Another busy year has passed in Luxembourg (a bit more on this later) and the time has come to look at what 2025 has in store.
Political System
A historic moment for Luxembourg - as a parliamentary democracy in the form of a constitutional monarchy - was the swearing-in of the Hereditary Grand Duke, Prince Guillaume, as Lieutenant-Representative of his father, Grand Duke Henri, on 8 October 2024. The sixth lieutenancy since 1850, this was the first time that the Lieutenant-Representative took the oath before Luxembourg MPs in a public session; it also marked the start of the gradual transition of royal power in the Grand Duchy. Two months later, in his Christmas speech, Grand Duke Henri confirmed he would abdicate in autumn 2025 - after 25 years on the throne. Prince Guillaume and his wife, Princess Stéphanie, will thus succeed Grand Duke Henri and Grand Duchess Maria Teresa on 3 October 2025. In a nod to his abdication, the current Grand Duke centred his recent speech around hopes for the future generation. The accession of Prince Guillaume to the throne is sure to be an unmissable moment this year.
After a "double" election year in 2023, people in Luxembourg went to the polls again for the European elections in June 2024 (during what was dubbed a "super year" for global elections). 2024 also marked the first full year under the new CSV-DP government. Whilst certain policy decisions (e.g. begging ban, pension reform, response to Caritas embezzlement scandal) sparked debate, Luxembourg enjoyed political stability for the most part - in stark contrast to its neighbouring countries.
So, can we expect more continuity - or changes (more on this below) - in the Grand Duchy as the government continues to roll out its programme in 2025? And, beyond the national level, what impact (if any) will the second Trump presidency - and his choice for the next US Ambassador to Luxembourg, businesswoman Stacey Feinberg - have on the Grand Duchy, its financial centre, and its historic ties with the USA? And what about the political shift within Europe to the right?
Economy, Finance & Social Measures
The underlying message of the 2025 state budget, presented last autumn, was preparing Luxembourg for a "tomorrow for all" - thus focusing on the future, as Grand Duke Henri did in his Christmas speech.
Among the main changes expected in Luxembourg this year (not necessarily linked to the budget) include the new social minimum wage - rising to €2,637.79 per month for unskilled workers and to €3,165.35 for skilled workers, as of 1 January. Pensions (+1.6%) and social parameters also increased at the start of the new year. The next wage indexation, initially expected in late 2024, is now likely to take place in spring 2025 (depending on inflation).
Also new this year: an adjustment of the tax scale by 2.5 indexed bands; tax exemption for households earning up to €52,400 (gross) in 2025; tax relief for companies investing in the digital and/or environmental and energy transition; tripling of the energy allowance in 2025 (aimed at supporting vulnerable households during the energy price cap phase-out); tax credit equivalent (ECI) increased to €90 for beneficiaries of the basic flat rate allowance and for recipients of the allowance for severely disabled individuals; a 10% increase in the cost-of-living allowance; an increase in the social inclusion income (REVIS) and allowance for people with severe disabilities (RPGH) from end June 2025 (bill in progress).
In addition, the physical LuxTrust token for online payments and identification is no more - deactivated as of 31 December 2024, the token has been replaced by the LuxTrust mobile application as the primary authentication method.
Transport & Housing
The anticipated (and delayed) extension of the tram to Luxembourg Airport in Findel will finally open in 2025. The first tests on this tram line, linking the new “Héienhaff P+R” and “Findel Luxembourg-Airport” stops, took place in December 2024. Before this, the priority was the connection between Place de l’Etoile and Cloche d’Or (where various businesses as well as the national stadium are located). With the airport welcoming its five millionth passenger in late December 2024, this new connection is likely to be popular once it comes into service in March 2025.
Moreover, progress continues this year on the A3 motorway widening project, which launched back in spring 2022. The first section(s) are set to open in 2025 (with completion expected by 2030), depending on weather conditions.
In terms of housing, which remains a hot topic in Luxembourg, certain government measures to support the real estate market will continue until July 2025. These include the increased tax credit on notarial acts (Bëllegen Akt).
Education
As announced by the education minister last year, schools will implement stricter rules for mobile phone use among students. As part of the “Screen-Life-Balance” measure, smartphones will be completely banned in primary schools from Easter 2025. Teachers can choose to authorise electronic tablets for teaching purposes. In secondary schools, it will be mandatory from June 2025 to ensure a physical distance between students and mobile electronic (or similar) devices during class.
Moreover, fees at the University of Luxembourg will double for the 2025-2026 academic year (starting in September), from €200 to €400 per semester for all students. The €50 application fee is also increasing to €100 (still refunded if application successful).
Religion
Whilst Luxembourg is a secular state, it also possesses a historically strong Christian tradition. A big event in 2024 - for practising Catholics but also other members of society - was the official visit of Pope Francis. This marked the first papal visit to Luxembourg since that of Pope John Paul II in 1985. The Pope's off-the-cuff comment on Luxembourg's low fertility rate drew laughter and criticism in equal measure but the historic visit went off (mostly) without a hitch.
Pope Francis has proclaimed 2025 as "The Jubilee of Hope". The 2025 Jubilee Year for the Catholic Church officially began on 24 December 2024 and will continue until 6 January 2026. During his Luxembourg visit, he also kicked off the celebrations for another jubilee: the 400th anniversary of the start of devotion to Our Lady of Luxembourg, Comforter of the Afflicted (Notre Dame; Virgin Mary). The Marian Jubilee then officially began on 8 December and will end on 25 May 2025 with the Octave (Oktav) closing procession. Members of the public (not just practising Catholics) can also enjoy exhibitions, concerts, pilgrimages and various other activities in Luxembourg City.
Sports, Culture & Society
2024 saw thirteen athletes represent Luxembourg at the Summer Olympics, and two others at the Paralympics, in Paris. Paralympian Tom Habscheid took home bronze for the Grand Duchy in the Men’s Shot Put F63. Ahead of the games, in June 2024, the Olympic flame passed through Schengen, marking its second ever appearance in Luxembourg (after 1948).
Some sporting highlights this year include the 2026 FIFA World Cup qualifiers (football), in which Luxembourg will participate in autumn 2025 (September-November). After beating hosts New Zealand in the Davis Cup last September, Luxembourg's men's senior tennis team qualified for the World Group I play-offs for 2025. In February this year, they will go up against Lithuania in a home game at d'Coque. In other tennis news, the Luxembourg Open international tennis tournament is taking place in Esch-sur-Alzette, while the CMCM Indoor Meeting for athletics is being hosted at d'Coque around the same time. Luxembourg is also hosting its Euro Meet swimming event in late January/early February. 2025 is certainly shaping up to be another busy year in terms of sports!
Culture will also feature heavily, with the Luxembourg Song Contest returning to the Rockhal on 25 January - after Luxembourg made its Eurovision comeback last year. International acts such as Toto, Nothing But Thieves, Bullet for My Valentine, The Lumineers, Alanis Morissette and The Black Keys are also set to take the stage in Luxembourg in 2025.
Moreover, renovation works on the Prinzessin Marie-Astrid Europa ship (formerly known as MS Princesse Marie Astrid) and the European Museum in Schengen are expected to be completed this year (in spring and early summer, respectively) - right on time for the 40th anniversary of the Schengen Agreement.
Works are currently also ongoing on the Philharmonie Luxembourg, with the extension project expected to be completed in 2027. Similarly, the Cinémathèque renovation project is set to begin in 2026, although the cinema will be unavailable already from the third quarter of 2025. Further afield, Luxembourg will be showing the world what it has to offer at Expo 2025 Osaka in Japan.
In terms of philanthropy, perhaps the biggest scandal in Luxembourg in 2024 was the Caritas embezzlement case, the fallout of which has had an impact on the entire non-profit sector. Can charities win back the much-needed trust and funding of donors in 2025?
Asylum & Migration
Looking at asylum policy, the big news in 2024 was the temporary suspension of processing international protection (asylum) applications from Syrian nationals, in Luxembourg and elsewhere in Europe, following the fall of Bashar al-Assad's regime. But just how temporary is this decision? Might we see its reversal in 2025, as the evolving situation in Syria becomes clearer?
Whilst there is plenty to look forward to in Luxembourg this year, there are also quite a few questions that remain unanswered, particularly concerning global developments which may well have an impact on Luxembourg and its European neighbours. So, are we in for a year of change or of continuity (for better or worse)? And just how well prepared for the future are we (or will we be) in the Grand Duchy?
