Energy support measures to be decided at tripartite meeting

The government intends to focus on finding an agreement with social partners during the upcoming tripartite meeting. PM Bettel underlined that negotiations will be held behind close doors and that he is unwilling to speculate about measures – or their costs – at this point in time.

The first set of meetings are scheduled for 18 to 20 September.

In its simplest form, a tripartite is a series of formal meetings between the government, employers and trade unions or workers’ representatives. These meetings could concern a proposed legislative change which affects employment in one or several sectors, or a major decision by a company that will affect its workers, such as restructuring and lay-offs, or substantive changes to working conditions.

In terms of supply chain management and price evolutions, the Grand Duchy depends on a European solution. However, internal discussions have already been held and PM Bettel said that the government is willing to put regulations in place if the free market requires it.

Analysis: Bettel says little - but EU action is key to reining back energy costs

Minister Turmes elaborated on the situation of the European energy market. He referred to Spain as an example of a country that has already been forced to retract imprudent measures.

Furthermore, he explained that France is currently struggling with corrosion at many of its nuclear power plants. In Scandinavia, the lack of rain in recent months has also led to a decrease in energy production at hydroelectric power stations.

Since Luxembourg is importing 100% of its gas supplies and large portions of its electricity supplies, the ministers said that the Grand Duchy will continue advocating for open borders. Discussions with European partners are currently underway.

Read Knowledge Bite: Tripartite – the Luxembourg social model