Economy & Politics

Luxembourg puts “5% of its GDP” on the table

The restart pact, announced Wednesday by the Prime Minister, was detailed by the Minister of Finance. An additional plan of “700 to 800 million euros” dedicated to allowing everyone to “play the game of liquidity”.

The restart pact, announced Wednesday by the Prime Minister, was detailed by the Minister of Finance. An additional plan of “700 to 800 million euros” dedicated to allowing everyone to “play the game of liquidity”.

Validated in the morning by the Council of Government, announced at the start of the afternoon by the Prime Minister and detailed in the evening by the Minister of Finance. The government’s communication mechanism now seems well oiled, like what should be the “restart pact” of the economy, explained Wednesday evening.

Presented as “a progressive response” to the most affected sectors, this package of additional measures is intended to be “a generous solution to the severe recession in our country,” says Pierre Gramega (DP). And the latter to resume the range of “700 to 800 million euros” advanced a few hours earlier by Xavier Bettel (DP), while specifying that this restart pact, associated with that of stabilization, represented “5% of GDP ” Or more than double that of Belgium (2%) or France (2%) and of the same order as Germany (4.6%).

Let everyone play the game of cash

Wideness made possible not only by “the relatively healthy state of public finances before the crisis” but also by “the good results of the financial sector”, according to the tenant of the ministry of the rue de la Congrégation. Banks and insurance companies presented as “part of the solution, unlike 2008 when they were part of the problem”.

Based on three priorities – “maintaining jobs, supporting the most affected sectors and encouraging sustainable economic recovery” – these new measures must result in households and businesses “playing the game of liquidity” by allowing everyone to pay their bills. To do this, Pierre Gramegna announced Wednesday the creation of a recovery and solidarity fund.

50 euros voucher for residents and cross-border residents

Aimed at Horeca, tourism, events and fitness companies which remain closed to this day, this new device offers the possibility of support, for a period of six months, of 1,250 euros per employee who does not not working. The only conditions to be fulfilled: that the turnover between June 2019 and June 2020 has dropped by 25% and that the requesting companies do reopen their doors on June 1st. If the overall endowment of this fund has not been specified, Pierre Gramegna indicated that a ceiling had been decided: 10,000 euros maximum for companies with less than ten employees, 50,000 euros for those with less than 50 employees and 100,000 euros for those with more than 50 employees.

VSEs and SMEs can also benefit from an additional boost for the months of June, July and August to the tune of 750 euros, without proof of a fall in turnover. A measure intended in particular for personal care businesses that have already resumed their activity, such as “hair salons or nail shops”, according to the Minister of Finance. As announced by the Prime Minister, a voucher of 50 euros will be distributed to all residents over the age of 16 and all cross-border workers in order to support tourism players, especially hotels and accommodation structures. “The opportunity to discover or rediscover the country”.

With regard to rents, Pierre Gramegna indicates that the owners of a commercial lease who have agreed to lower the amount will be able to benefit from a tax reduction of a value double that of the reduction granted, within a limit of 15,000 euros . For private leases, a law will prohibit any revaluation throughout the year 2020. Among the other measures set out are the doubling of the cost of living allowance, the revaluation of 10% of legal assistance for young lawyers or the perpetuation of the leave for family support for persons in charge of persons with major disabilities.

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