The Government approved a move to Level of Ambition 2 (LOA2), as recommended by the Commission on the Defence Forces in July, 2022. As part of that decision, the Government committed to increasing the funding allocated to defence to €1.5 billion (at January 2022 prices) by 2028, to be agreed through the annual Estimates process.
To date, this has delivered a funding increase of €400 million (35%) to the Defence Vote Group since the Government approved the Commission Report.
Budget 2026 will allocate €1.5 billion to the Defence Vote Group, representing a €157m (15%) increase on the corresponding 2025 allocation.
Capital Investment in Defence primarily provides for the renewal, retention and acquisition of major defence equipment and infrastructural platforms, expenditure which enhances and supports military capabilities and therefore contributes to a more secure and resilient society.
The revised NDP Capital allocation for the Defence Vote Group for the period 2026-2030 is €1.7 billion. This represents an increase of €600 million (55%) on the previous baseline of €1,100 million. The 2026 capital allocation will increase by €85 million (40%) to €300 million, the highest ever capital allocation.
The revised capital allocations will assist ongoing efforts at modernising and upgrading Defence equipment and built infrastructure platforms, and will enable targeted progression on key elements of Government commitments within LOA 2 (Enhanced Capability) objectives, as outlined in the Commission on the Defence Forces Report.
This increased level of defence capital funding will be utilised effectively to address long-standing capability gaps, modernise core infrastructure needs and ensure that Ireland delivers on its defence responsibilities and international commitments over the coming years.
In terms of Radar capability, which includes land, sea and air elements, the programme of work is ongoing and good progress has been made across all elements, particularly the C-UAS element. A small handful of countries were invited to meet with the team to discuss our requirements, with a view to assessing options for delivery and finalising this phase of the Programme before the end of this year. A subsequent phase of this programme of work will look at costal radar
Full delivery of the Programme will be complex; but has been prioritised with a target date of 2028. That being said, elements of this capability will be rolled out in phases, starting in 2026, towards full delivery by the end of 2028.
As you are aware, I made an announcement in June regarding the award of a contract to a French provider for towed sonar capability. This type of sonar, is the first of its kind in Ireland, and it will be used for monitoring and surveillance in the subsea domain. The new sonar capability will be used on Irish Naval vessels to monitor activities in the Irish Exclusive Economic Zone (EEZ) and, in particular, in the vicinity of subsea communication cables or gas pipelines thus significantly enhancing maritime security.
This new acquisition will enhance awareness below the surface, contributing to the overall maritime picture available to Naval Service and the wider Defence Forces. This is a complex project and a new capability, so work in training personnel and establishing the procedures and structures required within the Defence Forces has commenced, and will continue in the period up to the delivery and operationalisation of the system.
In terms of Level of Ambition 3 (LOA 3) the Commission recognised that any proposal to move to LOA3 could only be considered in the context of a step-up, in the first instance, to LOA2.