COVID-19: Government support to businesses and their aid take-up in spring 2020

Eco News Flash

Eco News Flash 2021/N°2 provides a reference overview of an analysis of three selected support measures from the ‘COVID-19 Economic Stabilisation Programme’ launched by the Luxembourg Government during the outbreak of the COVID-19 pandemic in spring 2020, namely the (i) short-time work scheme, (ii) non-repayable financial aid, and (iii) repayable advances. A heterogeneous impact of the crisis across sectors was observed with accommodation and food services, construction, and commerce standing out as the hardest hit sectors. Of the three support measures analysed, the short-time work scheme had the highest take-up rate, followed by non-repayable financial aid measures with variable rates, and repayable advances with a low rate.

This publication is based on the findings of Christine Elsen’s master’s thesis in economics from HEC Lausanne: ‘COVID-19: Luxembourg’s Government support to businesses and their aid take-up in spring 2020’. Christine worked on COVID-19 topics during her end-of-degree internship at the Luxembourg Chamber of Commerce in the Economic Affairs department in spring 2021.