Following the unprecedented crisis caused by the COVID-19 pandemic, Luxembourg’s recovery and resilience plan has responded to the urgent need to foster a strong recovery, while making Luxembourg’s economy and society more resilient and future ready. In response to the energy market disruption caused by Russia's invasion of Ukraine, the Commission launched the REPowerEU Plan. The Recovery and Resilience Facility is at the heart of its implementation and its funding. Under REPowerEU, EU countries are updating their recovery and resilience plans with new measures to save energy and diversify the EU’s energy supplies.
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Green transition
Focusing on green technologies and capacities - sustainable mobility, energy efficiency and renewables, climate change adaptation; circular economy; and biodiversity.
Policies for the next generation
Improving access to and the quality of general, vocational, and higher education; focusing on digital education, early childhood education and care; supporting youth employment.
Smart, sustainable, inclusive growth
promoting entrepreneurship, competitiveness, industrialisation; improving the business environment; fostering research, development and innovation, supporting small- and medium-sized businesses.
Digital transformation
Promoting the roll-out of very high-capacity networks, the digitalisation of public services, government processes, and businesses, in particular SMEs; developing basic and advanced digital skills; supporting digital-related R&D and the deployment of advanced technologies.
Social and territorial cohesion
Improving social and territorial infrastructure and services, including social protection and welfare systems, the inclusion of disadvantaged groups; supporting employment and skills development; creating high-quality, stable jobs.
Health and economic, social and institutional resilience
Improving the resilience, accessibility and quality of health and long-term care, including measures to advance their digitalisation; increasing the effectiveness of public administration systems.
The map exclusively serves information purposes and is not an exhaustive database of projects supported by the Recovery and Resilience Facility. It does not reflect the distribution of the projects funded by the Recovery and Resilience Facility across the European Union, nor across different geographical areas or sectors within EU Member States. The RRF funding amounts shown for measures are based on the initial cost estimates included in the recovery and resilience plans.
Furthermore, the projects showcased are without prejudice to any future assessment by the Commission in the context of verifying the satisfactory fulfilment of milestones and targets under Regulation (EU) 2021/241 establishing the Recovery and Resilience Facility.
Country snapshot
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The country snapshot illustrates some of the most iconic and impactful projects included in the Luxembourgish Recovery and Resilience Plan that will bring positive change for EU citizens, businesses and the EU at large.
The reforms and investments in Luxembourg’s plan are helping the country to become more sustainable, resilient and better prepared for the challenges and opportunities of the green transition and digital transition. Following Council approval of Luxembourg’s plan on 13 July 2021, Luxembourg’s recovery and resilience plan was updated on 17 January 2023 and 23 September 2024, also to introduce a REPowerEU chapter.
*This value includes also de part of the plan which is financed with national resources.
- 13 investment streams and 10 reforms
- 80.1% of the plan will support climate objectives
- 37.5% will foster the digital transition
The transformative impact of Luxembourg’s plan is the result of a combination of complementary reforms and investments, which address several specific challenges and will support cohesion and boost growth potential in the long term. The reforms address bottlenecks to lasting and sustainable growth, while investments are targeted at green and digital transition. They contribute to clean energy and transport, biodiversity protection, as well as the digitalisation of public administration and, as part of a broader European project, developing and deploying an ultra-secure communication infrastructure based on quantum technology. The plan provides training to job seekers, temporary and older workers, improves the resilience of the healthcare system and increases the availability of affordable housing. The plan also promotes a transparent and fair economy through measures aimed at ensuring effective supervision and enforcement of the national anti-money laundering framework.
All measures have to be implemented within a tight timeframe, as the Regulation establishing the Recovery and Resilience Facility requires all milestones and targets within the national plans to be completed by August 2026.
REPowerEU measures in Luxembourg’s plan
Luxembourg’s plan now includes one reform and three investments to reduce its reliance on fossil fuels, in line with one of the REPowerEU Plan's objectives.
To finance this increased ambition, Luxembourg has asked for a share of its Brexit Adjustment Reserve to be transferred to the plan, amounting to €128 million. These funds would be added to Luxembourg's REPowerEU grant of €30 million.
Key measures for REPowerEU
The REPowerEU measures include a reform “National biogas strategy”, which revises Luxembourg’s support scheme for biogas production and contributes to the objective of increasing the production and uptake of sustainable biomethane.
The investments are financial support schemes to accelerate the green transition. They cover energy renovation and construction projects for housing, purchase of zero-emission cars, vans, mopeds and bicycles, and photovoltaic power plants for self-consumption in enterprises.
Together, these measures are expected to foster the deployment of renewable energy, energy efficiency, and sustainable transport.
One of the investments subsidizes the purchase of fully electric vehicles and thus eases the carbon footprint of private transportation as commuters (namely regional and cross-border) constitute a significant portion of Luxembourg`s workforce.
The investment is a continuation of an existing and successfully running programme devised by the Luxembourg government.
Green transition
Luxembourg has one of the highest greenhouse gas (GHG) emissions per capita in the EU, despite being a relatively low carbon-intensive economy. To reach climate neutrality, Luxembourg needs to significantly reduce emissions; notably in the transport and construction sectors.
Key measures for the green transition
- Luxembourg’s plan puts a strong focus on the green transition. Its contribution to the green transition amounts to 80.1% of its total allocation of €241.1 million.
- Specific measures include €30.5 million to enlarge the network of charging points for electric vehicles across the country, and €83.4 million to provide financial aid to people buying zero-emission vehicles.
- The plan also directs €6 million to establish a 'Naturpakt' with municipalities to provide financial support for actions to protect nature and prevent biodiversity loss
Deployment of a network of charging points for electric vehicles across Luxembourg.
- Project locations
- Luxembourg
Digital transition
Luxembourg is among the EU leaders in connectivity with high coverage of next-generation access networks. However, Luxembourg needs to invest in digital skills. In addition, the use of digital public services remains below the EU average.
Key measures for the digital transition
- Luxembourg’s plan contributes to the digital transition of the country with a broad and cross-cutting approach.
- Specific measures to support securing Luxembourg's digital transition include a €10 million investment and a related reform to support quantum-technology communication for ultra-secure connectivity solutions, to improve the security of public sector communications as part of a wider European project, and €13 million to digitalise the public administration, simplifying internal processes as well as those with firms and citizens.
- The plan also includes an investment on future skills for workers and two investments to increase the efficiency of the health sector through its digitalisation.
The plan devotes 37.5% of the available funds to measures that support digital objectives.
Economic and social resilience
Key macro-economic challenges for Luxembourg’s economy include, in particular, a relatively low activity rate for older workers, and a shortage of skilled workers, including in strategic sectors such as information and communication technologies and healthcare. In addition, sharply rising housing prices have an impact on housing affordability, which also risks amplifying inequalities.
Key measures in reinforcing economic and social resilience
- A contribution to skills development is provided by investments of €1.5 million in the vocational training programme “Futureskills”, which aim at developing digital and managerial skills among job seekers.
- The plan also includes a complementary reform, “Skillsdësch”, to design training programmes for the most promising job profiles.
- The single digital register for health professions as well as the reform redefining the competences, tasks and responsibilities of healthcare professionals will contribute to anticipating shortages of healthcare professionals.
- The reform of the “Housing Pact” strengthens the public sector's capacity to increase the supply of affordable and sustainable housing.
- The plan also includes investments amounting to €12.7 million in the modernisation of the public administration and digitalisation of public services so that people and firms can more easily access these services.
- In the fight against money laundering and terrorist financing, the plan foresees the adoption of a new law to improve supervision against money laundering and to perform assessments of money-laundering and terrorist-financing risks in order to strengthen the resilience of the economy
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The FutureSkills programme helps jobseekers get into the job market by providing relevant soft, digital, and managerial skills through online learning and apprenticeships.
- Project locations
- Luxembourg
ANNUAL EVENTS
Annual events facilitate the exchange of views on the state of implementation of the Recovery and resilience plans, while ensuring close cooperation between all stakeholders and providing a platform to discuss interlinks between the Plans and other Union programmes.
More information on Annual events held in Luxembourg can be found here
EUROPEAN SEMESTER
Luxembourg’s plan is consistent with the challenges and priorities identified in the European Semester, the annual cycle of coordination and monitoring of each EU country’s economic policies. For a detailed explanation of the European Semester see the following link: The European Semester explained | European Commission (europa.eu)
National recovery and resilience website
Original Recovery and Resilience Plan (July, 2021)
Original Recovery and Resilience Plan (July, 2021)
Documents
Commission Staff Working Document: Analysis of the recovery and resilience plan of Luxembourg
Press Material
Press release: "Commission endorses Luxembourg's plan"
Factsheet: Luxembourg’s recovery and resilience plan
Questions and answers: European Commission endorses Luxembourg's plan
Further Information
Presentation to the Council of Luxembourg’s recovery and resilience plan
Summary of the assessment of Luxembourg's recovery and resilience plan
Updated Recovery and Resilience Plan (January, 2023)
Documents
Council Implementing Decision amending the Council Implementing decision of 13 July 2021
Press Material
Daily News: Commission approves revised recovery and resilience plan for Luxembourg
Updated Recovery and Resilience Plan (September, 2024)
Documents
Commission Staff Working Document: Analysis of the recovery and resilience plan of Luxembourg
Press Material
Daily News: Le Luxembourg soumet une demande d'ajout d'un chapitre REPowerEU à son plan de relance
Press release: Commission endorses Luxembourg's €241 million modified recovery and resilience plan
Pre-financing
Press release: "European Commission disburses €12.1 million in pre-financing to Luxembourg"
First Payment Request
Documents
Preliminary assessment of the first payment request of Luxembourg
Commission implementing Decision on the authorisation of the first disbursement to Luxembourg
Press Material
Questions and Answers on Luxembourg's disbursement request under NextGenerationEU
Daily News: Commission disburses first payment to Luxembourg