POLITICS & INSTITUTIONS - ECONOMY

Lux could tap EU covid-19 rescue funds to back SME loans



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MP André Bauler will shepherd a draft bill that could result in EU funds being used by Luxembourg’s government to guarantee loans to SMEs. Pictured: André Bauler is seen speaking during a parliamentary session, 5 May 2020. Photo credit: Chambre des Députés 

The funding comes from three EU sources which add up to €540bn for use across the bloc, the finance and budget committee heard on 3 May.

The first is the European Commission’s €100bn “Sure” instrument to support short-time working schemes. The second is the European Investment Bank’s €200bn SME lending programme. And the third is the European Stability Mechanism’s €240bn credit lines to EU member states.

These funds are separate from the €750bn stimulus package proposed by the European Commission last week.

The finance ministry told the committee that the guarantees would have limited impact on Luxembourg’s public debt.

The committee then named its chair, André Bauler (DP), rapporteur of bill 7595.