L-R: Sasha Baillie, Luxinnovation CEO; Franz Fayot, Luxembourg's Economy Minister; Bob Feidt, Economy Ministry; Mario Grotz, Economy Ministry; Credit: MECO

Luxembourg's Minister of the Economy, Franz Fayot, recently provided an update on state aid to businesses, which amounted to €906 million between 2018 and 2022.

The financing of companies and the coordination of state aid schemes are part of the specific tasks of the Ministry of the Economy, as the body responsible for implementing economic development and diversification policy and economic promotion policy.

As part of all the different financial support measures, the Economy Ministry granted a total of €906 million to companies over the period 2018 to 2022, through different types of aid (grants, advances, guarantees, etc.). More than half of this amount (51.7% or €469 million) was granted in the form of aid to companies to carry out investments in Luxembourg amounting to €1.5 billion. Aid for environmental protection alone amounted to €95 million and has led to investments of €404 million.

Minister Fayot commented: "State aid to companies has an important steering effect. By supporting the innovation process and stimulating environmental and climate protection in companies, they are helping to make our economy progressively more sustainable and digital."

The Economy Ministry noted that it has so far granted aid totalling €16 million since the implementation of various temporary aid schemes for companies to cover additional costs linked to Russia's war against Ukraine and subsequent rising prices.