Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LU-2021-14/1797 – Updated – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Temporary, 02 April 2021 – 31 December 2021|
|Context||COVID-19, Green Transition, Digital Transformation|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
|Author||Patrick Thill (LISER) and Eurofound|
|Measure added||29 March 2021 (updated 25 January 2022)|
This instrument aims to encourage companies to carry out economic development, digitalisation or environmental protection projects despite the current crisis, with the financial aid of up to 50% of eligible costs. The existing measure has been extended until the end of 2021, and the amount of aid significantly increased. The Ministry of the Economic set up the investment aid for companies affected by the crisis COVID-19 in the government's "Neistart" programme. Legal reference: Law of July 24, 2020 aiming at the stimulating of investments (Loi du 24 juillet 2020 visant à stimuler les investissements des entreprises dans l’ère du COVID-19, Mémorial A 640 du 24/07/2020).
The revamped aid offers higher amounts than in regular times, especially for projects involving the circular economy's development. Initially scheduled to expire on 30 June 2021, this investment aid will be extended until the end of the year.
The aid scheme is aimed at companies that have suffered a significant drop in turnover during the crisis and provides for three types of aid:
Under the old scheme, 207 such applications have already been approved by my services, for a total amount of aid of €62 million.
Until 22 September 2021, 257 applications were eligible and processed with an total amount of €76,761,187.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2021), Extension of aid scheme to stimulate investment in the COVID-19 era and increased aid amount, measure LU-2021-14/1797 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2021-14_1797.html
30 January 2023
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12 September 2022
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This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.