On 6 December 2016, the Chamber of Deputies adopted the reform on municipal finances.
The municipal financial reform, which was initiated by the Luxembourg Minister of the Interior, Dan Kersch, has been adopted at the Chamber of Deputies.
The reform aims to ensure the increased stability of municipal finances and to counterbalance disparities in the current system.
It involves stabilising the municipalities’ proceeds and better balancing these disparities, all the while taking into account the criteria for land-use planning. One of the reform’s most innovative aspects is its implementation of criteria for unified, transparent and updated distribution.
As part of this reform, the government will give the municipalities an additional 90 million euros as well as a supplementary compensation from the state budget, which will ensure that the municipalities preserve at least the same amount of available credit as in 2015.
