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-2022-14/2277 – Updated – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Open ended, started on 31 March 2022|
|Context||War in Ukraine, Green Transition|
Promoting the economic, labour market and social recovery
– Responses to inflation
|Author||Patrick Thill (LISER) and Eurofound|
|Measure added||15 May 2022 (updated 06 September 2022)|
In the framework of the Tripartite meeting of 22, 23 and 30 March 2022 on the impact of the war in Ukraine on costs, the Government undertakes to put in place new aids, both in the short term for companies heavily impacted by the rise in energy prices, and in the short and medium term to support companies in the energy transition and decarbonisation of their activities, in accordance with the European rules on state aid.
This scheme supports companies that qualify as high energy consumers (whose purchases of energy products account for at least 3% of their production value/turnover) in the industrial, craft and commercial sector.
The coverage will be between 30% and 70% of the additional cost exceeding the doubling of natural gas and electricity prices. In concrete terms, if a price has risen from €10 to €22 per Kilo Watt hour (KWh), between 30 and 70% of the €2 in excess of 20, i.e. two times 10, will be covered.
Companies whose energy purchases represent at least 3% of their production value/turnover are eligible. Discussions are underway to decide which one it will be.
The aid will go beyond the 30% of the extra cost, exceeding a doubling for companies making a loss and whose eligible costs are at least equivalent to 50% of that loss. They can be from industry, craft or commerce.
The bill will have to be validated by the EU in the coming weeks before it can be implemented.
The cumulative cost of all measures amounts to €827 million, spread over the budget years 2022 and 2023.
Not applicable yet.
|Does not apply to workers||
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Consultation through tripartite or bipartite social dialogue bodies|
Social partners' role in the implementation, monitoring and assessment phase:
This decision was taken in the framework of the Tripartite meeting held on 22, 23 and 30 March 2022.
Approval by two trade unions: Confédération luxembourgeoise des syndicats chrétiens (LCGB) and Confédération Générale de la Fonction Publique (CGFP), as well as by Union des Entreprises Luxembourgeoises (UEL).
Eurofound (2022), Subsidy for costs of electricity and gas for high-energy intensive companies, measure LU-2022-14/2277 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2022-14_2277.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.