By 2025, the department for economic affairs will have processed 2,326 applications for financial assistance, compared with 1,811 in 2024. This represents a significant increase in the number of applications, which the minister for economic affairs, Lex Delles, attributes this to the government’s introduction of new schemes relating to artificial intelligence (AI) and cybersecurity. This increase in applications is reflected in the volume of funding granted, particularly following the change in the cap on aid under the SME Package—which has shifted from a maximum voucher of €5,000 to coverage of up to 70% of an investment of up to €25,000—and in the rise in tax credits. In total, €315m in capital grants and €125m in tax credits will have been distributed.
“These €440m have helped to mobilise nearly €1.2bn of investment in the national economy,” said the minister for the economy. He added that “this support plays a vital role in enabling businesses to invest, modernise and adapt to major transitions”. Our schemes are aimed at businesses of all sizes and at every stage of development. Our aim is to offer support tailored to the specific needs of businesses in order to strengthen their competitiveness, resilience and capacity for innovation.”
Digital transition
The digital transition accounted for the lion’s share of the funding processed, with 799 applications approved and €128.4m awarded—including €5.6m in direct grants. The SME Digital, AI and Cybersecurity Packages attracted interest from SMEs. 533 applications were approved, compared with 382 in 2025, for a total amount of €5.2m. The Digital Package alone accounted for 93% of applications. Furthermore, the Fit4AI programme was set up to help businesses analyse their AI requirements. Temporary support was also provided to help tourist accommodation providers digitise their accommodation listings, with 94 establishments receiving support in 2025, the minister explained.
In the field of research, development and innovation, the year was also marked by the entry into force of the Act of 6 June 2025, which renewed the framework for support for research, development and innovation. This reform introduced thematic calls for proposals, encourages cross-border collaborative projects and simplifies procedures. In particular, it has reduced the amount of information required on MyGuichet by 40%.
€172m for the green and energy transitions
It was in the area of ecological and energy transition that the highest levels of funding were allocated, with 357 applications approved for a total of €172m—including €2m in tax credits. Of this sum, €102.2m went towards supporting the electrification of production processes in industry. Six projects were selected. The expected climate impact is estimated at 271,096 tonnes of CO2 avoided over a ten-year period.
In the area of environmental protection, 79 applications were approved for a total of €20.6m, “which will have generated €75.6m in investment”. Support for solar power also continued through a fourth call for projects, with 37 projects selected and a planned installed capacity of 14.5MW. The development of vehicle charging infrastructure was also subsidised to the tune of €5.2m, spread across 57 projects (representing 357 charging points, of which 124 are publicly accessible, with a capacity of 24MW). The charging infrastructure grant programme has been extended by two years, running until 2027. Hydrogen refuelling stations and mobile charging points have also become eligible.
SMEs and start-ups at the heart of support schemes
SMEs and start-ups are at the heart of the government’s strategy. To support business creation and entrepreneurial innovation, 303 applications were approved and €9.2m was awarded. The scheme to support first-time business start-ups, introduced in 2023, has continued to gain momentum. In 2025, 283 applications were approved for a total of €3.4m. Since its launch, this scheme has supported 524 projects, totalling €6m. The scheme for innovative start-ups, meanwhile, supported four applications in 2025, totalling €3.2m.
These figures illustrate the central role played by SMEs across all aid schemes.
In 2025, the special scheme for SMEs resulted in 780 applications being approved, totalling €29.5m, and generating €178m in investment.
Across all schemes, SMEs accounted for 2,037 approved applications—representing 96% of all approved applications—totalling €102.2m. “These figures illustrate the central role of SMEs across all aid schemes, whether for productive investment, digitalisation, sustainability, innovation or consultancy services,” commented Lex Delles.
Outlook for 2026
The government intends to continue simplifying and adapting its support schemes. Among the priorities for 2026 is the roll-out of pre-financing for photovoltaic installations, which has been operational since 4 January. The installer register has received 240 applications, with an average processing time of two days. At the same time, 279 grant applications for photovoltaic installations have been received, totalling €2.2m for solar panels and €564,000 for batteries.
Other ongoing projects include, in particular, the European “de minimis” register—a register designed to centralise small amounts of state aid, i.e. up to €300,000 over three years per company—the draft law on investment aid for energy efficiency improvements to commercial buildings, the draft law aimed at strengthening the productivity, competitiveness and resilience of Luxembourg businesses, the SME framework law, and a preliminary draft law on aid for start-ups and scale-ups.
Business needs are changing rapidly, and our tools must evolve alongside them.
The ministry is also continuing its work on developments in the European State aid framework, particularly in the context of the greenhouse gas emissions trading scheme, the Clean Industrial Deal State Aid Framework (Cisaf) and the revision of the General Block Exemption Regulation. “The needs of businesses are changing rapidly, and our instruments must evolve with them. Our priority is to continue simplifying, targeting and adapting aid schemes so that they remain accessible, effective and useful. This is how we can support investment, innovation and Luxembourg’s sustainable competitiveness,” the minister concluded.




