Luxembourg State Secretary for Economic Affairs Francine Closener offered the possibility of new supports for SMEs to encourage the creation, development, conversion or reorientation of artisanal, commercial, industrial or service-providing enterprises having an influence on the economic development of the country when she presented a draft law on renewal and reform of aid to SMEs yesterday.
Adopted by the Governing Council on 28 April 2017, the new aid scheme strengthens the competitiveness of SMEs in the Luxembourg and European markets, which is characterised by wide openness and attractiveness for providers from all EU countries.
With nearly 32,000 enterprises and close to 210,000 employees, accounting for more than half of domestic employment, SMEs play a leading role in economic growth and job creation.
Speaking at the press conference, Secretary Closener said "For the next five years, we have budgeted €89 million to support SMEs, representing an increase of 27% compared to the period 2012-2016. In defining the new aid regime, we have taken care to exploit all the opportunities offered by the Community framework for State aid to undertakings.
“The new measures further support investment and the continued development of SMEs in Luxembourg, thus helping to implement the policy of actively diversifying the national economic fabric.”
The aid measures currently in place include investment aid for SMEs, aid for advisory services for SMEs, and aid for the participation of SMEs in fairs.
Four new measures are proposed in addition to these, namely aid for covering the costs of cooperation borne by SMEs participating in European territorial cooperation projects, aid for young enterprises, aid intended to remedy the damage caused by certain natural disasters, aid for risk financing.
The Secretary of State for Economy, Francine Closener, also presented the balance sheet of the various aid schemes for current SMEs. During the period 2012-2016, the Ministry of the Economy granted a total of €70 million in aid to SMEs, mobilising investments of €665 million. These grants were awarded on the basis of two different schemes, one dedicated to industrial SMEs and the other dedicated to SMEs from the craft or trade sector. By amalgamating these two schemes, the new draft law on aid to SMEs also contributes to the administrative simplification of requests for aid to businesses.
Image: Gilles Scholtus government advisor to the Ministry of Economy, and Secretary Closener
