Luxembourg will only receive small fraction of the EU support package called ‘NextGenerationEU’. €83 million out of €720 billion will be given to the Grand Duchy. The aid came about during the pandemic and has been designed as a means to help EU member states increase their resilience and relaunch their economy.
According to EU commissioner Nicolas Schmit, it is a good sign that Luxembourg only receives a small portion of the funds as the country made it through the health crisis better than other EU member states.
He further noted that the Grand Duchy will still benefit from the rest of the money as it will be used to strengthen the economies of surrounding countries on which Luxembourg depends. NextGenerationEU will bring the necessary stability, argued Schmit.
Luxembourg will invest the aids into traineeships to reinforce its labour market, into transportation projects, and into sustainable and affordable housing. One example is the future residential district ‘NeiSchmeltz’ in Dudelange, which is created with the help of a zero-emission concept. €18 million of the EU funds will be invested into the project that is hoped to house 2,300 people one day.
The National Employment Agency (ADEM) has been using the EU money to finance two projects. One is about renewing digital tools, the other focused on retraining workers during the pandemic. The latter project, called ‘Future Skills’, used €1.5 million.
Overall, Luxembourg will invest two thirds of the EU funds to support the country’s energy transition.
