'I am still motivated to continue serving Luxembourg's residents', says Xavier Bettel

In a wide-ranging interview, Bettel also stated that he "would have preferred" to spend the €5.5 billion in economic aid during the pandemic and energy crisis differently.

However, Bettel stands by his government's decision, stressing that the financial aid was "necessary" and allowed Luxembourg's economy to recover faster than those of other European nations.

In response to the opposition's criticism of the draft budget 2023, the prime minister wondered what the opposition parties "would have done differently," a question to which he has "yet to receive an answer," Bettel added.

'We must make efforts to diversify the economy'

While the politician from the Democratic Party (DP) acknowledged that public debt has continued to rise in recent years regardless of the current crises, Bettel argued that the money "was invested in the people and the country."

As an example, he pointed out that investments in the environmental sector have more than doubled to around €1.3 billion. The government also invested roughly €1 billion in housing projects, "all things that are important for the future," according to the prime minister.

The prime minister stated that he understands those who criticise the lengthy administrative procedures during construction projects. However, we live "in a state under the rule of law," and people "have to retain the right to oppose projects," Bettel stressed. In addition, these procedures involve numerous checks and that "simply takes time."

To ensure the country's prosperity in the future, the government must make efforts to diversify the economy, such as by funding space-related projects, according to Bettel.

'Irresponsible' to finance tax cuts with debt

The banking and financial sector, according to the prime minister, is Luxembourg's cash cow, accounting for one-third of the wealth created each year. Bettel believes that this is "the only way to support the social system," and that Luxembourg must remain attractive to this industry as a result.

According to Bettel, taking on debt to finance tax cuts is "not responsible," which is why it was ultimately not possible to implement the tax reform announced in the coalition agreement.

Nonetheless, the prime minister agreed that the tax system must become "more just," and stated that a tax reform will be implemented as soon as possible, i.e., when the state finances allow for it.

Regarding the self-imposed limit of 30% of national debt in relation to GDP, the prime minister stated that he is "not a fetishist," but that it would be irresponsible to go far beyond this level. Bettel stated that he would not want to be responsible for the country falling back into poverty.

Government must take decisions 'with the future in mind'

On the topic of energy, the prime minister stated that he has "a lot of faith" in the population and businesses to save as much energy as possible despite the price cap. The package of measures that the government passed to reduce energy costs for residents, however, is primarily intended to push inflation down, according to Bettel.

Making solar panels mandatory on new buildings is one of the planned measures to promote sustainable energy in Luxembourg. Bettel described the measure as "an important milestone" that has to be set today in order to reap the benefits in the future.

In general, the prime minister believes it is critical for the government to make decisions with the future in mind. For Bettel, this includes recruiting workers for the country's social offices. While it is obvious that these people "cannot all be hired today," it is still important "in order to prepare for the future."

National and municipal elections 2023

When asked about disagreements between the three majority parties, the DP, the Luxembourg Socialist Workers' Party (LSAP), and the Green Party (Déi Gréng), Bettel claimed that the governing coalition is working well together at the moment and the opposition "shouldn't try to conjure up a conflict that isn't there."

Xavier Bettel stated that he is still "motivated" to continue serving the residents of Luxembourg. According to Bettel, he has already turned down several other positions that were offered to hm because he believes it would be irresponsible "to just get up and leave" in times of crisis.

Read also: Christos Floros: Luxembourg heads to elections, are you ready?

If he were to run in the 2023 elections, he would probably want to remain prime minister, according to Bettel. However, the title "doesn't matter" to him, and he could see himself leading a different ministry as well.

Bettel stressed that his party will decide whether he will actually run, and that the next governing coalition will "depend on the voters."

If he does remain as prime minister, though, he will still be some way away from being the Grand Duchy's longest-serving holder of the office. That record belongs to Paul Eyschen, who served for 27 years around the turn of the 20th century.

Regarding the municipal elections in Luxembourg City, the prime minister hopes that current mayor Lydie Polfer will run for another mandate.

Bettel would consider it a "loss" for his government if his party colleague and current Minister for Family Affairs Corinne Cahen opted to run for mayor. But, in the end, "it is her choice to make," the prime minister added.