Briefing – Luxembourg’s National Recovery and Resilience Plan: Latest state of play – 15-07-2025

Source: European Parliament

Luxembourg’s national recovery and resilience plan (NRRP) was initially to be financed by the Recovery and Resilience Facility (RRF) with a total of €93.4 million in grants. This allocation accounted for around 51 % of the plan’s total estimated value (€183.1 million), while a further 46 % of the costs were to be covered by the national budget, and 3 % from other EU co-financing. The NRRP has since been adjusted, first to factor in the European Commission’s 2022 recalculations of the grants available to Member States, bringing Luxembourg’s new RRF total to €82.7 million. In May 2024, Luxembourg submitted a newly revised NRRP, including a REPowerEU chapter with its additional allocation, and modifying existing measures. In February 2025, the country submitted another revised version of plan with no financial implications. The estimated total EU contribution to the NRRP stands at €241.1 million, of which €177.3 million have been dedicated to REPowerEU measures (including a €128.5 million transfer from the Brexit Adjustment Reserve to the RRF). Luxembourg’s RRF allocation remains the smallest in the EU in absolute figures, and the lowest as a share of grants relative to gross domestic product (GDP) (0.4 % of GDP in 2019). Luxembourg has so far received €90.2 million in RRF grants (pre-financing and two payments). The NRRP aims to address Luxembourg’s structural issues. The measures included complement and build on priorities laid out in the national economic stimulus package from May 2020. The central objective is to support social cohesion and the promotion of a modern, attractive economic environment while responding to climate and environmental challenges. The REPowerEU chapter seeks to advance Luxembourg’s green transition, helping it meet EU energy-related recommendations. With 80.1 % of the funds going to climate objectives and 37.5 % to the digital transition (the latter excluding REPowerEU), the NRRP will contribute to EU efforts in these areas. The European Parliament participates in interinstitutional forums for cooperation and discussion on the implementation of the RRF, and scrutinises the Commission’s work. This briefing is one in a series covering all EU Member States. Fifth edition. The ‘NGEU delivery’ briefings are updated at key stages throughout the lifecycle of the plans.