7. Financing and support
Luxembourg
Last update: February, 2023
The following data refers to total public culture expenditure in Luxembourg in 2016:
“Between 1990 and 2016, total public administration expenditure allocated to culture increased fivefold (+396%) in current euros thanks to an average annual growth rate of +4.2%, i.e. an increase of +194% after adjusting for inflation. In relation to the national population, the average public cultural expenditure has tripled, evolving from 191 euros per inhabitant in 1990 to 624 euros in 2016. Over the same period, we nevertheless observe a downward movement of the indicators of the ratio of cultural expenditure in relation to the main aggregates, usually used to analyse the evolution of public effort, such as total public expenditure and gross domestic product (GDP). This movement demonstrates that culture is not taking full advantage of increased public spending and national economic growth. The ratio of total expenditure on culture in relation to all expenditure fell from 2.09% in 1990 to 2.04% in 2016, after reaching a maximum in 2005 (3.12%), while the ratio of Cultural expenditure to GDP fell from 0.83% in 1990 to 0.68% in 2016, after also experiencing a peak ratio in 2005 (0.95%). Adding up the overall cultural expenditure incurred by the State, culture totalled 211.9 million euros in expenditure in 2016, i.e. 1.4% of all State expenditure, while the municipalities achieved a consolidated total of 147.4 million. The analysis of cultural expenditure shows that its progression remains highly differentiated depending on the public administration that incurs it.”[4]
[1] Kulturentwécklungsplang 2018-2028, p. 64, Evolution of public expenditure for culture from 1990 to 2016, sources: Ministry of Finance, Ministry of Interior, STATEC.
[2] Kulturentwécklungsplang 2018-2028, p. 52.
[3] Kulturentwécklungsplang 2018-2028, p. 64, Evolution of public expenditure for culture from 1990 to 2016, sources: Ministry of Finance, Ministry of Interior, STATEC.
[4] Kulturentwécklungsplang 2018-2028, p. 55.
Last update: February, 2023
Table 7. Public cultural expenditure by level of government, 2016
|
Level of government |
Total expenditure in EUR millions* |
% share of total |
|
State (central, federal) |
211,9 |
59% |
|
Regional (provincial, Länder, etc.) |
- |
- |
|
Local (municipal, incl. counties) |
176,1 |
41% |
|
TOTAL |
359,4 |
100% |
Note: * At the date of expenditure
Source: Kulturentwécklungsplang 2018-2028, original sources: Ministry of Finance, Ministry of Interior, STATEC[1]
For evolution of these figures 1990-2016, please refer to Kulturentwécklungsplang 2018-2028.[2]
Besides the ministry of Culture, other public administrations (ministries and municipalities) contribute to the financing of the cultural sector. In 2016, these other public administrations together spent on culture twice as much as the ministry of Culture (EUR 241.6 million vs EUR 117.7). The "public effort for culture", that is to say the financial mass devoted to culture by all public administrations amounted to 359.4 million euros in 2016, i.e. 2% of all public expenditure.[3]
[1] Kulturentwécklungsplang 2018-2028, p. 64, Evolution of public expenditure for culture from 1990 to 2016, sources: Ministry of Finance, Ministry of Interior, STATEC
[2] Kulturentwécklungsplang 2018-2028, p. 64, Evolution of public expenditure for culture from 1990 to 2016, sources: Ministry of Finance, Ministry of Interior, STATEC
[3] Kulturentwécklungsplang 2018-2028, p. 55.
Last update: February, 2023
Table 8: Dépenses culturelles publiques consolidées* par domaines d’intervention, en millions d’euros courants de 1990 à 2016[1]
|
1990 |
1995 |
2000 |
2005 |
2010 |
2015 |
2016 |
2016 (%) |
|
|
PATRIMOINE CULTUREL |
15.0 |
24.1 |
63.3 |
70.7 |
88.9 |
106.3 |
97.9 |
27.2% |
|
Patrimoine architectural, archéologique et audiovisuel |
8.1 |
9.2 |
27.5 |
26.9 |
31.9 |
23.3 |
23.4 |
6.5% |
|
Archives |
0.9 |
1.2 |
1.5 |
2.3 |
2.7 |
2.9 |
2.9 |
0.8% |
|
Bibliothèques |
2.6 |
3.9 |
5.6 |
7.8 |
10.5 |
27.6 |
27.1 |
7.5% |
|
Musées |
3.3 |
9.6 |
28.4 |
33.4 |
42.9 |
52.1 |
44.3 |
12.3% |
|
Autres |
- |
- |
0.2 |
0.2 |
0.6 |
0.3 |
0.1 |
0.0% |
|
ARCHITECTURE |
- |
- |
- |
.. |
0.2 |
.. |
0.2 |
0.1% |
|
Architecture |
- |
- |
- |
.. |
0.2 |
.. |
0.2 |
0.1% |
|
ARTS VISUELS |
0.2 |
0.2 |
1.2 |
1.1 |
0.5 |
0.8 |
1.4 |
0.4% |
|
Arts plastiques |
- |
- |
0.1 |
0.1 |
0.2 |
0.4 |
1.1 |
0.3% |
|
Photographie |
- |
- |
.. |
.. |
.. |
.. |
.. |
.. |
|
Pluridisciplinaires des arts visuels |
0.2 |
0.2 |
1.1 |
0.9 |
0.2 |
0.3 |
0.2 |
0.1% |
|
ARTS DU SPECTACLE |
8.3 |
11.9 |
48.3 |
136.5 |
100.1 |
131.0 |
128.0 |
35.6% |
|
Musique |
5.6 |
8.6 |
36.1 |
114.9 |
72.5 |
104.4 |
100.9 |
28.1% |
|
Chant |
- |
.. |
.. |
0.2 |
0.4 |
0.3 |
0.4 |
0.1% |
|
Danse |
- |
- |
0.1 |
0.2 |
0.3 |
0.4 |
0.4 |
0.1% |
|
Théâtre musical |
- |
- |
.. |
- |
- |
.. |
.. |
.. |
|
Théâtre |
1.0 |
2.2 |
11.0 |
19.8 |
25.2 |
24.4 |
24.8 |
6.9% |
|
Autres |
- |
- |
- |
- |
- |
- |
- |
.. |
|
Pluridisciplinaire des arts du spectacle |
1.6 |
0.9 |
0.9 |
1.2 |
1.5 |
1.3 |
1.2 |
0.3% |
|
IMPRIMÉS |
0.7 |
3.6 |
4.7 |
8.3 |
9.6 |
9.2 |
9.2 |
2.6% |
|
Livre et littérature |
.. |
1.7 |
0.5 |
1.3 |
1.6 |
1.6 |
1.6 |
0.4% |
|
Presse |
0.7 |
1.9 |
4.1 |
6.9 |
8.0 |
7.6 |
7.6 |
2.1% |
|
CINÉMA ET AUDIOVISUEL |
1.4 |
11.2 |
5.8 |
9.6 |
12.8 |
41.5 |
41.8 |
11.6% |
|
Cinéma |
- |
0.2 |
0.2 |
0.3 |
0.1 |
0.3 |
0.4 |
0.1% |
|
Radio |
- |
1.9 |
2.4 |
3.4 |
4.3 |
5.4 |
5.7 |
1.6% |
|
Télévision |
- |
6.5 |
3.8 |
0.9 |
0.9 |
0.9 |
0.9 |
0.3% |
|
Autres, audiovisuel |
- |
- |
.. |
- |
- |
.. |
- |
.. |
|
Pluridisciplinaire audiovisuel |
1.4 |
2.5 |
2.8 |
4.8 |
7.3 |
34.7 |
34.6 |
9.6% |
|
INTERDISCIPLINAIRE |
34.7 |
52.1 |
15.4 |
16.9 |
28.4 |
14.4 |
15.6 |
4.3% |
|
Interdisciplinaire |
34.7 |
52.1 |
15.4 |
16.9 |
28.4 |
14.4 |
15.6 |
4.3% |
|
SOCIOCULTUREL |
9.4 |
14.7 |
29.6 |
38.6 |
46.8 |
45.9 |
58.2 |
16.2% |
|
Socioculturel |
9.4 |
14.7 |
29.6 |
38.6 |
46.8 |
45.9 |
58.2 |
16.2% |
|
AUTRES |
2.2 |
2.6 |
3.3 |
4.7 |
6.0 |
6.6 |
6.7 |
1.9% |
|
Autres |
2.2 |
2.6 |
3.3 |
4.7 |
6.0 |
6.6 |
6.7 |
1.9% |
|
TOTAL |
72.4 |
120.7 |
171.9 |
286.7 |
293.7 |
356.1 |
359.4 |
100% |
Source: Kulturentwécklungsplang 2018-2028, p. 65, from: Ministry of Finance, Ministry of Interior, STATEC
*The amounts presented in the table above are "consolidated" because they deduct all expenses from the total cultural transfers from the State to the municipalities and transfers between municipalities.[2]
“One notes that nearly two-thirds (62.9%) of the public cultural expenditure is directed towards the performing arts and cultural heritage. A more detailed analysis reveals that each category of public administration gives priority to supporting certain areas, which correspond to its fields of competence. Cultural heritage is the prerogative of the ministry of Culture (58% of the total spending in this broad area), while the funding for the film and audiovisual industries is mainly provided by other ministries (94% of the total spending in this equally vast field). Finally, the performing arts and the socio-cultural field are financed mainly by the municipalities (76% and 84%).”[3]
[1] Kulturentwécklungsplang 2018-2028, p. 65, sources: Sources : Ministry of Finance, Ministry of Interior, STATEC
[2] Kulturentwécklungsplang 2018-2028, p. 55.
[3] Kulturentwécklungsplang 2018-2028, p. 56.
Last update: February, 2023
The Luxembourg State "has put in place a whole range of measures and mechanisms to promote the knowledge society, the preservation of our memory, the support and mobility of artists and creators both nationally and internationally, local support for certain cultural projects and cultural training.”[1]
The main support system chosen by the government is an agreement mechanism (“Conventions”). The ministry of Culture has signed agreements with more or less 80 cultural and creative structures, associations, federations etc. that receive a fixed amount of public funding in return for a specific project or, mostly, specific missions to be fulfilled by the beneficiaries that thus become important actors for the implementation of cultural policy. Subsidising is another direct support system provided by the ministry of Culture, though many of the subsidies have been “outsourced” in the meantime to kultur|lx - Arts Council Luxembourg in order to reduce and better organise funding channels. The ministry of Culture can also provide a specific support in the context of artistic career development and research related to artistic realizations in the form of a grant to support artistic creation, development and retraining.
Apart from the social and fiscal measures as developed in chapters 4.1.3 and 4.1.4, other indirect measures and structural actions have been put in place by the ministry of Culture to support artistic creation, such as:
- Commissioning of musical works[2]
- Acquisition of works by Luxembourg artists or artists living/working in Luxembourg for the art collection of the ministry of Culture.
The works in this collection are made available for the artistic layout of ministries and government administrations, as well as for loans to cultural institutions.
- Provision of the Bourglinster Annexes, workshops for emerging national and international artists
- « Kunst am Bau » - 1% of the total cost of a building constructed by the State or by municipalities or public establishments, financed or subsidised to a significant extent by the State, must be allocated to the acquisition of artistic works (see point 4.2.4)
Neistart Lëtzebuerg: as part of the package of support measures in the context of the COVID-19 pandemic, the ministry of Culture introduced several new measures as of May 2020 to boost culture and artistic creation in Luxembourg.
Some of the State cultural institutes or other public cultural structures also propose specific support programmes (mainly grants, project support and artist residencies) benefitting different sectors, in particular the National Audiovisual Centre (CNA), the National Institute for Architectural heritage (INPA), the Rockhal’s Rocklab, the Centre culturel de rencontre neimënster etc.
Two public funds also play an important role in the cultural and creative domain:
- The Fonds Culturel National FOCUNA “has as its mission to receive, manage and use allocations and donations from public and private sources for the promotion of the arts and sciences and the conservation, restoration and appropriate use of the national historical and cultural heritage, both immovable and movable”.
- In terms of audiovisual, the Film Fund/Fonds national de soutien à la production audiovisuelle proposes one main financial incentive for film productions: the so called National Audiovisual Production Support (AFS) is a “selective scheme which provides discretionary loans to producers to finance development and scriptwriting, distribution and production/coproduction for fiction, animation, documentaries, short films, transmedia and XR projects, repayable from the finished work’s receipts. Applications are evaluated by a selection committee based on cultural, social and economic criteria.”[3]
Important support schemes for culture are also provided by the Œuvre nationale de Secours Grande-Duchesse Charlotte, a public body which offers different types of aid, either project funding aid for organisations wishing to finance or co-finance a specific project, or start-up funding aid for artists and cultural actors who intend to carry out a project of obvious interest to the public. With the culture and creation prize fund, the work also finances competitions, residencies, professional training courses or grants.
[1] https://mc.gouvernement.lu/fr/Domaines.html
[2] Rapport d’activité 2020 (2021) Ministère de la Culture, p.40-44
[3] http://www.filmfund.lu/film-fund-luxembourg/financial-incentives-for-film-productions
Funds in favour of artists are detailed under point 7.2.1. They include the following public institutions:
- Fonds culturel national FOCUNA
- Œuvre de secours Grande-Duchesse Charlotte – Fonds Start-up et Fonds Prix culture et création
- Film Fund/onds national de soutien à la production audiovisuelle
- Kultur|Lx
The following funds are currently being implemented and/or studied :
Fonds pour le patrimoine architectural géré par l’Institut national du patrimoine architectural
Last update: February, 2023
An overview of prizes and awards is available and regularly updated on the following website: https://kep.public.lu/fr/documentation/kulturentwecklungsplang-2018-2028-1-0-derniere-version/kep-4-1-4.html .
Last update: February, 2023
There is a large network of federations, national networksm professional and sectorial associations, some of which received specific missions from the ministry of Culture on the basis of agreements (see 7.2.1.).
Last update: February, 2023
One of the objectives expressed in KEP is to create a legal and operational framework without obstacles and limitations for private sponsoring, that is complementary to public funding. Recommendation No. 62 thus relates to a reform of the law on sponsoring.[1]
The National Cultural Fund (FOCUNA), created in 1982, had as its first objective to generate and organize patronage for the benefit of the cultural scene in Luxembourg, leveraging the generosity and enthusiasm of individuals or company leaders for supporting the cultural expansion.[2] The practical guide to cultural patronage / sponsorship published by FOCUNA is intended to provide businesses and individuals with the necessary information on patronage and the various forms of donation, as well as the many related benefits (corporate image, tax exemption).[3] The Fund also gives patrons the possibility of contributing to aid professional artists via a specific grant program.[4]
Even though recent data concerning the patronage and sponsorship of culture is lacking, it is a fact that the private financing of culture through patronage and sponsorship remains weak.[5] For instance, private funding (sponsors, patrons) contributed as little as 1.8% of total revenue of museums in Luxembourg in 2012.[6] The situation was not better in other domains, as museum patronage already represents 34.2% of the total amount of sponsorship to the cultural sector, estimated at a total of 1.52 million euros in 2012 by statistical surveys of the ministry of Culture. [7]
While remaining mostly a minority funding source, it has been and remains very valued, like that of Jean-Pierre Pescatore, whose legacy of 1853 founded the art collections of the City of Luxembourg.[8] The National Cultural Fund has witnessed a multitude of various gifts, whether in cashor in kind, throughout the years of operation.[9] Many patrons continue to enrich the collections of Luxembourg museums through the donation of works or objects.[10] Public donations to some cultural organisations (depending on their legal status) can be tax-deductible if the annual sum of individual’s support is equal to or greater than 120€ and does not exceed 20% of their total net income, or 1.000.000€.[11]
An important factor also is the growing role of foundations, whose aid is distinguished by its continuity over time and by its strategic approach.[12] Several art foundations work under the auspices of the Fondation de Luxembourg.[13] In the example of literature, “the Raoul Servais Foundation is the first and only foundation whose sole purpose is the promotion of literature in the Grand Duchy of Luxembourg, through the award of the Servais Prize, among other things.”[14]
Another important recent phenomenon is the re-emergence of public patronage, often under the slogan of crowdfunding or "acts of cultural citizenship". Examples include fundraising organized by the National Museum of History for an acquisition of specific masterpiece[15] raised more than € 100,000, with private donations ranging from 5 to 5,000 €.[16]
Work of associations such ‘friends of…’ is also an important contribution in this field, such as the association Friends of the Museums of Art and History Luxembourg or the Amis des Musées that promote Luxembourgish museums and culture nationally and internationally and often participate in the crowdfunding for the purchase of Art works donated to one of the museums in Luxembourg. Some cultural institutions have their own “friends of..” association, one example being MUDAM with its American Friends of MUDAM, “an independent philanthropic organization [that] supports and encourages the acquisition and donation of contemporary artworks and raises funds for the museum’s exhibitions and educational programs”.[17]
When it comes to enterprise patronage, companies are moving from the personal initiative of one manager to a more structured and formalized approach, with the boundary between patronage and sponsorship often becoming blurry[18], leading to discussions about values and independence of cultural institutions. Putting aside these considerations, companies play a relevant role in Luxembourg art and culture landscape. Banks and professional services companies are good examples, often owning their own art collections (see the described earlier Private Art Kirchberg - an open-day event for corporate art collections based on the Kirchberg plateau), and corporations of any kind often serve as major sponsors of important cultural events (for instance as Esch2022 partners), or more regular patrons and partners of cultural institutions (see e.g. MUDAM’s sponsorship and partnership programme or the PhilaPhil Corporate, the Philharmonie’s sponsors club, to just name a few).
Being one of the financial centres in Europe, back in 2008 Deloitte unveiled a strategy to develop Luxembourg as an international centre of expertise for art investment funds, supported by the then-Minister of Culture.[19] Today, Luxembourg is also home to some art investment funds. However, these do not necessarily focus on domestic art talent but rather follow the international art investment trends (e.g. IN ART FUND, while being a Luxembourg-based Investment Fund, invests in global art collections[20]) so the impact of this development on the Luxembourg art and culture scene is limited.
Finally, there is also funding coming from the National Lottery, which transfers all of its net income, through the Œuvre Nationale de Secours Grande-Duchesse Charlotte, to public institutions and non-governmental organizations (in particular foundations and associations) working in various fields, including culture.[21]
[1] Kulturentwécklungsplang eBook 1.0 - Septembre 2018, Volume 1, p. 180.
[2] Kulturentwécklungsplang eBook 1.0 - Septembre 2018, Volume 1, p. 55.
[3] https://www.focuna.lu/fr/Guide-pratique; Accessed 7 December 2021.
[4] https://www.focuna.lu/fr/Editorial; Accessed 7 December 2021.
[5] Kulturentwécklungsplang eBook 1.0 - Septembre 2018, Volume 1, p. 55.
[6] Philippe Robin (2016) Portrait statistique des musées luxembourgeois, Lettre d’information d’analyse statistique du secteur culturel luxembourgeois, No. 2, April 2016, p. 18; Available at: https://www.egmus.eu/fileadmin/national_Data/Question_s_2Culture_2016_1-Musees.pdf
[7] Philippe Robin (2016) Portrait statistique des musées luxembourgeois, Lettre d’information d’analyse statistique du secteur culturel luxembourgeois, No. 2, April 2016, p. 18; Available at: https://www.egmus.eu/fileadmin/national_Data/Question_s_2Culture_2016_1-Musees.pdf
[8] Michel Polfer (2020) L’importance du mécénat pour les musées, Fondation de Luxembourg Philanthropy Letter, Winter 2020, p. 4.
[9] Kulturentwécklungsplang eBook 1.0 - Septembre 2018, Volume 1, p. 179.
[10] Michel Polfer (2020) L’importance du mécénat pour les musées, Fondation de Luxembourg Philanthropy Letter, Winter 2020, p. 4.
[11] https://www.mudam.com/support; Accessed 7 December 2021.
[12] Michel Polfer (2020) L’importance du mécénat pour les musées, Fondation de Luxembourg Philanthropy Letter, Winter 2020, p. 4.
[13] See more at: https://www.fdlux.lu/fr/node/99/?type=foundation&filter=Focus%20area&tid=77
[14] Pierre Marson (2021) Panorama of Literature and Publishing in Luxembourg, https://www.kulturlx.lu/en/panorama-category/literature-and-publishing/; Accessed 17 November 2021.
[15] Read about the « Tous mécènes d’un Koekkoek ! » crowdfunding action considered to be a national success story here: https://www.mnha.lu/en/the-mnha/patronage/koekkoek-a-success-story
[16] See more at: https://www.fdlux.lu/fr/node/99/?type=foundation&filter=Focus%20area&tid=77
[17] https://www.amcham.lu/events/american-friends-of-mudam-cultural-exchange-with-luxembourg/; Accessed 7 December 2021.
[18] See more at: https://www.fdlux.lu/fr/node/99/?type=foundation&filter=Focus%20area&tid=77
[19] https://paperjam.lu/article/news-luxembourg-an-art-financial-cluster; Accessed 7 December 2021.
[20] http://inartfund.lu; Accessed 18 November 2021.
[21] https://loterie.lu/content/portal/fr/corporate/notre-motivation/games-for-good-causes.html; Accessed 7 December 2021.