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Photo Credit: Visit Luxembourg

Kongres Magazine has prepared an overview of European State Aid for Covid-19 for the meetings industry. Considering the meetings and exhibition industry was one of the most affected during the corona crisis, state aid is of utmost importance for the survival and resilience of the sector. Below, the support from the EU and European governments to Luxembourg’s exhibition industry is listed.

We hope the mentioned good practice case will encourage other governments and policymakers to do the same in their respective countries. Exhibitions and trade shows are the fastest of fast-tracks to economic recovery once the coronavirus crisis has passed and will deliver the best return on investment now. We sincerely thank UFI, EEIA, and EMECA for providing valuable information.

CASE STUDY: LUXEMBOURG

Luxembourg was one of the most aiding countries when it came to the meetings and exhibitions industry. Their financial aid helped the industry persevere.

EMERGENCY HELP

Measures related to public guarantees:

On 24 March 2020, Luxembourg’s scheme to support companies and liberal professions affected by the economic impact of the coronavirus outbreak. The support takes the form of a repayable advance to allow beneficiaries to cover their operating costs in the difficult situation caused by the coronavirus outbreak.

On 25 May 2020, a €30 million Luxembourg aid scheme to support investments by companies affected by the coronavirus outbreak. The scheme will be accessible to companies of all sizes active in all sectors, with some exceptions defined by Luxembourg, namely companies active in the financial sector, in the fishery and aquaculture sectors and in the primary production of agricultural products. The objective of the scheme is to enable companies experiencing a decrease in liquidity due to the coronavirus outbreak to undertake investments that they would not otherwise undertake due to the current crisis.

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Photo Credit: Luxembourg Business Events

On 2 June 2020, two Luxemburgish State aid schemes WERE LAUNCHED, AMOUNTING TO €260 million to support certain companies affected by the coronavirus outbreak.

RESTART HELP

Expenditure measures:

On 2 June 2020, two Luxemburgish State aid schemes were launched, for a total estimated amount of €260 million, to support certain companies severely affected by the coronavirus outbreak. In the framework of both schemes, the aid is given in the form of direct grants. The first scheme, with an estimated budget of €200 million, is open to businesses of all sizes operating in certain sectors defined by Luxembourg (including hotels, restaurants, and travel and event organisers). These businesses will be able to benefit from the scheme if they have had a fall in turnover of at least 25% due to the coronavirus outbreak, during the first half of 2020 and if this situation is expected to continue during the second half of 2020. The second scheme, with an estimated budget of €60 million, is open to micro and SMEs in the retail sector, or offering certain categories of services, as defined by Luxembourg (such as hairdressers, opticians, stylists, drycleaning and laundry services). These businesses can benefit if they have had to suspend their activities or have registered a fall in turnover of at least 50% between March and May 2020 due to the pandemic. The aim of these State aid schemes is to respond to companies’ sudden need for liquidity as a result of the coronavirus outbreak and to help them continue their activities.

Measures related to public guarantees:

On 1 July 2020, under EU State aid rules, a €145 million Luxembourgish reinsurance scheme was introduced to support the trade credit insurance market in the context of the coronavirus outbreak. Trade credit insurance protects companies supplying goods and services against the risk of non-payment by their clients. Given the economic impact of the coronavirus outbreak, the risk of insurers not being willing to maintain their insurance coverage has become higher. The Luxembourgish reinsurance scheme, with a total budget of €145 million ensures that trade credit insurance continues to be available to all companies, avoiding the need for buyers of goods or services to pay in advance, therefore reducing their immediate liquidity needs.

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RECOVERY HELP

Expenditure measures:

On 24 November, a Luxembourg state aid scheme of around €120 million was launched, to support the uncovered costs of companies affected by the coronavirus outbreak. The support, in the form of direct grants, was earmarked to provide economic assistance to businesses, including those operating in the hospitality, accommodation and entertainment sectors, to help with the liquidity shortages faced due to the coronavirus outbreak.

On 25 November, a €60 million Luxembourg aid scheme to support certain companies affected by the coronavirus outbreak. The public support, in the form of direct grants, was earmarked for addressing the liquidity needs of the beneficiaries and helping them continue their activities during and after the outbreak. Targeted sectors include hotel and camping, restaurant and catering services, travel and event organisation services, retail trade or vocational training.

To find out more about Luxembourg’s aid scheme, click here.

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