L-R: Nora Back, OGBL President; Patrick Dury, LCGB President, Vice President of Chamber of Employees; Paulette Lenert, Deputy PM, Minister for Consumer Protection, Minister of Health; PM Xavier Bettel;
Credit: SIP / Luc Deflorenne
On Wednesday 23 March 2022, the Luxembourg Government met for the second time with social partners and employers' representatives to formalise measures to limit the impact of rising energy prices and inflation on households and businesses.
In this context, the government proposed the following measures:
- A reduction of 7.5 cents per liter of fuel (petrol, diesel and heating oil) until the end of July 2022;
- A freeze on rent increases until the end of 2022 and an adjustment of the rent subsidy;
- An adaptation of the "Prime House" financial aid scheme to make it more social;
- The next indexation (2.5% increase in salaries and pensions) will go ahead in April 2022 would be maintained;
- A second indexation planned for August 2022 will be postponed to April 2023. If an additional indexation happens to fall in 2023, the former will be postponed by another twelve months and compensated on the basis the same calculation mechanism;
- People suffering from a loss of purchasing power will be compensated by means of a tax credit, the exact amount of which remains to be defined;
- An adjustment of the tax credit linked to the CO2 tax;
- The introduction of specific aid for companies affected by rising energy prices.
In the coming days, various technical meetings between the social partners and the ministries concerned are planned in order to clarify certain details of the proposed measures.
The tripartite coordination committee will next meet on Thursday 31 March 2022.
