The government earlier this month announced a €75m package to help mostly low-income families shoulder the burden of rising petrol and gas prices. A package of measures of companies is still under discussion.

“Our margins are collapsing,” Horesca said in a statement on Wednesday, as restaurants have to foot higher bills for heating but also kitchens supplied with gas. The sector also faces rising food prices but said it cannot pass the higher costs on to consumers, who in turn feel the pinch of the energy crisis and inflation.

Many employees in the sector meanwhile cannot rely on public transport because of irregular hours, having to foot higher petrol bills. “We see that more and more of our employees are wondering whether being unemployed is not more profitable than having a job.”

Most subsidies announced by the government this month will benefit low-income families who already receive a cost-of-living allowance. The state will also be paying for network costs, which should help reduce energy bills across the board.

Only last week, the government dropped pandemic restrictions for restaurants and bars, roughly two years into the pandemic during which the sector has had to deal with full or partial lockdowns, curfews and a raft of other rules, including the CovidCheck regime.

The government has wound down pandemic aid as a result, but businesses now face new challenges. “We therefore ask the government to take the necessary measures to support businesses and employees and help a vulnerable sector to recover from the health crisis,” the statement said.

The European Commission on 10 March launched a consultation with member states for a temporary crisis framework on state aid. This includes proposals for aid for additional costs “due to the exceptionally high gas and electricity prices.”

The commission heavily regulates subsidies paid to companies under state aid rules and had lifted some restrictions during the pandemic. It said it would assess support measures to remedy what it called “a serious disturbance across the EU economy” as a matter of priority.

Luxembourg’s government is set to meet with employee and employer groups to discuss potential further measures to help stem the rising prices. A date for the meeting hasn’t been set.