During a Monday morning press conference, Economy Minister Lex Delles presented the Economcy ministry's annual report on granted state aid in 2025, revealing that Luxembourg companies received €440 million in state aid last year, an increase of €170 million compared to the previous year. The number of applications has also risen noticeably, climbing from 1,800 to 2,300 in the space of twelve months. The vast majority of aid granted, some 96%, was directed at small and medium-sized enterprises. The figures do not include other forms of state participation in companies. Overall, state aid in Luxembourg amounts to approximately 0.97% of GDP, placing the country slightly below the EU average.
Digitalisation is the stated priority for aid, though in terms of actual subsidies and tax measures distributed, the ecological and energy transition received the lion's share. Research and support for the creation of new businesses are also among the areas receiving backing.
To illustrate the tangible impact of the aid, Economy Minister Lex Delles pointed to the electrification of industrial processes as a case in point. Just six projects, supported by €100 million in state aid, are expected to save 270,000 tonnes of CO2 over ten years, the equivalent of taking 27,000 cars off the road.
