Luxembourg, 2020-05-13

Since the first lockdown measures were taken on 16^th March 2020, followed by the declaration of the state of crisis on 18^th March 2020, the Luxembourgish Government Council has elaborated a deconfinement strategy consisting of three phases.

During the first phase which started mid-April, the wearing of a mask or any other device that covers the nose and mouth has been made mandatory for interpersonal contact situations where a safety distance of two meters cannot be guaranteed (e.g. public transport). Surgical masks have been distributed to the entire population, to the services of municipalities and similar entities. Construction sites have been reopened as well as recycling centers, DIY stores, garden centers and landscaping businesses. It was also decided to resume upper school classes as well as internships and practical work at BTS and university level.

The second phase started on 11^th May with the resumption of teaching in secondary schools and the full reopening of businesses, museums, exhibition centers, archives, and libraries. However, several safety measures have to be respected and businesses of the HORECA sector (restaurants, cafés, bars), as well as cinemas and gyms remain closed. Companies, businesses and administrations are generally encouraged to continue to promote working from home. Gatherings of more than 20 people will remain prohibited until 31^st July. The government also started large scale testing on a voluntary basis of the population and cross-border commuters of the Greater Region.

The third phase, to start by the end of May, will consist of the resumption of teaching in primary schools as well as the reopening of nurseries and childcare facilities. This phase will be followed by the resumption of all commercial activities and the reopening of the HORECA sector.

In order to support businesses affected by the financial consequences of COVID-19, the government has taken different measures such as the suspension of several administrative deadlines (e.g. the payment of taxes or social security contributions), the recourse to short-time work and the implementation of refundable and non-refundable emergency aids under certain conditions for start-ups, companies and self-employed in temporary financial difficulty.

These financial aids include, for example, a repayable financial advance of up to EUR 500.000 for companies, non-refundable emergency aids for micro and small businesses between EUR 5.000 and EUR 12.500, and between EUR 3.000 and EUR 4.000 for self-employed.

Author: Anne-Marie Schmit, attorney at law

ETUDE ANNE-MARIE SCHMIT