Ireland is in line to get €2.5 billion in funding from the EU towards the cost of the Covid-19 Temporary Wages Subsidy Scheme.

The money will come from SURE, a €100bn fund set up by the EU to help member states meet the cost of supporting employment through the Covid-19 pandemic.

Ireland, among other member states, submitted an application for funding to cover some of the cost of the Temporary Wage Subsidy Scheme, which has since been succeeded by the Employment Wages Subsidy Scheme.

In a statement, the European Commission said it had presented a proposal to the European Council to grant the €2.5bn sought to Ireland under SURE.

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However the Council must still approve the proposal, which it is thought likely it will do. The money will then be provided by way of a low-cost loan next year.

€17bn was recently lent to Italy, Spain and Poland through the SURE scheme.

It is understood the maturity of the loans can run to between 15 and 25 years.

More than €90bn of the €100bn fund has now been proposed by the Commission.

The European Commission has successfully carried out two issuances of so-called eurobonds in recent weeks to finance the instrument.

Legislative change was necessary here in Ireland to allow the state to access the funding and that process is now complete.

Meanwhile, the European Commission is expected to come forward with plans for a €5bn Brexit fund for member states most affected by Britain's withdrawal from the EU.

The so-called Brexit Adjustment Reserve was agreed as part of the EU's seven-year budget, which was concluded during negotiations between the European Parliament, the Commission and member states last week.

Ireland is one of a number of countries, including France, Belgium, Denmark and the Netherlands, hoping to secure a significant share of the fund.

Additional reporting: Tony Connelly