On Tuesday, 24 November, the European Commission authorised a Luxembourg aid scheme to support the uncovered fixed costs of companies affected by the coronavirus pandemic.
The scheme was approved under the State Aid Temporary Framework.
The European Commission has already approved eight Luxembourg State aid schemes in the context of coronavirus.
This time, Luxembourg plans to provide economic assistance to certain businesses—specifically those operating in the hospitality, accommodation, and entertainment sectors—in order to help them cope with liquidity shortages.
The public aid will take the form of direct grants. The measure will enable the Luxembourg authorities to support companies that have recorded a monthly decline in turnover of at least 40% during the period from November 2020 to March 2021 compared with the same period in 2019. It will provide them aid of up to 70% of their fixed costs that are not covered by revenues (90% in the case of microenterprises and small enterprises), up to a maximum of €1 million per undertaking. (Original version in French by Lionel Changeur)