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Factsheet for case LU-2020-51/1661 Updated – measures in Luxembourg

Extension of temporary State contribution to uncovered costs of companies

Extension des mesures de soutien aux entreprises dans le cadre de la pandémie de COVID-1

Country Luxembourg , applies nationwide
Time period Temporary, 19 December 2020 – 30 June 2021
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Roland Maas
Case created 06 January 2021 (updated 07 May 2021)

Background information

In order to cushion the direct and indirect economic repercussions of the new restrictive measures within the context of the pandemic, the government has decided to extend the benefit of the State's temporary contribution to the uncovered costs of certain companies provided for by the Law of 19 December 2020 to companies in the in-store retail sector and similar sectors, such as the personal care sector.

Legal framework: Law of 19 December 2020 having as object the setting up of a temporary State contribution to the uncovered costs of certain companies (Loi du 19 décembre 2020 ayant pour objet la mise en place d’une contribution temporaire de l’État aux coûts non couverts de certaines entreprises, Mémorial A 1036 du 21/12/2020. and the Law of 24 December 2020 amending the law of 17 July 2020 on measures to combat the Covid-19 pandemic and the law of 19 December 2020 having as object the setting up of a temporary State contribution to the uncovered costs of certain undertakings (Loi du 24 décembre 2020 modifiant 1° la loi modifiée du 17 juillet 2020 sur les mesures de lutte contre la pandémie Covid-19 ; 2° la loi modifiée du 19 décembre 2020 ayant pour objet la mise en place d’une contribution temporaire de l’État aux coûts non couverts de certaines entreprises. Mémorial A 1082 du 24/12/2020)

Content of measure

The "uncovered costs" can be determined as the difference between total income, subsidies for the compensation of the partially unemployed, other public aid and insurance benefits received and the amount corresponding to 75% of operating costs. By way of derogation from the above, an amount corresponding to 100% of operating costs will be taken into account if the enterprise has been subject to a closure obligation. The maximum aid intensity will be 70% of the "uncovered costs" for medium and large enterprises and 90% of the uncovered costs for micro and small enterprises, but the total amount of aid may not exceed €20,000 for a micro enterprise, €100 000 for a small enterprise and €200,000 for a medium or large enterprise. The concerned sectors are: sectors of tourism, catering, events, culture, entertainment, continuing vocational training organisations, companies in the in-store retail sector and similar sectors, such as the personal care sector

Updates

The following updates to this measure have been made after it came into effect.

12 February 2021

On February 12, 2021, the Council of Government approved an extension of the State's temporary contribution to the uncovered costs, put in place by the law of 19 December 2020.The measure has been extended until June, 30 2021.

Use of measure

Until 1st March 2021, 713 non refundable eligible applications has been processed and €11,963,694 were transferred.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

Unknown.

Views and reactions

No information.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      P - Education P85 Education
      Q - Human Health And Social Work Activities Q87 Residential care activities
      Q88 Social work activities without accommodation
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R91 Libraries, archives, museums and other cultural activities
      R92 Gambling and betting activities
      S - Other Service Activities S95 Repair of computers and personal and household goods

This case is not occupation-specific.

Sources

  • 05 January 2021: Adaptation des mesures de soutien aux entreprises dans le cadre de la pandémie de COVID-1 (meco.gouvernement.lu)
  • 12 February 2021: Élargissement et renforcement des mesures de soutien aux entreprises touchées par la pandémie de COVID-19 (meco.gouvernement.lu)
  • 01 March 2021: Etat des lieux au 1er Mars 2021 des aides accordées (meco.gouvernement.lu)

Citation

Eurofound (2021), Extension of temporary State contribution to uncovered costs of companies, case LU-2020-51/1661 (measures in Luxembourg), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.