How Luxembourg ranks within EU countries
Total investment
March 2022
- Total financing under the European Fund for Strategic Investments (EFSI) in Luxembourg amounts to €157 million and is set to trigger €637 million in additional investments
Infrastructure and innovation projects
- 7 approved projects financed by the European Investment Bank (EIB) with EFSI backing
- approximately €44 million in total financing
- set to trigger €231 million in total investment
Small and medium enterprises (SMEs)
- 7 approved agreements with intermediary banks or funds financed by European Investment Fund (EIF) with EFSI backing
- €114 million in total financing
- set to trigger approximately €406 million in investments with some 1570 SMEs and mid-cap companies expected to benefit from improved access to finance
Examples of projects supported by the Investment Plan in Luxembourg
Flen Pharma is a pharmaceutical company that produces a new class of wound-healing products, reducing pain and trauma after injury. Its gel continuously cleans the wound, speeding up the healing process and avoiding any scar tissue. It can be used on all tissues and throughout all phases of wound healing, making the life of wound experts and their patients easier. To increase its research and development activities, the company secured a loan from ING which is guaranteed by the Juncker Plan. Flen Pharma was able to hire new researchers as a result of this financing boost.
OHB LuxSpace produces microsatellites, which are used for highly specialised tasks, such as to detect large fires in inaccessible areas, to observe the melting of ice in polar regions, and to help analyse the status of rain forests. International demand for these small, lightweight satellites is growing. OHB LuxSpace’s parent company OHB System AG received a loan of €30 million from the EIB under the Juncker Plan to invest in research and development as part of “Electra”, the European Space Agency’s programme aimed at developing a telecommunications microsatellite with a fully electric propulsion system.
Learning to tango: DANCE FACTORY
Dance Factory is a dance school in Luxembourg which offers classes in tango, salsa, Cuban and African dance and yoga. When the company was starting out, it needed credit to pay the rent and develop the business, however it struggled to secure financing. Eventually, Dance Factory secured a loan from Microlux which provides finance specifically for very small businesses. The company has expanded and now teaches 200 students. It has also created new jobs, hiring nine teachers. Dance Factory plans to open new branches in Luxembourg soon.
Cake Atelier is a workshop in traditional pastry and cake design in Luxembourg. With the business growing, in May 2017 company founder Emilia moved the business to a central location in the town of Dudelange in southern Luxembourg. She secured a loan from Microlux, backed by the EIF under the Juncker Plan in order to invest in more material and a larger stock to meet higher demand. The business continues to grow.
Full list of EFSI-backed projects approved by the EIB
Full list of EFSI-backed agreements with financial intermediaries signed by the EIF