Speaking about the tripartite agreement, Luc Frieden stated that while it is “good that it happened” since there is a need for “solidarity and union” in times of crisis, it is ultimately “a bit like giving first aid to a patient while ignoring the surgery they need.”
Luc Frieden deplores the lack of predictability for businesses and fears that additional wage indexations may be triggered. “We are in a very serious crisis. The next six months will be very tough for companies and for everyone,” the president of the Chamber of Commerce warned.
According to Frieden, “when wages increase, prices tend to increase with them.” This is “detrimental to competitiveness, especially for companies competing abroad,” he explained.
The former minister of finance therefore calls for structural reforms such as capping the index at three times the minimum wage. He also wonders how the state plans to fund a third wage indexation in 2023.
“Since the introduction of the euro, the state’s debt has never been as high as it is today,” Frieden criticised. The president of the Chamber of Commerce believes that the state should have built up reserves in the more prosperous years before the crisis. The former Christian Social People’s Party (CSV) politician also argued that the state is currently unable to adjust the tax table for inflation. Frieden noted that structural reforms are needed first, which would entail “discussing the funding of the pension system, a reform of the wage indexation scheme, and a reform to make public spending more efficient.”
Luc Frieden is also the chairman of the board of directors of the International Bank in Luxembourg (BIL). He confirmed that the bank still intends to sell its 13% stake in Luxair, but the timing has yet to be determined with the other shareholders.
