Windsor Framework & Northern Ireland Protocol Overview
New funds are a mitigant to excess CT risk
Government intends to establish two new funds in the new year
Future Ireland Fund (FIF)
Infrastructure, Climate and Nature Fund (ICNF)
▸ The FIF will be a long-term savings fund which intends to
contribute to exchequer expenditures in the decades to
come (e.g., population ageing, the digital and climate
transitions).
▸ The intention is for 0.8% of GDP (c. €4-6bn per annum) to
be transferred to the FIF each year out to 2035.
▸ To start, €4bn of €6bn in the National Reserve Fund (NRF,
or Rainy Day Fund) will be transferred into FIF.
In time, the Government suggest as much as €100bn could
reside in the FIF.
▸ The Funds are to be managed and controlled within the
NTMA.
The ICNF's mandate is to help the state meet its
considerable infrastructure and green climate needs.
▸ In the past, Ireland has fallen into the trap of cutting capital
investment in downturns. This fund will act as a reserve to
be drawn on for capital expenditure if a downturn arises.
▸ To start the fund off, the remaining €2bn in the NRF will be
transferred into the ICNF. From 2025 onwards, €2bn a year
will be transferred into the ICNF from the Exchequer until it
reaches its maximum size of €14bn.
▸ There will be clear rules in place on how the money can be
accessed.
▸ A portion of the ICNF (c. €3bn) can be drawn down if
needed to help meet climate and nature targets.
Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta
National Treasury Management Agency
Source: Budget 2024
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