Economy & Politics

Aid to businesses is gradually being reduced

Like a well-regulated pendulum swing, the level of state support for actors impacted by the pandemic is reducing at the same time as health restrictions. This will be the case, from July, for measures related to uncovered costs and recovery aid.

Jean-Michel HENNEBERT

Jean-Michel HENNEBERT

Like a well-regulated pendulum swing, the level of state support for actors impacted by the pandemic is reducing at the same time as health restrictions. This will be the case, from July, for measures related to uncovered costs and recovery aid.

The lifting of the majority of health restrictions and the generalized resumption of activity will also be synonymous with a reduction in the amount of state aid, confirmed Thursday Lex Delles (DP). Validated Wednesday in the Council of Government, the measure aims to “apply the same logic as that applied since the beginning of the crisis”, namely “the stronger the restrictions, the stronger this exceptional aid. And vice versa, ”specifies the Minister of Middle Classes.


ARCHIV - 07.15.2020, Großbritannien, Edinburgh: Barkeeper Dejah Hajdukovic serviert einen Whiskey im Pub “The Piper's Rest”. Pubs, Cafés und Restaurants dürfen nach den Plänen der Regionalregierungen in beiden britischen Landesteilen wieder öffnen. Foto: Jane Barlow / PA Wire / dpa +++ dpa-Bildfunk +++

More people at the table (up to ten people), extended service hours, a potentially extended aid plan, nightclubs that can reopen: the Horeca will not have been forgotten in the reductions to come from mid-June.


Concretely, if the aid for uncovered costs and the recovery aid intended for the hotel and catering, entertainment, events and culture sectors are both extended until next October , their amount will be officially “adapted”. Thus, aid for uncovered costs – 100% guaranteed for the time being for companies having suffered a loss of 40% of their turnover – will increase to 90% for micro and small companies and to 70% for medium-sized enterprises. And this for the months of September and October, the system remaining the same for the months of July and August.


12.05.2021, Nordrhein-Westfalen, Soest: Die ersten Gäste der Brasserie "Lamäng", die Schwestern Gerlinde Kirschner (2.vr) und Margit Husemann (l) bekommen ihre Bestellung, das sogenannten "Lieblingsfrühstück für Zwei", serviert. In Soest und Lippstadt dürfen im Rahmen eines Modellprojekts Terrassen und Außenbereiche von Cafes und Restaurants wieder öffnen - als erste in NRW. Photo: Bernd Thissen / dpa +++ dpa-Bildfunk +++

The union representing the hotel and catering industry has addressed several demands to the government such as the extension of financial aid or the abolition of rapid tests before a room service. According to the Ministry of the Middle Classes, discussions are underway.


Same logic for the recovery aid – which concerns companies impacted up to 25% of their turnover – which will see the amount of subsidies go from 1,250 euros per month per self-employed worker or per employee to 1,000 euros per month September and October. It should be noted that this logic of progressive reduction also responds to the directives issued from Brussels since the aid for uncovered costs is aligned with a European provision which limits the amount of aid received to 1.8 million euros per company.


Lokales, Demo Horesca, Covid-19, Coronavirus, Chris Karaba / Luxemburger Wort

A few hours after the holding of a demonstration on the Place d’Armes, the DP announces that the Minister for Middle Classes will present new measures to the Governing Council on Friday. These should be detailed next Monday.


“An amount that certain major players, such as large restaurant or hotel chains, have already reached”, specifies Lex Delles. Asked about the consequences of this withdrawal of state support on the number of bankruptcies, the minister has a feeling that “there will inevitably be a little breakage”, while specifying “to be able to imagine that as many people as possible will overcome this crisis”.


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