© Didier Weber
According to Fokus, the wage indexation system must be preserved, but the index should become "social," and households should be supported with an energy allowance over the winter months.
On Tuesday morning, Fokus, the new party launched by the former president of the Christian Social People's Party (CSV), Frank Engel, presented its policy proposals ahead of the new parliamentary year.
Fokus was founded in February 2022. According to the latest polls, the party currently holds around 3% of voting intentions. Until 2023, the party wants to double that percentage and aims at securing at least two seats in the Chamber of Deputies.
Overall, Fokus advocates for a more just society and proposes major reforms for the country as well as plans "that go further," according to Party President Marc Ruppert.
On Tuesday, the party presented its idea of a social wage indexation system in detail. While the Luxembourgish indexation system must be preserved and no indexation should be cancelled, Fokus argues that the way the indexations are paid out must be changed because the current system "is not social". Secretary General Gary Kneip pointed out that those with higher salaries currently benefit from exponential growth, something which the party finds "irksome". The current system aggravates inequalities, according to Fokus.
Under the social indexation system proposed by Fokus, those with lower salaries would see their wages increase by over 3%, the party representatives argue. Over 90% of residents would receive more money than they do now, while those with annual salaries exceeding €250,000 would receive nothing.
Fokus proposes the creation of a mutual fund to accomplish this. Every time a wage indexation is triggered, all employers would have to make a 2.5% contribution, which would then be allocated in a more equitable manner. In difficult times, such as the current energy crisis, Fokus suggests that the mutual fund be subsidised by the state.
Fokus, like the Pirate Party, advocates for an energy allowance as an emergency relief measure, according to Party Spokesman Frank Engel. Fokus suggests either a monthly payment of €100 to €150 or an annual payment of four figures. According to party representatives, this should not be an issue because "the state already knows how to do a bank transfer, seeing as the family allowance is already paid in this manner."
The party also sees no reason why the government would not adjust the tax table for inflation, arguing that "providing relief to the people is exactly the right message to send". Fokus also dismisses Minister of Finance Yuriko Backes' concerns that such a policy would cost €600 million per year, pointing out that tax breaks "have always paid off in the long run". To support the population, the state also has the option of borrowing money, "which is not a crime," according to Fokus.