.9 pps  vs  EU  37.2 pps).  The 
difference 
in  the  underachievement  rates  of 
students  with  and  without  migrant  background  is 
not statistically significant. The proportion of top 

Graph A15.1: Underachievement rates by field, 
PISA 2012, 2018 and 2022 

Source: OECD (2023). 

performers in mathematics at 7.2% is close to the 
EU average, but the gender gap in favour of boys 
among  top  performers  in  mathematics  (4.9 pps) 
and  science  (4 pps)  is  comparatively  high.  Ireland 
continues  to  reform  its  curricula,  including  in 
mathematics. 

shortages  and 

retaining  new 
Teacher 
teachers  are  key  challenges.  While 
the 
profession is attractive to many young people, and 
in 2021, at 28.4%, the proportion of teachers aged 
25-34 was among the highest in the EU (15.8%), it 
has  shrunk  by  5.7 pps  since  2015.  Part-time  and 
temporary  contracts  are  a  disincentive  for  new 
teachers to stay in the profession, and experts call 

(127) OECD 

(2023), 

PISA 

2022 

Results 

(Volume 

I), 

for  urgent  measures  to  retain  new  teachers (128). 
Despite  the  increased  number  of  teachers (129), 
according to headteacher reports, in 2022, 67.8% 
(vs  53.4%  in  the  EU)  of  15-year-olds  attended 
schools  whose  capacity  to  provide  instruction 
could  be  hindered  by  the  lack  of  staff,  as 
compared with 44.8% in 2018 (130). Apart from the 
main  challenges  (high  accommodation  costs  and 
demographic issues), the demand for teachers has 
increased also due to the positive policy in school 
education  such  as  reduced  student-teacher  ratio 
requirements in disadvantaged schools. 

Substantial policy reforms in early childhood 
education  and  care  (ECEC)  are  well  under 
way.  Ireland  has  achieved  or  surpassed  the 
interim targets under First 5, the strategy for ECEC 
(2019-2028).  The  professionalisation  of  childcare 
workers  continues,  also  with  ESF+  support. 
Increased investments in 2024 aim to improve the 
affordability  of  ECEC  below  the  age  of  3  (see 
Annex  14).  The  results  of  a  pilot  on  hot  meals  in 
ECEC  settings  in  disadvantaged  areas  will  inform 
decisions  on  a  wider  support  scheme,  and  on  the 
best support for migrant families to improve their 
participation  in  formal  childcare.  Children  from 
non-English-speaking  immigrant  households  are 
less likely to be in informal and formal care (131). 

is 

The rate of early leavers from education and 
training 
low  but  remains  high  for 
vulnerable groups. The early school leaving rate 
at  4.0%  in  2023  is  among  the  lowest  in  the  EU. 
The rate, however, remains high among vulnerable 
groups,  including  people  with  disabilities (132)  and 
Travellers.  Ireland  continues  supporting  students 
with  special  needs.  In  2024,  it  plans  for  an 
additional  744  special  needs  teachers  and  1 216 

(128) Harford,  J.;  B.  Fleming.  (2023),  Teacher  supply  in  Ireland: 
crisis, 

anatomy 
of 
https://doi.org/10.1080/03323315.2023.2222709 

a 

(129) Department  of  Education  (2023),  Statistical  Bulletin  –  July 

2023, 
https://www.gov.ie/pdf/?file=https://assets.gov.ie/263000/f29
32136-6191-4e56-9af0-5b315e85702f.pdf#page=null  

(130) OECD 

(2023), 

PISA 

2022 

Results 

(Volume 

II),  

https://www.oecd-ilibrary.org/education/pisa-2022-results-
volume-ii_a97db61c-en 

(131) Sprong,  S.,  Stopek,  J.  (2023),  Differences  in  childcare  use 
between  Irish-born  and  immigrant  households  in  Ireland, 
https://www.esri.ie/publications/differences-in-childcare-use-
between-irish-born-and-immigrant-households-in-ireland 

https://doi.org/10.1787/53f23881-en. 

(132) EU-SILC UDB 2018, release 2020, version 1. 

62 

05101520253035IEEUIEEUIEEUMathematicsReadingScience%2012201820222030 EU target 
 
  
 
 
 
 
Table A15.1:EU-level targets and other contextual indicators under the European Education Area 
strategic framework 

Notes: b = break in time series; d = definition differs; e = estimated; p = provisional; u = low reliability; : = data not available. 
Source: 1,3,4,5,7,8,9,10,12 = Eurostat; 11= Eurostat, Adult Education Survey; 2,6 = OECD, PISA. 

in  mainstream  and 
special  needs  assistants 
special classes, and special schools. There are still 
needs  for  investment  in  new  mainstream  school 
buildings  given  demographic  projections,  and  in 
the upgrading of existing schools (133). 

The  tertiary  educational  attainment  rate  is 
the highest in the EU; progress on equity will 
be  important.  In  2023,  at  62.7%,  the  tertiary 
attainment rate was among the highest in the EU. 
While,  overall,  83%  of  graduates  are 
in 
employment  9 months  after  graduating,  the  rate 
for  graduates  with  disabilities  is  69%,  ranging 
from 57% to 74% depending on the nature of the 
disability (134).  Progress  assessment  on 
the 
national  access  plan  will  be  important  (review 
scheduled  for  2025).  Ireland  is  progressing  a 
policy  for  a  unified  tertiary  sector (135).  The  new 

(133) ESRI  (2024),  The  National  Development  Plan  in  2023: 
priorities and capacity, https://doi.org/10.26504/sustat123. 

(134) HEA  (2023),  Graduate  Outcomes  and  Disability  Report, 

https://hea.ie/2023/02/23/hea-publishes-graduate-
outcomes-and-disability-report/. 

joint  tertiary  degree  route  provides  a  transition 
from  further  education  to  higher  education, 
offering new pathways. Among various investment 
initiatives 
for 
Ireland 
technological  universities), 
allocated EUR 95 million to address pay shortfalls 
and the high student-staff ratio (22.8:1 in Ireland 
compared with 17:1 in the OECD) (136). 

(e.g.  human 

in  2024, 

capital, 

funds 

Ireland has an effective lifelong learning and 
upskilling  policy,  but  needs  are  high  in  the 
context  of  the  green  transition.  Starting  from 
a  very  low  base,  the  green  sector  is  growing 
strongly  (see  Annex  8),  but  new  skills  will  be 
needed  in  Ireland (137).  Supported  by  the  Recovery 
and  Resilience  Facility,  Ireland  enhances  learning 
for  sustainability  also  in  the  technological  sector 

announces-significant-policy-development-on-unified-
tertiary-sector/ 

(136) OECD 

at 
https://doi.org/10.1787/e13bef63-en 

Education 

(2023), 

a 

Glance 

2023,  

(135) Department  of  Further  and  Higher  Education,  Research, 
Innovation 
- 
Science 
https://www.gov.ie/en/press-release/9c968-minister-harris-

release 

press 

and 

(137) OECD 

(2023),  OECD 

Skills 

Strategy 

in 

Ireland, 

https://doi.org/10.1787/d7b8b40b-en 

63 

96%82.4%201391.8%2013100.0%92.2%96.4%202192.5%2021,dReading< 15%9.6% 18.0%11.8% 22.5%11.4%202226.2%2022Mathematics< 15%16.9% 22.1%15.7%22.9%19.0%202229.5%2022Science< 15%11.1% 16.8%17.0%22.3%15.6%202224.2%2022< 9 %9.9%12.6%5.0%10.5%4.0%9.5%Men12.0%14.5%6.1%12.1%5.1%11.3%Women7.8%10.6%3.9%8.7%2.9%u7.7%Cities8.0%b11.2%4.5%9.4%4.2%u8.6%Rural areas10.6%b14.0%5.2%11.0%3.5%u9.9%5By country of birthNative9.3%11.3%5.4%9.2%3.9%8.2%EU-born18.2%26.2%:u22.4%:u21.0%Non EU-born8.9%30.1%:u23.0%:u21.6%6Socio-economic gap (percentage points)26.3:20.729.523.9202237.220227Exposure of VET graduates to work-based learning≥ 60% (2025) ::: :39.2% 64.5%45%50.3%34.1%56.2%38.7%62.7%43.1%Men43.8%29.1%52.1%33.3%59.0%37.6%Women56.3%39.2%60.0%44.2%66.3%48.8%Cities56.6%b43.5%65.1%49.0%69.9%53.3%Rural areas43.0%b24.8%47.8%27.7%56.2%31.7%Native49.8%35.4%53.8%39.7%57.9%44.2%EU-born44.6%u29.3%52.1%36.7%52.5%40.2%Non EU-born61.7%24.2%68.7%31.0%76.7%37.1%11Participation in adult learning (age 25-64)≥ 47% (2025) ::46.0%201637.4%201648.3%202239.5%202213.6%201322.7%201312.8%23.8%12.3%202124.5%2021201220182023IndicatorTargetIrelandEU-27IrelandEU-27IrelandEU-271Participation in early childhood education (age 3+)2Low-achieving 15-year-olds in:Early leavers from education and training(age 18-24)3Total3By gender4By degree of urbanisationTertiary educational attainment (age 25-34)8Total8By gender9By degree of urbanisation10By country of birth12Share of school teachers (ISCED 1-3) who are 55 years or over 
 
 
 
 
  
 
to  equip  students  and  staff  with  the  necessary 
competences (138). 

(138) ‘N-TUTORR’ available at https://www.transforminglearning.ie/ 

64 

 
 
ANNEX 16: HEALTH AND HEALTH SYSTEMS 

A  healthy  population  and  an  effective, 
accessible  and  resilient  health  system  are 
prerequisites  for  a sustainable  economy and 
society.  This  Annex  provides  a  snapshot  of 
population health and the health system in Ireland. 

Life  expectancy  at  birth  in  Ireland  is  among 
the  highest  in  the  EU.  There  was  a  drop  in  life 
expectancy  between  2019  and  2021  due  to  the 
COVID-19  pandemic.  However,  life  expectancy 
rebounded  partly  in  2022  as  mortality  from 
COVID-19  declined (139). 
In  2021,  the  leading 
causes of death were cancer, and diseases of the 
circulatory  system 
(‘cardiovascular  diseases’), 
followed  by  diseases  of  the  respiratory  system. 
Mortality from preventable and treatable causes in 
Ireland  is  lower  than  in  most  other  EU  countries. 
However,  behavioural  risk  factors  such  as  obesity 
and excessive alcohol  consumption are significant 
public  health  concerns.  This  is  partly  reflected  in 
the above-average incidence of cancer in the Irish 
population,  although  age-standardised  mortality 
rates from cancer are close to the EU average. 

Graph A16.1: Life expectancy at birth, years 

Source: Eurostat. 

Health  spending  relative  to  GDP  in  Ireland 
decreased  in  2021  and  remained  below  the 
EU  average.  Between  2020  and  2021,  health 
spending  increased  in  nominal  terms  by  8%,  but 
as  a  proportion  of  GDP  health  spending  fell  from 
7.1% to 6.6%, compared to 10.9% in the EU as a 
whole. Provisional data suggest that in 2022 total 
healthcare  spending  fell  further  to  6.0%  of  GDP. 
However,  relative  to  modified  GNI,  a  more 
meaningful  measure  than  GDP  for  Ireland,  health 

(139) Based on data provided directly by Member States to the 

European Centre for Disease Prevention and Control, under 
the European Surveillance System. 

care, 

disease 

spending in 2021 remained high at 12.2% (140). Per 
capita spending on inpatient and long-term care is 
above  the  EU  average,  whereas  spending  on 
outpatient 
prevention, 
pharmaceuticals and medical devices is below the 
EU  average.  Although  household  out-of-pocket 
expenditure  accounts  for  a  lower-than-average 
fraction  of  health  expenditure,  payments  towards 
voluntary  health  insurance  represent  nearly  12% 
of total health spending, which is almost triple the 
EU  average.  This  is  because  almost  half  of  the 
population  has  private  health  insurance (141)  to 
bypass  the  long,  persistent  waiting  lists  in  the 
public  system  –  which,  in  turn,  creates  health 
inequalities,  as  poorer  patients  cannot  afford 
private  health  services.  The  share  of  total  health 
(77.4%) 
that  was  publicly  funded 
spending 
remained  below  the  EU  average  of  81.1%.  Public 
spending  on  health  is  projected  to  rise  by  1.5 
percentage  points  (pps)  of  GDP  by  2070  due  to 
population ageing, compared to 0.6 pps for the EU 
overall,  leading  to  fiscal  sustainability  challenges 
in the long term (see Graph 16.2 and Annex 21). 

In  2021,  spending  on  prevention  in  Ireland 
amounted  to  5.9%  of  total  spending  on 
healthcare,  similar  to  the  6.0%  for  the  EU 
overall.  Between  2019  and  2021,  spending  on 
disease  prevention  in  Ireland  more  than  doubled, 
in line with the trend across the EU. Proportionally, 
budget  shares  for  prevention  across  the  EU 
increased  most  for  emergency  response,  disease 
detection  and 
immunisation  programmes.  A 
worrying  development  from  a  public  health 
perspective 
the 
consumption  of  antibiotics  in  Ireland  –  up  30% 
from 2021 to 2022, to a level now exceeding the 
EU  average.  Under  the  Council  Recommendation 
on  stepping  up  EU  action to  combat  antimicrobial 
resistance  in  a  One  Health  approach (142),  the 
national  recommended  target  for  Ireland  is  to 
reduce total consumption of antibiotics by 27% by 
2030 compared to the 2019 level. 

the  marked 

increase 

in 

is 

(140) The amount of business done by multi-national firms in 
Ireland has a strong effect on its GDP and makes it less 
suitable as a basis for comparison. Modified gross national 
income (GNI*) can be used as an alternative indicator of the 
size of the domestic economy. 

(141) Houses of the Oireachtas (2022). Retrieved from 

https://data.oireachtas.ie/ie/oireachtas/libraryResearch/2022/
2022-12-15_bill-digest-health-insurance-amendment-bill-
2022_en.pdf, page 6. 

(142) https://eur-lex.europa.eu/legal-

content/EN/TXT/PDF/?uri=CELEX:32023H0622(01) 

65 

82.282.282.882.682.482.680.981.081.380.480.180.6201720182019202020212022IrelandEU 
 
   
 
 
 
 
Table A16.1:Key health indicators 

Note: The EU average is weighted for all indicators except for doctors and nurses per 1 000 population, for which the EU simple 
average is used. Doctors’ density data refer to practising doctors in all countries except Greece, Portugal (licensed to practise) and 
Slovakia  (professionally  active). Nurses’  density  data  refer  to  practising nurses  in  all  countries except  Ireland,  France,  Portugal, 
Slovakia (professionally active) and Greece (hospital only). 
Source: Eurostat Database; except: * OECD, ** Joint Questionnaire on non-monetary healthcare statistics, *** ECDC, **** Council 
Recommendation on stepping up EU actions to combat antimicrobial resistance in a One Health approach. 

Graph A16.2: Projected increase in public 
expenditure on healthcare over 2024-2070 

Baseline scenario. 
Source: European Commission / EPC (2024). 

this 

Despite 

population. 

There  are  long-standing  issues  of  doctor 
shortages  and 
long  waiting  times  for 
healthcare. Ireland continues to have a relatively 
high density of nurses, well above the EU average. 
With  a  significant  increase  in  doctor  density  over 
the  last  decade,  in  2021  Ireland  approached  the 
EU  average  number  of  practising  doctors  per 
positive 
1 000 
development  and  the  large  number  of  medical 
graduates  from  Irish  universities,  current  and 
projected shortages of doctors remain substantial, 
large 
including 
proportion  of  medical  graduates  are  international 
students  with  limited  options  for  completing  their 
postgraduate  practice  in  Ireland.  An  increasing 
number  of  early-career 
Irish-trained  doctors 
emigrate,  with  demanding  working  conditions  in 
Ireland  and  the  comparative  advantages  of 
in  other  English-speaking, 
practising  overseas 
high-income countries as key drivers. Although the 
number  of  patients  on  hospital  waiting  lists  for 
more  than  a  year  decreased  by  nearly  45% 
between  December  2020 and  December  2022,  in 

for  general  practitioners.  A 

January  2023  the  overall  number  of  patients  on 
waiting lists for hospital treatment remained over 
20% higher than in January 2020. To address this 
issue  the  government  formulated  a  new  Waiting 
List Action Plan in early 2023. 

in 

Ireland  allocated  approximately  8.2%  of  the 
resources  under  its  recovery  and  resilience 
plan  (RRP)  to  investments  and  reforms  in 
healthcare.  Ireland’s  RRP  features  a  set  of 
investments 
the  country’s  digital  health 
to  be 
infrastructure  worth  EUR 75 million, 
completed by the end of 2025. These investments 
include developing and setting up e-pharmacy and 
integrated  financial  management  systems  at 
national  level  to  improve  the  use  of  resources  in 
the  Irish  healthcare  system.  In  general,  such 
investments  may  help  Ireland  overcome  the  slow 
uptake of digital health solutions. For example, the 
number  of  individuals  accessing  personal  health 
records online in Ireland is below the EU average, 
indicating  that  Ireland  is  lagging  behind  in  the 
uptake  of  e-health  and  overall  health  systems 
digitalisation.  Through  its  RRP  Ireland  introduced 
the new Slàintecare Consultant Contract (143), from 
8 March  2023.  It  is  expected  to  gradually  phase 
out  private  practice  in  public  hospitals,  alleviate 
recruitment  difficulties,  and  reduce  inequalities  in 
access to care and inefficiency caused by the two-
tier  (public/private)  design  of  the  Irish  healthcare 
system. 

(143) Department  of  Health  (2022).  https://www.gov.ie/en/press-
release/33536-minister-for-health-announces-government-
approval-of-new-slaintecare-consultant-contract/. 

66 

6.64.10.61.502468EUIreland% of GDP20242070increase20182019202020212022EU average (latest year) Treatable mortality per 100 000 population (mortality avoidable through optimal quality healthcare)75.971.069.769.2NA93.3 (2021)Cancer mortality per 100 000 population262.1261.5255.5248.0NA235.4 (2021)Current expenditure on health, % GDP 6.96.77.16.66.010.9 (2021)Public share of health expenditure, % of current health expenditure74.074.378.077.4NA81.1 (2021)Spending on prevention, % of current health expenditure 2.62.73.25.95.96.0 (2021)Available hospital beds per 100 000 population297288289289NA525 (2021)Doctors per 1 000 population3.33.33.54.0NA4.1 (2021)*Nurses per 1 000 population12.913.3NA14.615.27.9 (2021)Total consumption of antibacterials for systemic use, daily defined dose per       1 000 inhabitants per day ***22.422.818.617.823.119.4 (2022) 
   
 
 
 
  
 
ANNEX 17: ECONOMIC AND SOCIAL PERFORMANCE AT REGIONAL LEVEL 

Annex 17 showcases the economic and social 
regional  dynamics  in  Ireland.  It  provides  an 
analysis  of  economic,  social  and 
territorial 
cohesion  in  Irish  regions  and  assesses  emerging 
investment  needs  to  foster  economic  growth, 
social  development  and  competitiveness  in  the 
country. 

of 
Overview 
performance at regional level  

economic 

and 

social 

in  the  EU,  yet 

Ireland  had  the  second  highest  GDP  per 
internal  regional 
capita 
disparities remain high. Ireland outperforms the 
EU  average  in  terms  of  GDP  per  capita  in 
purchasing  power  standard  by  a  significant 
in  2022.  However,  major 
margin,  at  235% 
disparities  become  apparent  at  the  NUTS  2  and 
NUTS  3  levels. While  the southern  region  had the 
highest  GDP  per  capita  level  at  286%  of  the  EU 
average  in  2022,  and  the  eastern  and  midland 
(EM)  region  at  247%,  the  northern  and  western 
(NW) region lagged far behind, at 83%.  

Graph A17.1: Average GDP per capita growth vs 
GDP per capita - Ireland 

Source: DG REGIO calculations based on JRC (ARDECO) and 
Eurostat data. 

Ireland benefited from high growth in 2012-
2022,  but  it  left  the  NW  region  lagging 
behind  the  other  two  regions.  All  regions 
experienced  rates  well  above  the  EU  average  of 
1.6%.  Yet,  the  figures  for  the  southern  and  EM 
regions  at  a  staggering  12.69%  and  7.16% 
respectively  outperformed  the  growth  of  just  5% 
in the NW region (Figure 1) (144). 

levels  of 

Wide  differences 
labour 
in 
productivity  across  Ireland’s  regions  persist 
(Figure 2) and largely explain the differences 
in  GDP  per  capita.  The southern  region  was  the 
most  productive  and  records  the  highest  real 
productivity  growth,  at  9.7%  on  average  between 
2012  and  2022  against  2%  for  the  NW  region. 
Labour productivity in the EM region grew by 3.6% 
in  the  same  period.  The differences  between  Irish 
regions  mirror  wide  differences  in  productivity 
levels between Irish firms and large multinational 
corporations.  Ireland  remains  dependent  on  the 
activities  of  a  limited  number  of  multinational 
corporations,  which  are  concentrated  in  certain 
counties  in  the  southern  and  EM  regions.  Lower 
productivity  levels  in  the  other  regions  and  lower 
growth  for  Irish  companies  throughout  the  whole 
country  have  contributed  to  growing  regional 
disparities. This is also demonstrated by the large 
differences  in  income.  The  median  household 
disposable  income  was  EUR  53  101  in  the  EM 
region,  EUR  42  690  in  the  southern  region,  and 
EUR 38 530 in the NW regions. It should be noted 
that income levels fell in all regions when adjusted 
for inflation (145). 

Regional  disparities  are  less  apparent  when 
it  comes  to  employment  indicators.  In  2023, 
the NW region’s employment rate of 78.7% stood 
slightly  higher  than  the  southern  region’s  rate  of 
77.9%,  whereas  the  EM  region's  rate  stood  at 
80%.  After  experiencing  a  slight  fall  during  the 
COVID-19  pandemic, 
regions 
experienced  a  rise  in  employment  levels.  The 
unemployment  rate  is  lower  than  the  EU  average 
(6.1%)  in  all  NUTS  2  regions,  displaying  no 
significant  regional  differences  in  unemployment 
rates  between  regions.  The  lowest  is  in  the  NW 
region,  at  3.8%  while  in  the  southern  and  EM 
regions, the unemployment rate stood at 4.2% and 
4.5% respectively.  

in  2023,  all 

Ireland has a mix of regions above and below 
in  terms  of  regional 
the  EU  average 
competitiveness,  displaying  an  innovation 
divide  between  regions.  According 
the 
Regional  Competitiveness  Index  2.0,  in  2022, 
Ireland with a score of 112.0 ranked above the EU 

to 

revision  corresponds 
intangible assets by multinationals to Ireland. 

the 

to 

relocation  of  preexisting 

(144) Note  that  in  2016,  the  Irish  statistical  institute  significantly 
revised  GDP  annual  growth  in  2015  from  7%  to  26%.  This 

(145) See  Survey  on  Income  and  Living  Conditions  (SILC)  2021, 
Income Survey on Income and Living Conditions (SILC) 2021 
- Central Statistics Office 

67 

 
 
 
 
 
 
 
 
Table A17.1:Selected indicators at regional level in Ireland 

Source: Eurostat, EDGAR database. 

(covering 

efficiency 

average  of  100 (146).  The  NW  region  had  the 
lowest score with 98.2, while the southern and EM 
regions  stood  at  105.1  and  121.7  points, 
respectively. The same variation is reflected in the 
more  advanced  sub-components  of  the  index,  i.e. 
the 
higher 
sub-index 
education, lifelong learning and the labour market) 
and  the  innovation  sub-index,  with  the  NW  region 
displaying a more moderate performance than the 
other two regions. This is also mirrored in a lower 
share of employment in high-technology sectors in 
the NW region compared to the two other regions 
(the  southern  and  EM  regions'  shares  stood  at 
9.8%  and  11.8%  respectively  while  the  NW 
regions' share stood at 5.8%). 

Ireland  significantly  exceeds the  average  EU 
greenhouse emissions per capita. In 2022, the 
NW  and  southern  regions  emitted  14.9  and  16.7 
tonnes  of  CO2  equivalent  per  capita,  and  the  EM 
region 8.3 tonnes (EU average 8 tonnes). 

Regional  differences  continue  to  persist  in 
accessibility  levels.  The  NW  region  is  less 
accessible, partly because of being less urbanised 
than the two other regions. In 2021, a resident of 
the  NW  region  could  reach  only  57.9%  of  the 
neighbouring  population  living  in  a  radius  of  120 
km  in  less  than  90  minutes,  whereas  this  figure 
was  91%  and  67.3%  for  the  EM  and  southern 
regions. 

Regional  disparities  are  also  reflected  in 
poverty levels. The NW region’s population is at-
higher-risk-of-poverty  and  social  exclusion  than 
the  other  regions.  In  2022,  25.3%  of  the  NW 
region’s  population  was  at-risk-of-poverty  and 

(146) EU Regional Competitiveness Index 2.0 2022 edition Revised 
May 2023 - https://ec.europa.eu/regional_policy/information-
sources/publications/working-papers/2023/eu-regional-
competitiveness-index-2-0-2022-edition_en.  

68 

social  exclusion  against  22.4%  in  the  southern 
region and 18% in the EM region. This also reflects 
the  existing  rural-urban  divide  in  Ireland,  where 
25.5%  of  the  rural  areas’  population  was  at-risk-
of-poverty  or  social  exclusion  in  2022,  against 
16.2%  in  cities.  Homelessness,  however,  remains 
largely an urban issue. Over 70% of people living 
in  crisis  accommodation  are  registered  in  the 
Dublin area (147). 

in 

Cohesion  policy  efforts 
Ireland  are 
concentrated on the NW region. As a transition 
region, it is receiving significantly higher funds  per 
capita  compared  with  the  other  two  regions. 
Equally,  significant  funding  under  the  PEACEPLUS 
programme and a small part of the Just Transition 
Fund are being implemented in the NW region.    

In  2013-2021, 

In contrast to the EU trend, where several EU 
to  experience  
countries  are  projected 
a  decline  in  their  population,  Ireland  is 
projected  to  see  a  population  growth  until 
2030 (148). 
Ireland  saw  a 
population growth with an average annual rate of 
10.4 per 1 000 inhabitants while the EU's average 
annual  rate  stood  at  only  1.9  per  1  000 
inhabitants.  This  positive  trend  is  particularly  true 
for  the  EM  region,  which  saw  the  greatest 
demographic growth (average annual rate of 13.0 
per  1  000  inhabitants)  in  the  country.  Ireland,  in 
comparison  with  other  EU  countries,  is  relatively 
youthful,  as  evidenced  by  the  fact  that  65.3%  of 
its  population  fell  within  the  15-64  age  range  in 

(147) Department  of  Housing,  Local  Government  and  Heritage 
(2023),  gov.ie  -  Homeless  Report  –  September  2023 
(www.gov.ie) 

(148) Commission report on ‘The impact of demographic change in 
Europe’,  accompanying  the  Commission  communication  on 
‘Harnessing  talent 
Inforegio  - 
Harnessing  Talent  in  Europe:  a  new  boost  for  EU  Regions 
(europa.eu). 

in  Europe’s 

regions’  - 

NUTS region nameGDP per head (PPS)Real productivity growthGDP growthPopulation growthAt-risk-of-poverty or social exclusionEmployment rate, ages 20-64Unemployment rateGreenhouse Gas EmissionsTransport performance by carEU27 = 100 (2022)Average % change on the preceding year, 2013-2022Average % change on the preceding year, 2013-2022Average annual change per 1000 residents, 2013-2021 (EU 2011-2022)% of population 2022% of population aged 20-64, 2023% of labour force, 2023Tons of CO2 equivalent per head, 2022Share of population in a 120-km radius that can be reached within 1h30 (%), 2021European Union (27 MS)1000.71.61.921.675.36.1877.2Ireland2355.79.0110.420.779.14.312.277.4Northern and Western105257.825.378.73.814.957.9Southern2869.712.697.922.477.94.216.767.3Eastern and Midland2473.67.161318804.58.391 
 
 
 
 
   
 
2022.  Especially  in  the  EM  region,  people  aged 
between  15  and  64  constitute  66.8%  of  the 
population  while  this  figure  stood  at  64.0  in  the 
southern region and at 63.3% in northern region.  

Investment  and  subnational  reform  needs 
ahead 

in 

investments 

Ireland 
Cohesion  policy 
support 
selected  areas  of  particular 
relevance for the green and digital transition 
and  for  social  convergence.   The  investment 
mix  focuses  on  strengthening  innovation  eco-
systems at the regional level in order to contribute 
to  reducing  the  innovation  gap  between  the  NW 
region and the other two regions. In the same vein, 
integrated  urban  development 
investments 
target  mainly  towns  and  settlements  in  order  to 
contribute to reducing disparities between Ireland’s 
metropolitan  areas  around  Dublin  and  Cork  and 
smaller towns and settlements.  

in 

investment  strategy  agreed 

The 
in  the 
programmes adopted in 2022 is still valid for 
the  current  economic  and  social  situation  in 
Ireland. Considering  recent  developments,  Ireland 
could put more emphasis on the social and labour 
market inclusion of vulnerable groups and on adult 
learning,  to  address  existing  skills  and  labour 
shortages. When  developing  new  project  calls, 
Ireland  could  explore  possibilities  to 
improve 
aspects  of  climate  mitigation  and  adaption  within 
the  existing  programme,  including  investments  in 
net-zero  technology  manufacturing.  Efforts  to 
ensure  that  stakeholders  at  regional  and  local 
the 
levels  continue 
investments  possibilities  under  the  programmes 
could be sustained. 

fully  embrace  all 

to 

Ireland  could  benefit  from  the  opportunities 
under  the  Strategic  Technologies  for  Europe 
Platform  initiative  to  boost  investments  in 
industry 
critical  technologies  to  support 
transformation.  

Support to regional innovation systems is at 
the  heart  of  EU  cohesion  policy  in  the  NW 
region and is instrumental to overcoming the 
development  lag  of  this  transition  region. 
However,  Irish  national  policies  will  be  key  to 
initiating  a  catching-up  process  in  the  transition 
region,  given  the  modest  size  of  EU  cohesion 
policy investments in Ireland. 

69 

 
MACROECONOMIC STABILITY 
ANNEX 18: KEY FINANCIAL SECTOR DEVELOPMENTS 

international 

In  recent  years,  Ireland  has  emerged  as  a 
significant 
financial  hub, 
particularly  for  investment  banks,  money-
market  funds,  and  investment  funds.  Irish 
financial  firms  fall  broadly  into  two  quite  distinct 
groups:  internationally-oriented  investment  banks, 
fund-management companies and insurance firms 
on one side, and retail banks serving the domestic 
market  on  the  other.  There  are  now  three 
domestically-owned  banks 
offering  banking 
services  in  the  Irish  retail  market.  Two  foreign-
owned banks, KBC Ireland and Ulster Bank Ireland, 
closed all their branches in 2023 and are winding 
down  their  operations  in  the  country.  Two  of  the 
three  remaining  retail  banks  are  still  part-owned 
by  the  government,  which  acquired  stakes  in  all 
three  of  them  during  the  Irish  banking  crisis, 
beginning  in  2009.  In  addition  to  the  traditional 
banks, there are also 218 credit unions that do not 
fall  under  EU  banking  regulation.  These  credit 
unions  provide  basic  banking  services  to  their 
members,  mainly 
loans  and  – 
increasingly  –  mortgages  and  small  business 
loans. The retail space is also served by non-bank 
lenders that do not take deposits but have become 
significant providers of credit to SMEs.  

consumer 

The retail banking sector has by now largely 
worked  out  the  legacy  non-performing  loan 
stock  left  over  from  the  financial  crisis.  The 
Irish  banking  crisis  of  2008-2012  left  Irish  banks 
burdened  with  a  large  stock  of  non-performing 
loans (NPLs). The retail banks’ NPL ratio peaked at 
31.9%  in  Q4  2014.  Since  then,  the  retail  banks 
have  worked  out  most  of  their  legacy  NPL  stock, 
mainly  through  portfolio  sales  and  securitisation. 
Their efforts have paid off, and their NPL ratio of 
2.4%  in  September  2023  is  now  close  to  the  EU 
average of 1.8%. The pandemic did not cause any 
setbacks  in  asset  quality,  as  government  grants 
for  households  and  businesses  supported  the 
solvency of borrowers (149). Nevertheless, the risks 
on banks’ balance sheets have increased since the 
pandemic,  as  evidenced  by  the  rise  in  loans 
classified  in the  Stage  2 (150).  The  current  number 

(149) The  Employment  Wage  Subsidy  Scheme  (which  ran  from 
September  2020 
to  May  2021)  provided  affected 
businesses with a subsidy covering their employees’ wages. 
It  succeeded  the  Temporary  Wage  Subsidy  Scheme  (which 
ran from March 2020 to August 2020). 

(150) According  to  the classification  by  the  International  Financial 
Reporting  Standards  9  (IFRS  9),  these  are  loans  the  credit 

70 

of  business  insolvencies  remains  benign  despite 
cyclical  headwinds.  Insolvencies  picked  up  from  a 
low  base  to  a  total  of  321  in  the  first  half  of 
2023,  compared  to  208  in  the  same  period  of 
2022,  but  they  remained  below  the  levels  seen 
before the pandemic. The share of corporate loans 
in the Stage 2 category of increased risks stood at 
to  24.0%  in  December  2023,  almost  unchanged 
from  a  year  earlier  (24.1%)  and  still  considerably 
above pre-pandemic levels (below 10%).  

Widening  lending  margins  have  boosted  net 
interest income and the profitability of retail 
banks.  The  retail  banks’  dependence  on  interest 
income had a negative impact on their profitability 
during  the  extended  period  of  low  interest  rates. 
The  general  uptick  in  rates  since  2022  has  thus 
been  very  advantageous  for  banks,  which  raised 
their  lending  rates  while  deposit  rates  remained 
contained.  Meanwhile,  the  liquidity  position  of 
banks  has  remained  strong,  supported  by  the 
steady  availability  of  deposits.  Net  fee  and 
income  have  also  grown,  while 
commission 
operating costs have risen at a much slower pace, 
despite  rising  staff  expenses.  Return  on  equity 
reached  13.9% 
in  the  year  to 
(annualised) 
September 2023, which is the best performance in 
more  than  a  decade,  up  from  7.0%  in  2022. 
Despite  these  positive  developments,  uncertainty 
remains  over  the  sustainability  of  this  level  of 
profitability, given the potential pressure for higher 
deposit  rates  and  the  potential  for  adverse  credit 
outcomes. High operating costs remain a structural 
drag on profitability.  

Investment  banks  account  for  about  half  of 
Irish  banking  assets  and  cater  mainly  to 
international  clients  from  their  Irish  base. 
Ireland  has  become  an  international  hub  for 
investment  banking  services,  after  some  globally 
acting investment banks chose Ireland as their EU 
base  after  the  UK  left  the  EU.  The  combined 
assets  of  the  three  largest  investment  banks  in 
Ireland amounted to EUR 351 billion at the end of 
2023, up strongly from EUR 32 billion at year-end 
2015.  These  banks  provide  services  to  their 
corporate  clients  across  the  EU.  As  they  serve 
mainly  international  customers,  these  investment 

quality of which has been judged to have deteriorated since 
the loan was initially made. 

 
 
 
 
 
 
 
Table A18.1:Financial Soundness Indicators 

(1) Last data: Q3 2023. 
(2) Data is annualized. 
(3) Data available for EA countries only, EU average refers to EA area. 
Source: ECB, Eurostat. 

banks  are  less  impacted  by  Ireland’s  domestic 
economy. 

Irish  businesses  have  sustained  robust 
performance,  with  strong  turnover  and 
profitability 
indicators.  Non-financial  firms’ 
resilience is supported by their low amount of debt 
owed  to  domestic  banks,  with  this  debt  sharply 
declining  since  the  global  financial  crisis.  Nearly 
half  of  SMEs  have  no  financial  debts.  Loan 
delinquencies  have  not  increased  significantly  in 
recent  years  in  spite  of  the  weak  economic 
situation  elsewhere 
in  Europe.  However,  the 
possibility  of  moderating  aggregate  demand  and 
wage-growth  pressures  loom,  posing  a  potential 
threat.  

The  commercial  real  estate  (CRE)  lending 
segment  poses  risks,  due  to  structural  and 
cyclical factors. The CRE sector is facing weaker 
demand  for  office  and  retail  space  due  to  both 
cyclical  headwinds  and  significant  structural 
changes, especially after the pandemic. The sector 
must  also  cope  with  higher  costs  arising  from 
inflation  and  more  stringent  requirements  on  the 
energy  efficiency  of  buildings.  Meanwhile,  CRE 
interest 
to 
borrowers  are  set 
payments.  All  these  factors  have  led  to  a  fall  in 
CRE  prices  (a  20%  decrease  since  the  pandemic). 
However, the Irish retail banks’ exposure to CRE is 
not  particularly  large  compared  to  EU  peers. 
Property  funds,  with  a  strong  presence  of 
international investors, hold more than one third of 
domestic  investible  CRE.  Because  of  this,  the 

face  higher 

71 

of 

Ireland 

Central  Bank 
macroprudential  measures 
property 
funds 
resilience to CRE shocks. 

for 
to  strengthen 

has 

introduced 
Irish-domiciled 
the  system’s 

The  household  sector  remains  resilient,  as 
inflation  declines  and  a  tight  labour  market 
supports  wage  growth,  but  rising  interest 
rates  are  straining  budgets, 
increasing 
vulnerability  in  some  segments.  There  is  little 
evidence of a widespread decline in the repayment 
capacity  of  borrowers.  The  impact  of  monetary-
policy  tightening  has  been  limited  due  to  the 
large-scale use in recent years of mortgages with 
interest rates that are fixed for a period of years. 
Nevertheless,  the  impact  of  increasing  interest 
rates 
in  certain 
susceptible segments, and a significant number of 
that  additional 
borrowers  express  concerns 
increments  in  debt  repayment  instalments  would 
strain  their  financial  resources  and  make  their 
loans unaffordable. 

is  becoming  more  visible 

significantly 

Credit  growth  remains  relatively  modest, 
displaying divergent trends across segments. 
Following  a  strong  recovery  after  the  pandemic, 
credit  growth  to  the  non-financial  private  sector 
has 
large 
enterprises  and  SMEs,  as  credit  conditions  have 
tightened.  However,  lending  for  house  purchases 
and  other  household  credit  has  accelerated  in 
recent months and is driving overall credit growth. 
Mortgage credit growth has so far remained high, 
relying  on  a  strong  residential  real  estate  (RRE) 

reduced,  both 

for 

2017201820192020202120222023EUMedianTotal assets of the banking sector (% of GDP)352.6336.5351.3369.4326.2309.9302.6257.0184.6Total assets of the banking sector (% of GNI*)573.0565.6595.1683.2607.0574.5-Share (total assets) of the five largest banks (%)45.546.149.755.760.065.6--69.6Share (total assets) of domestic credit institutions (%)151.248.644.440.744.340.940.8-62.9NFC credit growth (year-on-year % change)1.23.92.38.423.115.52.5-2.4HH credit growth (year-on-year % change)-1.5-0.80.1-1.5-1.6-1.21.8-1.4Financial soundness indicators:1        - non-performing loans (% of total loans)9.95.53.43.42.41.71.51.81.8- capital adequacy ratio (%)25.225.424.925.425.524.524.719.620.1- return on equity (%)25.04.93.7-2.24.53.39.49.913.2Cost-to-income ratio (%)164.566.170.971.573.459.750.652.844.9Loan-to-deposit ratio (%)195.390.291.583.972.774.680.293.380.2Central bank liquidity as % of liabilities1.80.70.41.33.90.30.1-0.7Private sector debt (% of GDP)248.5230.2209.5190.3168.1147.1-133.0118.4Private sector debt (% of GNI*)403.8386.9354.9351.9312.8272.7Long-term interest rate spread versus Bund (basis points)48.455.558.445.043.760.343.2107.7104.2Market funding ratio (%)81.181.383.385.288.088.2-50.839.8Green bonds outstanding to all bonds (%)3---1.21.61.92.64.02.71-34-1011-1718-2425-27Colours indicate performance ranking among 27 EU Member States. 
 
  
 
market.  Although  RRE  price  growth  has  slowed 
significantly in recent months, contrary to the CRE 
market, price falls in the residential sector have so 
far not been recorded. In the future, higher interest 
rates  should  weaken  mortgage  demand,  with 
negative  implications  for  house  price  growth. 
Nevertheless, 
imbalance 
between housing supply and demand may support 
current house prices. 

long-standing 

the 

Ireland  has  become  an  important  hub  for 
insurance  companies  that  hold  relevant 
market shares in other EU countries. The large 
majority  of  Irish  insurers  are  subsidiaries  of 
international  groups  and  are  mainly  focused  on 
cross-border  business.  Less 
than  30%  of 
premiums  by  value  written  by  Irish  insurance 
companies  cover  Irish-based  risk.  Despite  rising 
interest  rates  and  high  inflation,  the  solvency 
position of the Irish insurance sector has remained 
stable.  However,  a  decrease  in  economic  activity 
may  reduce  demand  for  insurance,  and  tighter 
credit  conditions  could  impact  the  value  of  bond 
investments.  

Ireland  also  hosts  a  large  and  complex 
market-based  finance  (MBF)  sector,  which  is 
mostly  externally  oriented,  but  its  linkages 
with  the  Irish  economy  have  been  growing. 
The  MBF  market,  dominated  by  investment  funds 
and  money-market  funds,  reached  a  total  asset 
value of EUR 5.4 trillion in Q2-2023. Even though 
the  MBF  sector’s  linkages  to  households  and 
domestic  banks  are  limited,  there  are  some 
exceptions  that  include  property  funds  which 
invest  in  CRE  in  Ireland  and  some  non-bank 
lenders  which  provide  credit  to  SMEs  in  Ireland. 
Moreover, the very large size of the sector (about 
20 
the  possible  systemic 
implications of this, warrant  close monitoring. The 
measures taken by the central bank to strengthen 
oversight  of  the  MBF  sector  and  the  leading  role 
that  Irish  authorities  have  taken  in  developing 
macroprudential  frameworks  and  tools  aimed  at 
addressing  systemic  risks  arising  from  non-bank 
financial intermediaries are noteworthy (151).  

times  GNI)  and 

(151) The  measures 

the  undergoing  work  on 
macroprudential policies for the MBF sector can be found in 
Macro-prudential Policy | Central Bank of Ireland. 

taken  and 

72 

 
 
ANNEX 19: TAXATION 

This  annex  provides  an 
indicator-based 
overview  of  Ireland’s  tax  system.  It  includes 
information on the tax structure (the types of tax 
that Ireland derives most of its revenue from), the 
tax  burden  on  workers,  and  the  progressivity  and 
redistributive  effect  of  the  tax  system.  It  also 
provides 
tax  collection  and 
compliance,  and  on  the  risks  of  aggressive  tax 
planning (ATP) activity. 

information  on 

The  Irish  tax  base  is  relatively  narrow  and 
reliant  on  corporate  taxes  from  foreign-
owned  enterprises.  Foreign-owned  enterprises 
contribute more than two thirds of Ireland’s Gross 
Value  Added.  Corporate  tax  revenue  reached 
EUR 23.8 billion  in  2023,  another  all-time  high. 
However, its growth (+5.3% relative to 2022) has 
been more modest than in previous years. This has 
been  largely  in  line  with  overall  tax  revenue 
growth  (+6%).  The  Irish  economy  shrank  by  3.2% 
in  2023  on  the  back  of  a  global  economic 
slowdown  and  higher  interest  rates.  This  has 
contributed  to 
the  parallel  slowing-down  of 
corporate tax revenue increases. At the same time, 
the average forward-looking effective tax rates on 

Table A19.1:Taxation indicators 

corporate  income  were  6.6 pps  below  the  EU 
average  in  2022.  The  level  of  revenue  from 
environmental  taxation  is  below  the  EU  average. 
Pollution  and  resources  taxes  account  for  only 
0.3%  of  environmental  taxes.  There  is  therefore 
potential  to  strengthen  the  application  of  the 
‘polluter  pays’  principle. 
Ireland  has  only 
implemented  two  of  the  six  main  types  of 
pollution  and  resources  taxes  (i.e.  taxes  on  waste 
landfilling and plastic products). There is still scope 
to  expand  waste  disposal 
(including 
incineration)  and  implement  the  four  other  types 
(i.e. taxes on NOx emissions, waste discharge into 
water, fertilisers and pesticides). 

taxes 

royalty  payments. 

imposed  on  outbound 

Ireland has reformed its laws on withholding 
interest, 
taxes 
dividends  and 
The 
Commission  has  long  asked  Ireland  to  prevent 
ATP.A19.1  Outbound  payments 
remain  very 
important  for  the  Irish  economy  (Graph  A19.2).  In 
particular,  Ireland  has  higher  outbound  royalty 
payments  than  the  rest  of  the  EU  combined. 
Following  Ireland’s  Recovery  and  Resilience  Plan 
(RRP), new legislation against tax-free transfers of 

(1) Forward-looking Effective Tax Rate (OECD). 
(2) A higher value indicates stronger redistributive impact of taxation. 
(*) EU-27 simple average. 
(**) Forecast value for 2022, if available. For more details on the VAT gap, see European Commission, Directorate-General for 
Taxation and Customs Union, VAT gap in the EU - 2023 report, https://data.europa.eu/doi/10.2778/911698. For more data on tax 
revenues as well as the methodology applied, see the Data on Taxation webpage, https://data.europa.eu/doi/10.2778/911698. For 
more data on tax revenues as well as the methodology applied, see the Data on Taxation webpage, 
https://ec.europa.eu/taxation_customs/taxation-1/economic-analysis-taxation/data-taxation_en. 
Source: European Commission and OECD. 

73 

IE2010202020212022202320102020202120222023Total taxes (including compulsory actual social contributions) (% of GDP)27.819.820.720.937.940.040.440.2Total taxes (including compulsory actual social contributions) (% of GNI*)36.036.638.538.7Labour taxes (as % of GDP)12.28.78.78.720.021.320.720.3Labour taxes (as % of GNI*)15.816.216.316.1Consumption taxes (as % of GDP)9.95.65.95.510.810.711.211.0Consumption taxes (as % of GNI*)12.810.411.110.2Capital taxes (as % of GDP)5.75.46.16.77.18.08.68.9Capital taxes (as % of GNI*)7.410.011.312.5Of which, on income of corporations (as % of GDP)2.43.23.64.52.42.53.03.4Of which, on income of corporations (as % of GNI*)3.15.96.68.4Total property taxes (as % of GDP)1.40.91.10.91.92.32.22.1Total property taxes (as % of GNI*)1.81.62.01.7Recurrent taxes on immovable property (as % of GDP)0.80.30.40.41.11.21.11.0Recurrent taxes on immovable property (as % of GNI*)1.00.60.70.8Environmental taxes as % of GDP2.51.21.10.92.42.22.32.0Environmental taxes as % of GNI*3.22.22.11.6Tax wedge at 50% of average wage (Single person) (*)16.322.322.822.722.733.931.732.131.831.7Tax wedge at 100% of average wage (Single person) (*)30.935.235.935.635.141.040.139.940.040.2Corporate income tax - effective average tax rates (1) (*)12.412.412.419.519.019.0Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)20.514.916.615.78.68.18.27.9Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)9.46.340.935.5VAT Gap (% of VAT total tax liability, VTTL)(**)10.912.76.79.75.4Tax structureProgressivity & fairnessTax administration & complianceIrelandEU-27 
 
 
 
      
 
Graph A19.1: Tax wedge for single and second 
earners as a % of total labour costs, 2023 

profits  to  non-EU  countries  via  interest,  royalty 
and  dividend  payments  has  been  in  effect  since 
April  2024.  This  ensures  that  outbound  payments 
to  certain  jurisdictions  are  subject  to  withholding 
tax.  Those  countries  include  EU-blacklisted  non-
cooperative jurisdictions in tax matters as well as 
zero-  and  no-tax  jurisdictions.  However,  bilateral 
agreements  allow  for  derogation  from  the  new 
legislation.  Where 
this  happens,  additional 
monitoring will prevent non-taxation. Moreover, no 
low-tax  jurisdictions  (those  where  CIT  rates  are 
between zero and 9% (152) are included in the new 
legislation.  

the  calculation 

More reforms were part of Ireland’s RRP with 
the aim of broadening the country’s tax base 
and  bringing  its  revenue-to-GDP  ratio  closer 
to  the  EU  average.  Those  reforms  include 
changing  corporate  residence  rules  in  2013,  or 
amending 
for  capital 
allowances for intangible assets (CAIA), which has 
been  implemented  through  the  Finance  Act  2020. 
In  the  field  of  environmental  taxation,  the  RRP 
includes  a  measure  to  increase  the  carbon  tax 
steadily  by  EUR 7.5 per  ton  of  carbon  used  yearly 
until  2025.  Ireland’s  long-term  carbon  tax  policy 
provides for increases scheduled until 2030. 

rules 

A legislative package enacted by both Ireland 
and the US has gradually made it possible to 
tackle  ATP.  First,  Ireland  removed  the  ‘double 
in  2013  and  2014.  Those 
Irish’  structures 
structures  had  been  used  by  US-based  MNEs  to 
shelter  profits  from  taxation.  Second,  the  US  in 
2017  enacted  the  Tax  Cuts  and  Jobs  Act  (the 
introduced  a 
income 
TCJA),  which 
category 
(GILTI).  This 
intangible  assets 
for 
legislation created a strong incentive for US-based 
MNEs 
low-tax 
jurisdictions  and  tax  havens  all  over  the  world 
back  to  the  US.  This  has  resulted  in  a  significant 
change  since  2020  in  the  destination  of  these 
royalty payments with the vast majority now going 
directly to the US where they are subject to tax.  

repatriate  patents 

low-taxed 

from 

to 

(152) In the EU Hungary has the lowest CIT rate (9%). 

74 

The second earner tax wedge assumes a first earner at 100% 
of the average wage and no children. For the methodology of 
the  tax  wedge  for  second  earners,  see  OECD,  2016,  Taxing 
Wages 2014-2015. 
Source: European Commission. 

Ireland’s  labour  tax  burden  is  very  low,  but 
labour  taxation  is  more  progressive.  Ireland’s 
share of labour taxes in overall tax revenue is not 
even  half  the  EU  average  and  the  lowest  of  all 
Member  States  (Table  A19.1).  The  labour  tax 
wedge for Ireland in 2023 was considerably below 
the EU average for average and lower wage levels 
(see Graph A19.1). Also, second earners at 67% of 
the  average  wage,  whose  spouses  earn  the 
average wage, were subject to a lower tax wedge 
than  the  EU  average.  However,  they  were  taxed 
more heavily than single people at the same wage 
level.  The  difference  between  the  tax  wedge  for 
high-  and  low-wage  earners  (167%  and  50%  of 
the  average  wage)  was  among  the  largest  in  the 
EU,  indicating  the  high progressivity  of the labour 
tax  system.  The  tax-benefit  system’s  ability  to 
reduce income inequality as measured by the Gini 
coefficient was significantly above the EU average 
(see  Table A19.1)  and  the  highest  of  all  Member 
States. 

Ireland’s 

the  digitalisation  of 

Further progress has been achieved in terms 
of 
tax 
administration.  The  2022  annual  report  on 
taxation shows that Ireland scores highly on filing 
tax with 100% and 97% of corporate income and 
personal  income  tax  returns  respectively  being 
filed electronically. Ireland’s VAT gap (an indicator 
of  the  effectiveness  of  VAT  enforcement  and 
compliance,  where  a  low  gap  indicates  high 
effectiveness)  decreased  to  6.7%  in  2021  (partly 
due to COVID effects) but remained above the EU-
wide gap of 5.4%. 

22.726.035.143.535.52025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - IESingle earner - EU averageSecond earner -  IESecond earner -  EU average 
 
       
 
Graph A19.2: Outbound foreign direct investment (FDI) income payments from Ireland and the rest of the 
EU-27 relative to the size of their economies (in % of GDP and GNI, left) and in absolute terms (EUR 
billions, right), 2022 

Source: CSO data, European Commission. 

75 

0%5%10%15%20%25%30%35%40%45%50%RoyaltiesDividendsInterestsEU26 as % GDPIE as % of GDPIE as % of GNI*0100200300400500600RoyaltiesDividendsInterests€ billionEU26IE 
      
ANNEX 20: TABLE WITH ECONOMIC AND FINANCIAL INDICATORS 

Table A20.1:Key economic and financial indicators 

(1) domestic banking groups and stand-alone banks, EU and non-EU foreign-controlled subsidiaries and EU and non-EU foreign-
controlled branches. 
(2) NIIP excluding direct investment and portfolio equity shares. 
Source: Eurostat and ECB as of 2024-5-17, where available; European Commission for forecast figures (Spring forecast 2024). 

76 

2004-072008-122013-2020212022202320242025Real GDP (y-o-y)5.7-1.49.115.19.4-3.21.23.6Potential growth (y-o-y).-0.29.54.35.04.33.63.3Private consumption (y-o-y)6.0-1.41.28.59.43.12.33.1Public consumption (y-o-y)4.4-1.45.26.64.51.91.10.8Gross fixed capital formation (y-o-y)8.3-6.222.3-40.45.12.91.52.4Exports of goods and services (y-o-y)6.71.814.015.113.9-4.82.55.2Imports of goods and services (y-o-y) 8.2-0.514.7-7.515.90.43.04.6Contribution to GDP growth:Domestic demand (y-o-y)5.6-2.66.7-14.04.01.61.11.5Inventories (y-o-y)0.00.00.30.51.01.00.00.0Net exports (y-o-y)-0.32.01.128.63.7-6.90.42.3Contribution to potential GDP growth:Total Labour (hours) (y-o-y).-1.61.91.12.32.41.51.1Capital accumulation (y-o-y).0.83.7-0.5-0.3-0.2-0.2-0.1Total factor productivity (y-o-y).0.73.83.73.02.22.32.3Output gap2.3-2.9-0.54.69.11.2-1.1-0.8Unemployment rate4.813.07.76.24.54.34.44.4GDP deflator (y-o-y)2.0-0.91.90.56.63.02.61.9Harmonised index of consumer prices (HICP, y-o-y)2.50.60.22.48.15.21.91.8HICP excluding energy and unprocessed food (y-o-y)2.10.00.51.65.05.12.92.1Nominal compensation per employee (y-o-y)5.30.62.72.62.72.74.44.1Labour productivity (real, hours worked, y-o-y)2.42.97.28.00.8-6.8-0.51.3Unit labour costs (ULC, whole economy, y-o-y)3.8-1.3-3.7-5.50.111.84.82.0Real unit labour costs (y-o-y)1.7-0.3-5.5-5.9-6.18.62.10.1Real effective exchange rate (ULC, y-o-y)2.7-3.4-5.3-5.6-3.64.90.2-0.4Real effective exchange rate (HICP, y-o-y)1.6-2.0-1.10.1-4.32.3..Net savings rate of households (net saving as percentage of net disposable income)1.47.76.315.77.7...Private credit flow, consolidated (% of GDP)30.77.0-5.21.92.0...Private sector debt, consolidated (% of GDP)177.0260.3248.9168.1147.1...of which household debt, consolidated (% of GDP)85.7107.650.329.725.5...of which non-financial corporate debt, consolidated (% of GDP)91.3152.8198.5138.4121.6...Gross non-performing debt (% of total debt instruments and total loans and advances) (1)..8.12.11.5...Corporations, net lending (+) or net borrowing (-) (% of GDP)2.38.1-9.410.48.14.73.83.9Corporations, gross operating surplus (% of GDP)33.933.952.360.062.057.957.257.4Households, net lending (+) or net borrowing (-) (% of GDP)-8.52.32.24.71.82.12.22.1Deflated house price index (y-o-y)8.4-13.37.24.25.0-3.3..Residential investment (% of GDP)12.33.92.02.02.42.7..Current account balance (% of GDP), balance of payments-3.9-3.4-2.813.710.89.99.19.5Trade balance (% of GDP), balance of payments10.415.019.340.139.933.5..Terms of trade of goods and services (y-o-y)-1.1-0.70.0-1.50.5-0.4-0.1-0.1Capital account balance (% of GDP)0.20.1-6.20.3-0.2-1.9..Net international investment position (% of GDP)-31.4-120.3-177.5-130.9-116.8-105.9..NENDI - NIIP excluding non-defaultable instruments (% of GDP) (2)1.3-224.9-276.1-323.4-234.0-286.0..IIP liabilities excluding non-defaultable instruments (% of GDP) (2)950.91385.01364.81407.81136.71218.1..Export performance vs. advanced countries (% change over 5 years)..49.946.236.626.7..Export market share, goods and services (y-o-y)-2.8-4.014.1-3.7-4.7-5.8-1.01.4Net FDI flows (% of GDP)11.2-4.0-13.211.76.40.5..General government balance (% of GDP)1.5-15.0-1.6-1.51.71.71.31.2Structural budget balance (% of GDP)..-1.2-3.9-3.01.01.81.6General government gross debt (% of GDP)25.484.171.554.444.443.742.541.3forecast 
 
 
 
  
 
 
ANNEX 21: DEBT SUSTAINABILITY ANALYSIS 

This  annex  assesses  fiscal  sustainability 
risks for Ireland over the short, medium and 
long  term. 
It  follows  the  multi-dimensional 
approach  of  the  European  Commission’s  2023 
Debt Sustainability Monitor, updated based on the 
Commission 2024 spring forecast. 

1  –  Short-term  risks  to  fiscal  sustainability 
low.  The  Commission’s  early-detection 
are 
indicator  (S0)  does  not  point  to  any  major  short-
term  fiscal  risks  (Table A21.2) (153).  Government 
gross financing needs are expected to remain low 
in the short term at around 2% of GDP on average 
over  2023-2024 
Irish 
sovereign  debt  maintains 
its  positive  market 
presence and investor confidence. All major rating 
agencies have positive rating or outlook on Ireland.  

(Table A21.1, Table 1). 

2  –  Medium-term  fiscal  sustainability  risks 
appear low.   

The DSA baseline shows that the government 
debt-to-GDP  ratio  is  projected  to  continue 
declining  over  the  medium  term,  to  around 
17%  of  GDP  in  2034.    (Graph 1,  Table  1) (154). 
The  debt  reduction  is  supported  by  the  assumed 
structural  primary  surplus  (excluding  changes  of 
cost  of  ageing)  of  2.5%  of  GDP.  This  appears 
plausible 
fiscal 
performance (155).  The  debt  decline  also  benefits 

compared 

past 

with 

(153) The  S0  is  a  composite  indicator  of  short-term  risk  of  fiscal 
stress.  It  is  based  on  a  wide  range  of  fiscal  and  financial-
competitiveness  indicators  that  have  proven  to  be  a  good 
predictor of emerging fiscal stress in the past.  

(154) The  assumptions  underlying  the  Commission’s  ‘no-fiscal 
policy  change’  baseline  include  in  particular:  (i)  a  structural 
primary  surplus,  before  ageing  costs,  of  2.5%  of  GDP  from 
2024  onwards;  (ii)  inflation  converging  linearly  towards  the 
10-year  forward  inflation-linked  swap  rate  10  years  ahead 
(which refers to the 10-year inflation expectations 10 years 
ahead);  (iii)  the  nominal  short-  and  long-term  interest  rates 
on new and rolled over debt converging linearly from current 
values to market-based forward nominal rates by T+10; (iv) 
real  GDP  growth  rates  from  the  Commission  2024  spring 
forecast,  followed  by  the  EPC/OGWG  ‘T+10  methodology 
projections  between  T+3  and  T+10  (average  of  2.9%);  (v) 
ageing costs in line with the 2024 Ageing Report (European 
Commission, 
Institutional  Paper  279,  April  2024).  For 
information  on  the  methodology,  see  the  2023  Debt 
Sustainability Monitor. 

(155) This  assessment  is  based  on  the  consolidation  space 
indicator, which measures the frequency with which a tighter 
fiscal  position  than  assumed  in  a  given  scenario  has  been 
observed  in  the  past.  Technically,  this  consists of  looking  at 
the  percentile  rank  of  the  projected  SPB  within  the 
distribution  of  SPBs  observed  in  the  past  in  the  country, 
taking into account all available data from 1980 to 2022. 

from  a  still  favourable  but  decreasing  snowball 
effect  of  1.0%  of  GDP  annually  on  average  over 
2025-2034.  Government  gross  financing  needs 
are  expected  to  remain  low  over  the  projection 
period at 1.5% of GDP on average.  

four 

The  baseline  projections  are  stress-tested 
against 
deterministic 
alternative 
scenarios to assess the impact of changes in 
key  assumptions  relative  to  the  baseline 
(Graph 1).  Under  the  historical  structural  primary 
balance  (SPB)  scenario  (i.e.  the  SPB  returns  to  its 
historical  15-year  average  of  -2.0%  of  GDP)  the 
debt ratio would be higher than under the baseline 
by  about  34  pps.  of  GDP  in  2034,  though  still 
below  60%  of  GDP.  Under  the  adverse  interest-
growth  rate  differential  scenario  (i.e.  the  interest-
growth  rate  deteriorates  by  1  pp.  of  GDP 
compared with the baseline), the debt ratio would 
be  somewhat  higher  than  under  the  baseline  by 
around  2  pps.  in  2034.  Under  the  financial  stress 
scenario (i.e. interest rates temporarily increase by 
1 pp. compared with the baseline) the government 
debt ratio would be broadly unchanged compared 
with the baseline in 2034. Finally, under the lower 
structural  primary  balance  scenario 
the 
projected cumulative improvement in the SPB over 
2023-2024  is  halved),  the  debt  ratio  would  be 
slightly higher than under the baseline by about 4 
pps. in 2034. 

(i.e. 

to 

plausible 

The  stochastic  projections  indicate  low  risk, 
pointing  to  a  limited  sensitivity  of  these 
projections 
unforeseen 
events (156). These stochastic simulations indicate 
a 20% probability that the debt ratio will be higher 
in 2028 than in 2023, implying low risks given the 
the  uncertainty 
low 
Though, 
surrounding  the  baseline  debt  projections 
is 
medium, as 80% of the simulated debt paths lie in 
a  wide  range  of  36  pps.  in  five  years’  time 
(Graph 2).  

level. 

debt 

3  –  Long-term  fiscal  sustainability  risks 
appear  overall  medium.  This  assessment  is 
based  on  the  combination  of  two  fiscal  gap 
indicators,  capturing  the  required  fiscal  effort  to 
stabilise  debt  (S2  indicator)  and  bring  to  60%  of 

(156) The stochastic projections show the joint impact on debt of 
2000 different shocks affecting the government’s budgetary 
position, economic growth, interest rates and exchange rates. 
This  covers  80%  of  all  the  simulated  debt  paths  and 
therefore excludes tail events. 

77 

 
 
 
 
 
the 

negative 

non-residents 

higher  interest  rates,  a  relatively  large  share  of 
short-term public debt as well as public debt held 
by 
net 
and 
international 
investment  position,  though  this 
largely reflects the presence of multinationals and 
the  International  Financial  Services  Centre (158). 
Finally,  alternative  metrics  to  GDP  suggest  higher 
fiscal  sustainability  risks. On  the  other  hand,  risk-
stable 
include 
mitigating 
financing  sources  (with  a  diversified  and  large 
investor base), the currency denomination of debt, 
and historically still low borrowing costs.  

relatively 

factors 

GDP  (S1  indicator)  over  the  long-term (157).  This 
assessment  is  mainly  driven  by  the  projected 
increasing  ageing  costs  and  the  favourable  initial 
budgetary position. 

The  S2  indicator  points  to  medium  fiscal 
sustainability  risks.  The  indicator  shows  that, 
relative  to  the  baseline,  the  SPB  would  need  to 
increase by 2.2 pps. of GDP in 2025 to ensure debt 
stabilisation  over  the  long  term.  This  result  is 
driven by the projected increase in ageing-related 
costs  (contribution  of  4.5  pps.  of  GDP),  which  is 
initial 
only  partly  offset  by  the  favourable 
budgetary  position  (-2.3  pp.  pps.  of  GDP).  In 
particular,  the  projected 
in  pension 
expenditure  (contribution  of  2.6  pps.  of  GDP),  but 
also  of  health-care  and  long-term  care  spending 
(+1.3 pps. and +1.1 pps. of GDP respectively) drive 
these  results  (Table A21.1,  Table  2).  Hence,  while 
several  investments  and  reforms  in  the  RRP 
contribute to supporting the efficiency of the Irish 
health  care  system,  additional  measures  may  be 
required  to  further  improve  the  efficiency  and 
fiscal  sustainability  of  the  Irish  long-term  care 
system. 

increase 

indicator  points  to 

The  S1 
low  fiscal 
sustainability risks. The indicator shows that the 
country  would  not  need  to  improve  its  fiscal 
position to bring its debt to 60% of GDP by 2070. 
This  result  is  mainly  driven  by  the  projected 
spending 
increase 
(contribution  of  3.1  pps.  of  GDP),  that  is  fully 
offset by the favourable initial budgetary position 
(-2.8 pps. of GDP) and the current distance of the 
government  debt  ratio  from  the  60%  reference 
value (-0.4 pp. of GDP) (Table A21.1, Table 2).  

age-related 

public 

in 

4  –  Finally,  several  additional  risk  factors 
need to be considered in the assessment.  On 
include 
the  one  hand,  risk-increasing  factors 

(157)The  S2 

indicator  measures 

fiscal  sustainability 

the 
permanent  SPB  adjustment  in  2024  that  would  be  required 
to stabilise public debt in the long term. It is complemented 
by  the  S1  indicator,  which  measures  the  permanent  SPB 
adjustment in 2024 to bring the debt ratio to 60% by 2070. 
For  both  the  S1  and  S2  indicators,  the  risk  assessment 
depends on the amount of fiscal consolidation needed: ‘high 
risk’ if the required effort exceeds 6 % of GDP, ‘medium risk’ 
if it is between 2% and 6% of GDP, and ‘low risk’ if the effort 
is  negative  or  below  2%  of  GDP.  The  overall  long-term  risk 
classification  combines  the  risk  categories  derived  from  S1 
and S2. S1 may notch up the risk category derived from S2 if 
it  signals  a  higher  risk  than  S2.  See  the  2023  Debt 
Sustainability Monitor for further details. 

(158) The  thresholds  used  for  the  fiscal  sustainability 

risk 
classification  can  be  found  in  Table  A1.3  on  pp.125  of  the 
2023 Debt Sustainability Monitor. 

78 

 
 
 
Table A21.1:Debt sustainability analysis - Ireland 

Source: Commission services. 

Table A21.2:Heat map of fiscal sustainability risks - Ireland 

(1) Debt level in 2034. Green: below 60% of GDP. Yellow: between 60% and 90%. Red: above 90%. (2) The debt peak year 
indicates whether debt is projected to increase overall over the next decade. Green: debt peaks early. Yellow: peak towards the 
middle of the projection period. Red: late peak. (3) Fiscal consolidation space measures the share of past fiscal positions in the 
country that were more stringent than the one assumed in the baseline. Green: high value, i.e. the assumed fiscal position is 
plausible by historical standards and leaves room for corrective measures if needed. Yellow: intermediate. Red: low. (4) Probability 
of debt ratio exceeding in 2028 its 2023 level. Green: low probability. Yellow: intermediate. Red: high (also reflecting the initial 
debt level). (5) the difference between the 90th and 10th percentiles measures uncertainty, based on the debt distribution under 
10000 different shocks. Green, yellow and red cells indicate increasing uncertainty. (For further details on the Commission's 
multidimensional approach, see the 2023 Debt Sustainability Monitor) 
Source: European Commission (for further details on the Commission's multidimensional approach, see the 2023 Debt 
Sustainability Monitor). 

79 

BaselineHistorical SPBLower SPBAdverse 'r-g'Financial stressOverallLOWLOWLOWLOWLOWLOWDebt level (2034), % GDP17.250.921.119.217.4Debt peak year20242034202420242024Fiscal consolidation space34%70%36%34%34%Probability of debt ratio exceeding in 2028 its 2023 level20%Difference between 90th and 10th percentiles (pps. GDP)36.2Short termMedium term - Debt sustainability analysis (DSA)Long termOverall                               (S0)Overall Deterministic scenariosStochastic projectionsS2S1Overall(S1 + S2)LOWLOWMEDIUMLOWMEDIUMTable 1. Baseline debt projections20212022202320242025202620272028202920302031203220332034Gross debt ratio (% of GDP)54.444.443.742.541.337.734.331.028.125.422.920.818.917.2Changes in the ratio-3.7-10.0-0.7-1.2-1.2-3.5-3.5-3.3-2.9-2.7-2.4-2.1-1.9-1.7of whichPrimary deficit0.8-2.4-2.3-1.9-2.0-2.0-2.0-2.0-1.9-1.8-1.7-1.5-1.4-1.3Snowball effect-7.1-7.10.8-0.9-1.5-1.6-1.5-1.3-1.0-0.9-0.7-0.6-0.5-0.4Stock-flow adjustments2.7-0.50.81.62.20.00.00.00.00.00.00.00.00.0Gross financing needs (% of GDP)5.72.51.82.63.52.21.61.51.41.01.21.21.10.5S1S2Overall index  (pps. of GDP)0.02.2of which Initial budgetary position-2.8-2.3Debt requirement-0.4Ageing costs3.14.5of which    Pensions2.02.6     Health care0.91.3     Long-term care0.71.1Education-0.4-0.5Table 2. Breakdown of the S1 and S2 sustainability gap indicators010203040506020212022202320242025202620272028202920302031203220332034Graph 1. Deterministic debt projections Historical SPB scenarioLower SPB scenarioFinancial stress scenarioAdverse 'r-g' scenarioBaseline% of GDPp10p20p40p60p80p90010203040506020212022202320242025202620272028% of GDPGraph 2. Stochastic debt projections 2024-2028MedianBaseline