Economy & Politics

In the hope of the 93 million of the recovery plan

Austria and Poland have finally validated the European support system to repay 672 billion euros in aid to member states of the European Union. Luxembourg is waiting for its share.

Austria and Poland have finally validated the European support system to repay 672 billion euros in aid to member states of the European Union. Luxembourg is waiting for its share.

(pj with AFP) – It is a device of an unprecedented scale that the European Union will now deploy: 672 billion euros repayable loans or grants made to overcome the economic consequences of the covid-19 pandemic. And if the initiative had been recorded in July 2020, it was only at the end of May that it was unanimously approved after the favorable vote of the Polish and Austrian parliaments.


Chamber of Deputies - Public session - Budget - Pierre Gramegna - Photo: Pierre Matgé

Pierre Gramegna, is categorical: the Luxembourg budget balance is “almost in balance”. All the more reason for the Liberal finance minister to reject any idea of ​​a new tax.


The mechanism (financed for the first time by a common recourse to the loan) embodies European solidarity in the face of the economic crisis caused by the epidemic. Spain and Italy should be the main beneficiaries with nearly 70 billion euros each, ahead of France (nearly 40 billion), but Luxembourg also intends to receive its share of the pie. A tranche hoped for at 100 million last summer, and readjusted to 93 million euros.

At best, the first payments, which should finance investment projects, should not be paid until the end of July. But the Luxembourg government and its Minister of Finance Pierre Gramegna (DP) already know how this manna ratified by the Twenty-Seven will be distributed.

Indeed, Luxembourg is one of the nineteen states which have already submitted their dossier to the European Commission. A “plan for recovery and resilience” validated at the beginning of March by the government council. Since then, this PRR has been discussed by various Luxembourg bodies and should receive the approval of the European Council soon.

Training, construction, protection

In its requests, Luxembourg listed various projects that it intended to carry out and in three areas: social cohesion, green transition and digitization and innovation. This is how the envelope expected from the European authorities will be used both to support training programs for job seekers and to help build more “affordable and sustainable” housing or to support the reform of the housing market. hospital system in the Grand Duchy.

But the PRR also intends to tap into EU aid to finance initiatives for the energy renovation of public buildings, the protection of biodiversity, the digitization of public services or even “ultra-secure communication infrastructure”. from the country. In addition, in the digital aspect, the recovery plan indicates various other measures intended to improve “the supervision of the financial markets” and “the efficiency of the tax system”. A tax system which the Minister of Finance has just postponed reform.


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