European Commission President Ursula von der Leyen presents the Commission’s assessment of the original plan to former Prime Minister Bettel in Luxembourg on 18 June 2021; Credit: European Commission

The European Commission has conformed that it received Luxembourg's second request for payment on 17 December 2024, amounting to €58 million in grants, net of pre-financing, under the Recovery and Resilience Facility (RRF).

This payment concerns seven milestones and four targets. It covers reforms to encourage investment initiatives, improve the health system, strengthen the acquisition of new skills and promote affordable housing. The request also concerns significant investments in the areas of electrification of transport, digitalisation of public services and healthcare.

The European Commission has confirmed that it will now examine the request, and will then forward its preliminary assessment of the achievement of these milestones and targets to the Economic and Financial Committee of the Council.

Luxembourg's recovery and resilience plan is supported by an overall financing of €241 million in grants. 

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.