In 2021-2027, Luxembourg will benefit from €67 million in Cohesion Policy funding to accelerate the country's green transition, finance innovation and digitalisation, increase the employment rate and improve local social services. The strategy and details for these investments are set out in the Partnership Agreement just adopted between Luxembourg and the Commission.
Social inclusion, employment, education and training
€15.5 million from the European Social Fund Plus (ESF+) will support social inclusion, education and employment.
In particular, €5.5 million will support jobseekers and people who are currently neither in a job, nor seeking employment, through for instance tailored training offers, helping them find a job. The funds will also support the social economy for example by financing advice services for start-ups in the social economy, whilst a significant share of the funds will go towards developing digital skills and jobs. With another €1.7 million, Luxembourg will improve the skills of employees, focussing on lower qualified and older workers.
€2.2 million will be explicitly targeted at young people. The funds will improve and modernise their education and training, support careers guidance, fight early school leaving, and boost the integration of young refugees and migrants into the school system. Furthermore, nearly €1 million is dedicated to fighting child poverty and contributing to the implementation of the European Child Guarantee.
Finally, with €3.9 million from the ESF+ Luxembourg will support disadvantaged groups, in particular people with a migrant background. Assistance includes, for instance, training and partnerships with employers for a sustainable integration of people in the job market, and supervision and support services for young people. The country will also invest €1.3 million to support people in need with food and basic necessities.
Towards a net-zero carbon, competitive and digital economy
Around €23 million under the European Regional and Development Fund (ERDF) and the Just Transition Fund (JTF) will help improving the energy efficiency of public buildings, reducing the CO2 emissions in the construction sector and transport. Funds will also be invested in renewable energy production, such as biomass and solar.
Under the ERDF, investments will protect biodiversity, for instance by reducing light pollution.
Finally, Research and Innovation will be supported for example by the establishment of start-ups and excellence centres, which will boost the competitiveness and innovation of small and medium sized businesses (SMEs). The ERDF will also support the digitalisation of procedures for SMEs and of the administration of public services for citizens.
Background
Under Cohesion Policy, and in cooperation with the Commission, each Member State prepares a Partnership Agreement, a strategic document for programming investments from the Cohesion Policy funds – ERDF, ESF+ and the Cohesion Fund – the JTF and the EMFAF during the Multiannual Financial Framework.
The Partnership Agreements focus on EU priorities, laying down the strategy and investment priorities identified by each Member State.
The Partnership Agreement with Luxembourg paves the way for the implementation on the ground of two national ERDF-JTF and ESF programmes. In addition, Luxembourg will benefit of €29 million in six Cohesion Policy Interreg programmes.
Moreover, the Partnership Agreement reflects Luxembourg's strong commitment to the coordinated use of the Cohesion Policy funds with the Recovery and Resilience Facility.
The Partnership Agreement with Luxembourg is the 25th to be adopted following those of Greece, Germany, Austria, Czechia, Lithuania, Finland, Denmark, France, Sweden, the Netherlands, Poland, Bulgaria, Cyprus, Portugal, Estonia, Slovakia, Italy, Romania, Croatia, Slovenia, Malta, Ireland, Latvia, and Spain.
