The combined financial toll of the Covid-19 pandemic and the war in Ukraine has reached €5.6 billion, ministers disclosed in a detailed response to a parliamentary question.
In response to a parliamentary question from MP André Bauler of the Democratic Party (DP), Minister of Finance Gilles Roth and Minister of the Economy Lex Delles provided detailed insights into the financial impact of the Covid-19 pandemic and the war in Ukraine on the State budget.
Bauler had enquired about the total expenditure incurred by the State in combating the Covid-19 pandemic and supporting various economic sectors during the crisis.
According to the ministers, the government spent a total of €3.7 billion on pandemic-related measures. This figure includes €976 million in business aid, such as advances on short-time working, which has since been repaid. As a result, the net impact on the State budget amounts to €2.7 billion over the past five years. Of this, €566 million was allocated specifically to managing and directly combating the pandemic.
During the crisis, nearly €3 billion was spent to support businesses. For instance, short-time working alone accounted for €1.2 billion, while family-related leave cost €305 million.
Bauler also sought details on the financial impact of the war in Ukraine. The ministers revealed that the State has allocated €246 million for military aid and €208 million for humanitarian aid and refugee support. As the Russian war of aggression enters its fourth year on 24 February, the conflict has also indirectly strained the State budget. Notably, €2.9 billion was spent to finance four packages of measures developed in collaboration with social partners to mitigate the effects of rising energy prices.
