Credit: SIP / Jean-Christophe Verhaegen

On Tuesday 20 September 2022, Luxembourg's Ministry of State announced the outcome of the Tripartite Coordination Committee meetings and the agreements reached in principle.

The meetings took place on 18, 19 and 20 September 2022 wherein the government met again with the social partners to continue the work of the Tripartite Coordination Committee and agree on measures to limit the impact of inflationary pressure on households and businesses.

The Government, the three unions (OGBL, LCGB and CGFP) and employers, represented by the UEL, have agreed in principle on a new package of measures.

This package provides in particular:

  • Brake on energy prices: limitation of the increase in gas prices up to 15% compared to their current level;
  • Stabilisation of electricity prices;
  • Reduction of €0.15 per litre for heating oil (mazout)
  • Temporary reduction in the normal VAT rate from 17% to 16%, the intermediate rate from 14% to 13% and the reduced rate from 8% to 7%;
  • New energy aid for small and medium-sized enterprises;
  • Modernisation of the tax credit for investments;
  • Subsidy for electric charging stations accessible to the public;
  • Extra boost to switch from oil or gas to electricity;
  • Promotion of self-consumption among companies by launching a new call for tenders;
  • The rate of the minimum social wage will be adapted to the evolution of the average wage;
  • The Energy Bonus will be extended;
  • Contribution to finance the increase in energy prices for residents of accommodation structures for the elderly.