Luxembourg, Belgium Extend Teleworking Agreement until end-March 2021

For his first visit abroad, Belgium's Deputy Prime Minister and Minister of Finance, Vincent Van Peteghem, visited Luxembourg on Tuesday 8 December 2020.

Minister Vincent Van Peteghem first met with Luxembourg's Prime Minister Xavier Bettel and Minister of Finance Pierre Gramegna at the Ministry of State, where they took stock of bilateral relations between Luxembourg and Belgium, as well as European current affairs. The Prime Minister and two finance ministers welcomed the excellent cooperation between the two countries within the framework of the Belgium-Luxembourg Economic Union (BLEU). They also discussed the preparations for the next intergovernmental meeting "Gäichel", which will take place in 2021.

Minister Vincent Van Peteghem then met with his Luxembourgish counterpart, Minister Pierre Gramegna, for a working meeting. The two finance ministers broadly agreed on several topics. They discussed the health and economic support measures put in place in each of the two countries in the context of the COVID-19 crisis, as well as the possibilities of ending the crisis in view of the prospect of the arrival of vaccines.

On the subject of bilateral relations within the framework of the BLEU, the ministers discussed excise duties as well as the situation of cross-border residents. They also examined the BLEU common budget and the accounts for previous years. They agreed to finalise the latter and to review the calculation methods for the coming years, with the objective of signing a corresponding agreement at the next Gäichel meeting.

Minister Pierre Gramegna commented: “The excellent neighbourly relations between our two countries are based on many common interests as well as on historic bonds of friendship between our peoples. In the years to come, our exchanges in the economic and financial fields are set to strengthen even further, within the framework of the BLEU, whose centenary we will be celebrating in 2021".

Back in May, Luxembourg and Belgium signed an agreement concerning taxation concerning the taxation of cross-border workers in the context of the COVID-19 pandemic. This agreement, extended twice, provides that the days during which cross-border workers are required to work from home due to coronavirus measures are not taken into account as days worked in their country of residence. In order to continue to contain the spread of the virus and ensure the safety of citizens, the two ministers have decided to extend this agreement until 31 March 2021.

Minister Pierre Gramegna stated: “This is excellent news, which gives tens of thousands of Belgian cross-border workers and their employers maximum legal certainty and greater predictability in the organisation of their schedule”.

Ministers Pierre Gramegna and Vincent Van Peteghem also exchanged views on the Belgian Benelux presidency in 2021, as well as European current affairs and more specifically the next steps in the completion of the Banking Union.

Finally, they took stock of the negotiations on the European budget and the future of the Stability and Growth Pact. Luxembourg's Finance Minister advocated a system that differentiates between operating expenses and investment expenses, as investments are considered essential to prepare European economies for the challenges of the future.