Economy & Politics

Green light from Brussels for fixed cost aid

Intended to help companies that have lost at least 40% of their turnover, the measure announced in mid-November by the government received the Commission’s approval on Wednesday. The 120 million euros can therefore indeed be distributed.

Jean-Michel HENNEBERT

Jean-Michel HENNEBERT

Intended to help companies that have lost at least 40% of their turnover, the measure announced in mid-November by the government received the Commission’s approval on Wednesday. The 120 million euros can therefore indeed be distributed.

As a corollary of the implementation of new health measures, aid for affected businesses is continuing. On Wednesday, the Commission officially authorized the creation of the new aid dedicated to fixed costs. And this, by virtue of what the European executive calls “the temporary framework of state aid”. In total, this measure intended to support private structures with a loss of turnover of 40% or more represents an overall envelope of 120 million euros.


Wi, PK OGB-L Commerce, Unterstützung für die Geschäfte, rue Alzette Foto: Guy Jallay / Luxemburger Wort

The government has not only decided to maintain the aid system for SMEs until March 2021, but also to open the scope of beneficiaries, in particular to retail businesses and vocational training organizations.


According to the indications provided in mid-October by Lex Delles (DP), Minister for Middle Classes, this novelty integrated into the Recovery Fund, should be used to cover part of the costs. penalizing the cash flow of companies, such as rent or energy. Paid in the form of direct aid, this scheme primarily targets “the hotel and catering, accommodation and entertainment sectors” must be spread over a period between November 2020 and March 2021 and will be capped.

Up to 70% of fixed costs not covered by revenue for the largest structures and 90% for micro-enterprises and SMEs. All within the limit of one million euros per company. For Margrethe Vestager, Executive Vice-President of the Commission in charge of competition policy, “this regime will allow Luxembourg to help its companies meet their fixed costs during this difficult period”.


Wirtschaft, Lex Delles, Minister für Mittelstand und Tourismus, Foto. Guy Wolff / Luxemburger Wort

Lex Delles (DP) does not close the door to an extension of the aid put in place to mitigate the economic consequences of the health crisis. But for the Minister of Middle Classes, the solution will go through a European decision.


Note that this aid is the eighth device authorized by the Commission since mid-March. In total, Brussels has agreed to the payment of 892 million euros, intended to support the economic players of the Grand Duchy. Including some 36,000 SMEs which currently employ 210,000 people.


Tags

Related Articles

Back to top button
Close
Close