On Monday 16 March 2026, the OGBL-LCGB trade union federation issued a statement urging that Europe's competitiveness be based on quality investment and jobs.

The unions noted that Luxembourg's Prime Minister Luc Frieden will join other EU leaders in Belgium on Thursday 19 and Friday 20 March 2026 to discuss how to strengthen Europe's competitiveness. "Two opposing visions will clash in Brussels," the statement said. "One, based on deregulation, would significantly weaken worker protections and lead to a race to the bottom for workers, without strengthening the economy. The other option would be based on quality investment and jobs, leading to a stronger and more resilient European economy".

The unions warned that Europe - and Luxembourg - faces serious challenges. Geopolitical and trade tensions, as well as armed conflicts, are putting pressure on the European economy and threatening jobs and wages. Citing European Commission figures, the unions noted that Europe has lost 27,000 manufacturing jobs per month over the past two years. In Luxembourg, mass layoffs at companies such as Amazon, ArcelorMittal's relocation of operations, rising unemployment and declining employment in industry and manufacturing are visible warning signs, according to the statement.

The unions noted that some argue that Europe has become "uncompetitive" because it protects workers too much, advocating deregulation, weakening collective bargaining and more relaxed rules for businesses. The unions rejected this view. They said EU proposals such as the "28th Regime" (a new legal framework for innovative companies) and "EU Inc." (a proposal for a pan-European company structure) could undermine labour rights, collective bargaining agreements and worker representation on boards of directors, while removing protections against dismissals. The unions described this as "a dangerous direction that will improve neither competitiveness nor working and living conditions."

"Competitiveness is not built by removing protections, and Europe’s industrial challenges are not due to excessive workers' rights," they said, adding that Europe's challenges instead stemmed from an investment gap and a lack of coordinated, goal-oriented industrial strategy for each sector and region. The unions highlighted underinvestment in public services, infrastructure, industrial policy, just transitions and quality jobs. They argued that corporate profits are increasingly being redirected to dividends and share buybacks rather than being reinvested productively, thus weakening long-term growth and resilience. They added that European companies invest only 1.49% of GDP in research and development, compared with 2.7% in the United States.

The unions called on the Luxembourg government to advocate an alternative investment-based strategy at the European Council, saying that only this option offered "concrete solutions".

The statement added that this month's meeting offers an "important opportunity to advance a robust European industrial policy", arguing that the "Made in Europe" approach currently under discussion can be used to direct investment towards quality jobs and maximise multiplier effects to strengthen every region and sector. The unions also stressed the need for businesses to "pay their fair share of taxes" in Europe.

"An economic plan for Europe must aim to protect and create quality jobs," the statement continued. "Wages are not costs to be cut. Higher wages are essential to stimulate domestic demand, strengthen the European single market and support investment." The unions advocated "a binding European law on quality jobs, with ambitious transposition into national legislation," to be "implemented without delay".

They also called for changes to rules governing public procurement, which should prioritise value and social conditions. "Competitiveness relies on the vast reservoir of social wealth, supported by quality public services on which businesses depend every day," the statement emphasised.

"Competitiveness must be considered through the lens of the European economy and society as a whole," the unions added. "When workers have quality jobs, they have more money in their pockets and the economy thrives."

The unions concluded that Europe's competitiveness will not be guaranteed by eliminating rights but by investing in a strong economy that delivers quality jobs for all workers.