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John Baker
State Aid to businesses rises, Sovereign Wealth fund shows small return and Xavier Bettel criticises Israel
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The Ministry of Economy presented its annual state aid for businesses report for 2025 revealing a rise to €440 million in 2025

The Ministry of Economy presented its annual state aid for businesses report for 2025 on Monday morning, revealing an increase in both the volume of aid granted and the number of applications received.

During a Monday morning press conference, Economy Minister Lex Delles presented the Economcy ministry's annual report on granted state aid in 2025, revealing that Luxembourg companies received €440 million in state aid last year, an increase of €170 million compared to the previous year. The number of applications has also risen noticeably, climbing from 1,800 to 2,300 in the space of twelve months. The vast majority of aid granted, some 96%, was directed at small and medium-sized enterprises. The figures do not include other forms of state participation in companies. Overall, state aid in Luxembourg amounts to approximately 0.97% of GDP, placing the country slightly below the EU average.

To illustrate the tangible impact of the aid, Economy Minister Lex Delles pointed to the electrification of industrial processes as a case in point. Just six projects, supported by €100 million in state aid, are expected to save 270,000 tonnes of CO2 over ten years, the equivalent of taking 27,000 cars off the road.

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Around 230 Skyliners employees to benefit from new collective agreement

  • Skyliners has signed its first collective agreement with the LCGB and OGBL, introducing improved leave, bonus, and working-time provisions for around 230 employees.
  • The new agreement came into force on 1 May 2026 and is largely based on collective agreements from the construction sector, with adaptations reflecting the company's specific circumstances.

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