In a press conference on Friday evening, Minister of Finance Franz Fayot said he would not yet be able to give any details about the package, as the government is still analysing the situation with the SNCI and other banks, and trying to find out which measures they should keep, and which should be discarded.
Franz Fayot said that the impact on the economy will not just be "heavy", but it will be "brutal", and thus a corresponding reaction will be required.
Minister of Finance: "I am very purposefully not giving any financial details as to how much the stabilisation plan might cost. I just want to remind people that Luxembourg's public finances are in a healthy condition, which allows us to finance the stabilisation plan in the short-, mid- and longer-term. But we don't want to raise false hopes. We won't be able to help every business. We will do the best we can, and all that we can. That is the only thing that is certain right now."
Franz Fayot also reiterated that short-term working, or partial unemployment, has been extended to all businesses, permanent and fixed-term contracts, as well as to apprentices. However, from next week onwards, these requests will no longer be handed in with the Economic Committee, and instead will have to be handed in at ADEM.
Franz Fayot: "ADEM will be setting up a service on their website that will allow people to submit their requests online. The reimbursement will happen quickly and will date back to the day the government shut down the sector. For restaurants, cafés and commerce this would be March 16th. But I ask of you: please give us a chance to respond to the thousands of requests as quickly as possible. Please be aware that the administration, too, is working at reduced capacity."
According to our sources, providers' food prices have already gone up, which is making life difficult for restaurant owners who are still delivering food. Should, during a time of crisis, market ideology still be alone to reign, a system of supply and demand, or does the government plan to intervene?
Franz Fayot: "This is a step we are not yet planning to take, but I will hear more about this later this evening. We are in a situation where normal rules don't apply, which also means that the usual principles of supply and demand have been affected. This is a state of affairs we need to examine closely. As previously mentioned, in an exceptional context, nothing can be definitely rejected, which means we need to keeps these things on the radar. It is a disconcerting bit of news that we will consider."
When asked whether, as in the US, there would be cheques for people (worth $1000), Franz Fayot said this was not suitable for a country like Luxembourg. The US were a country without social security, whereas here the main plan revolves around saving employment and businesses.
Finally, the Minister of Finance said that he was convinced that practical solutions would be found for the European setting. Germany had, for example, lifted export restrictions on Friday. The free circulation of goods and of people was important for Luxembourg, but this benefit went both ways.
