Following the meeting of the Government Council chaired by Prime Minister Luc Frieden on Friday 24 July 2026, the Luxembourg government approved a number of draft laws and regulations covering energy, housing, defence and other policy areas.
According to Luxembourg's Ministry of State, one of the key decisions was the approval of a draft law authorising a €150 million state contribution towards electricity network costs in 2027. The ministry noted that the measure follows a commitment announced during the 2025 State of the Nation address and is intended to reduce electricity network charges for households and businesses, similar to the support provided in 2026. The contribution will be financed through the Climate and Energy Fund and is expected to cover approximately 42% of regulated network costs next year.
The Government Council also approved two draft laws forming part of the "Booster fir de Wunnengsbau" ("Housing Construction Booster") package. According to the ministry, the measures aim to stimulate residential construction, facilitate access to home ownership and expand the supply of affordable housing. Among the proposals are changes to the tax regime for investment funds to encourage institutional investment in residential property, as well as the creation of a temporary tax credit for individuals purchasing newly built homes intended as their primary residence.
Another key decision concerned Luxembourg's participation in the European Union Military Assistance Mission in support of Ukraine (EUMAM Ukraine). The government approved a draft Grand Ducal regulation extending the deployment of Luxembourg Army personnel until 1 December 2028. The regulation also increases the maximum number of instructors deployed in each rotation from five to ten, reflecting the continued development of the EU training mission.
Among the other decisions, the Government Council approved state financial support for the construction of 122 affordable rental homes in Luxembourg City's Val Saint André district, endorsed a draft law creating a permanent legal exception allowing the wearing of protective face masks in specific circumstances, and approved new operational bonuses for members of the Grand Ducal Police and the Customs and Excise Agency.
