Franz Fayot pushes for investment

May 22, 2020

5 2 minutes read

The Minister of the Economy, via the measures of the “Neisttart Lëtzebuerg” plan, does not want to see companies in fear of moving forward and “staying seated on their liquidity”.

“Our foundations are sound, our economic base is solid and the government’s strategy to end the crisis is reliable.” This is a lesson in positivism signed Franz Fayot. While the State has chosen to release nearly 800 million euros to revive national activity, the Minister of the Economy wants to believe in better days. “And above all wants to make entrepreneurs believe: 1970-80, the steel crisis, 2008-12 the financial crisis: Luxembourg has always known how to find new ways to revive itself.”

So much for the intention, make way for the method. Essentially, the “New Luxembourg startup” plan will involve incentives to invest for companies. SMEs or large firms could thus benefit from supports of up to 800,000 euros. “We will support investments for 50%innovation, the digitization processes, new organizations, initiatives going in the direction ofcircular economy“, Also advises the Minister.

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”.

Same rate of aid to be provided for employers who would like to improve the energy efficiency of facilities or act in favor of reducing polluting emissions. Anyone who wants to invest in new equipment to review their production line can still knock on the door of the Ministry of the Economy. An envelope filled with subsidies (ranging from 20 to 30% of the expense depending on the size of the business) may be requested.

In total, just on these three devices, Franz Fayot has 30 million euros of financial leverage. And the Socialist Minister recalled: “The State has chosen not to reduce public investments (and even to increase them); companies should follow this example. I understand that in times of uncertainty, they hesitate but they must not remain seated on their liquidity ”. This is valid for today, and will be valid until December 1. Any investment project presented that may benefit – if admissible – from government support.

Recovery objective

With Luxinnovation, as of next week, the government will also present a support program for businesses, large and small. It will be a question of studying with each other the current and future state of the company, analyzing its markets and therefore the possible avenues for restructuring. Enough to ensure a carefully thought-out recovery objective. “Again the Ministry of Economy will cover half of the expense.”

However, with or without help, certain companies will inevitably leave their heads in this crisis. If for the time being, no bankruptcy has yet been registered (the services having remained closed during confinement), closings are to be feared, does not hide the Minister. He had already awkwardly made it known at the start of the epidemic, this time, Etienne Schneider’s replacement announced it with more tact. Preferring to welcome the prolonged partial unemployment schemes, the support given to the revival of businesses or the limitation of redundancies imposed in certain cases by the State.