The European Commission has approved the modification of Luxembourg's aid scheme to support the uncovered fixed costs of companies affected by the COVID-19 pandemic.

The Commission has found the changes to this existing scheme in Luxembourg to be in line with  the State aid Temporary Framework. The scheme was approved by the Commission on 24 November 2020 and was first amended on 21 December 2020.

Luxembourg recently notified to the Commission the following modifications to the scheme: the prolongation of the duration of the scheme until June 2021; the increase of the budget from €120 million to €180 million; other amendments modifying the categories of eligible beneficiaries and the eligibility conditions for the months from February until June 2021, as well as the calculation of eligible costs and aid intensities.

The Commission concluded that the scheme, as modified, remains necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a European Union (EU) Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the amendments under EU state aid rules.