The European Commission found Luxembourg’s reforms and investments in skills, housing and digitalisation sufficient to unlock the second €58m tranche of EU recovery funds. Photo: Shutterstock

The European Commission found Luxembourg’s reforms and investments in skills, housing and digitalisation sufficient to unlock the second €58m tranche of EU recovery funds. Photo: Shutterstock

The European Commission has approved a €58m payment to Luxembourg under the recovery and resilience facility, subject to the final opinion of the economic and financial committee.

The European Commission issued a positive preliminary assessment of Luxembourg’s second payment request for €58m under the recovery and resilience facility (RRF), stating that the country had fulfilled all required milestones and targets. The assessment, on 2 May 2025, is part of the broader NextGenerationEU programme, aimed at supporting economic recovery across the European Union.

Targets achieved

According to the commission, the positive assessment followed the completion of ten specific milestones and targets. These formed part of Luxembourg’s broader recovery and resilience plan and included three reforms and five investments across several sectors. The reforms focused on skills development, affordable housing and quantum communications, while investments were made in transport electrification, digitalisation of public services, healthcare and housing.

In the area of skills development, Luxembourg launched a strategy aimed at enhancing adult and vocational training. The commission noted that this strategy followed an analysis identifying high-demand job profiles, leading to the creation of training pathways known as “Skillsbridges.” These pathways were designed to better equip workers and job seekers with relevant skills, and vocational training courses have now been implemented.

The digitalisation of public services included the development of infrastructure for virtual appointments between citizens or businesses and public administration. The commission stated that this investment aimed to improve both the effectiveness and efficiency of government services.

In housing, Luxembourg enacted legislation as part of the REPowerEU measures to introduce aid schemes supporting home renovations. These schemes provide subsidies to individuals for improving energy efficiency or installing renewable energy systems.

Disbursement process

Luxembourg submitted the payment request on 18 December 2024. The €58m request represented the second instalment of funding under the RRF. Following the commission’s preliminary assessment, the economic and financial committee has four weeks to deliver its opinion. A positive opinion would allow the commission to adopt a payment decision and proceed with the disbursement.

Once this payment is completed, total funds disbursed to Luxembourg under the RRF will reach €90m. This amount accounts for 57% of all milestones and targets included in Luxembourg’s recovery and resilience plan.

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