Luxembourg's National Recovery and Resilience Plan: Latest state of play

Briefing 05-05-2022

Luxembourg's National Recovery and Resilience Plan (NRRP) is set to be financed by the Recovery and Resilience Facility (RRF) with a total of €93.4 million, consisting of grants alone. While under Article 14 of Regulation (EU) 2021/241 (RRF Regulation) Member States can request RRF loans until 31 August 2023, Luxembourg has not yet done so. The €93.4 million requested is slightly less than the maximum RRF contribution available to the country (around €93.5 million). Luxembourg's RRF allocation is not only the smallest in absolute figures, but also the lowest as a share of grants in relation to both gross domestic product (GDP) (0.15 % of GDP in 2019) and per capita (with €158 per citizen). The Luxembourgish NRRP includes measures for a total estimated value of €183.1 million: the RRF's €93.4 million cover 51 % of the costs, while the remainder will benefit from national (around 46 %) and other EU co-financing (the remaining 3 %). The plan aims to address Luxembourg's structural issues, aggravated by the pandemic. The measures included complement and build on priorities laid out in the national economic stimulus package from May 2020 (i.e. the Neistart Lëtzebuerg programme). The central objective is to support social cohesion and the promotion of a modern and attractive economic environment, while responding to climate and environmental challenges. With 60.9 % of the funds allocated to climate objectives and 31.6 % to the digital transition – well above the RRF Regulation's minimum targets – the NRRP will contribute to common European efforts in these areas. The climate and environmental policy guidelines in the NRRP are consistent with Luxembourg's integrated national energy and climate plan (NECP) for 2021-2030. The Luxembourgish NRRP's components relating to skills, health, housing and governance also support cohesion and growth potential significantly in the long term. The European Parliament participates in interinstitutional forums for cooperation and discussion on the implementation of the RRF, and scrutinises the work of the European Commission. This briefing is one in a series covering all EU Member States.