The Recovery Assistance for Cohesion and the Territories of Europe programme is a €47.5bn package that aims to fund crisis repair with a view to fostering a greener, digital and more resilient economic recovery.

The funds are allocated based on GDP drop, the rise of unemployment, including among young people, as well as the relative wealth of the countries.

Of the Luxembourg funds, around €60m will contribute to paying for the large-scale testing programme, the government said in a press release, with another €10m spent in support of the grand duchy’s vaccination drive.

The other half, around €70m, will go towards Luxembourg’s partial unemployment scheme that pays 80% of wages of employees who are working reduced or no hours because of the pandemic. People on minimum wage receive their full salary.

The partial unemployment programme existed prior to the pandemic but has been expanded significantly to include more sectors of the economy. More than 18,000 hospitality sector workers are currently furloughed, but companies still need to pay their social security contributions.