The financial situation of Luxembourg's municipalities is stable, the Superior Council of Municipal Finances concluded on Tuesday.

The 2021 accounts of municipal trade taxes and the global municipal endowment fund has increased by €270 million on the previous year.

The total of €2.39 billion now places it above the record year of 2019, thus putting it back on its pre-pandemic trajectory, said the Ministry of the Interior in a statement.

"These numbers show that by today's accounts, municipal finances are resilient, managed to absorb the various crisis-related impacts fairly well and are well-positioned for the future, contingent on current developments on the international level," said Taina Bofferding, Minister for the Interior.

The Ministry continues to offer financial advice to entities in the municipal sector, as over the last two years.