EU approves €58M for Luxembourg under NextGenerationEU

The Commission issued a positive preliminary assessment of Luxembourg’s second payment request for €58 million under NextGenerationEU, the centrepiece of Europe’s recovery efforts to build a greener, more digital and competitive Union.

The Commission preliminarily concluded that Luxembourg has fulfilled the milestones and targets required for this second instalment, financed under the Recovery and Resilience Facility (RRF), the key instrument of NextGenerationEU.

It follows the implementation of three reforms that entail positive changes for citizens and businesses in the fields of skills development, affordable housing, and quantum communications; and five investments in transport, electrification, digitalisation of public services, health and housing.

Flagship measures in this payment request include:

• Vocational trainings: Luxembourg’s plan includes a skills development reform, featuring a strategy for skill enhancement and the promotion of adult and vocational training. Following an analysis of skill demand, which identified the most promising job profiles, training pathways called ‘Skillsbridges’ were created to better equip workers and job seekers for the job market. Vocational training courses have now been launched.
• Virtual appointments for e-government services: Luxembourg developed infrastructure for virtual appointments between citizens or businesses and the public administration. This investment increases the effectiveness and efficiency of public administration services.
• Subsidies for housing renovation: As part of the REPowerEU measures, Luxembourg enacted legislation establishing aid schemes to support individuals renovating their homes for improved energy efficiency or the use of renewable energy.

Next steps

The Commission has sent its preliminary assessment to the Economic and Financial Committee, which has four weeks to deliver its opinion. Following a positive opinion, the Commission will adopt a payment decision enabling the €58 million disbursement to Luxembourg.

Background

Luxembourg’s Recovery and Resilience Plan set out wide-ranging investments and reforms with the aim of making their economy and society more sustainable, resilient, and prepared for the green and digital transitions. Under the Recovery and Resilience Facility, €241 million has been allocated to support its implementation.

As part of this process, Luxembourg submitted its payment request on 18 December 2024, based on the implementation of ten milestones and targets, set out in their plan. It represents the second instalment of their plan.

Once this payment is completed, the total funds disbursed to Luxembourg under the Recovery and Resilience Facility will reach €90 million, covering 57% of all milestones and targets in the plan.

More information: European Commission