'People don't realise how quickly everything could fall apart'

Times are tough and the future is uncertain: This is one thing that all three guests of the latest Background roundtable hosted by our colleagues from RTL Radio agreed on.

Young entrepreneur Lola Valerius stressed that the recent price hikes make it anything but easy to ensure that a business remains profitable. Valerius stated that she is currently facing increases between 25 and 30% for her raw materials, which include butter, sugar, and cream. Adjusting prices "for the umpteenth time" in a year and passing on the difference to customers is also not an option, she noted. Inevitably, the price increases therefore chip away at her margins, with the result that some of her products are no longer profitable, she said.

René Diederich, head of an agri-distribution company, shared Valerius' grievances stressed that prices had skyrocketed in a relatively short period of time. It's difficult to predict what's ahead, Diederich stated, adding that people "don't realise how quickly everything could fall apart."

'Poverty makes people sick'

Rob Arend, the president of Resonord, a major social office covering nine municipalities in northern Luxembourg, emphasised that above all, those earning minimum wage "are definitely struggling to pay their bills." Arend also made a point of highlighting that the majority of those receiving the Social Inclusion Income (REVIS) have jobs. Resonord provides help to "a lot of women, mainly single parents," who need financial support despite having jobs due to rising costs. However, these funds must be repaid at some point, "which means that even if they manage to dig themselves out of that hole, they have virtually no opportunity of making a life for themselves."

Most applications sent to Resonord are related to housing. Arend stated that there is no doubt that REVIS recipients are increasingly relocating to northern Luxembourg since housing there is still more affordable than in the rest of the country. "It's horrifying to see, say, a couple with three children living in a 45m² flat," Arend said dejectedly. The Resonord president has no idea how "the growth problem" could ever be solved but called for more selective aids "because poverty makes people sick."

Negative views towards employers and the self-employed

Valerius criticised the unfavourable attitude towards employers which she claims is prevalent in Luxembourg's society. "It's important for people to understand that employers don't hop on a private jet to the French Riviera every weekend," she said, "we work 12, 14, 16 hours a day to ensure that the business is doing as well as it can." The young chocolatier from Esch-sur-Alzette stressed that she has never regretted her choice and is "completely happy" as a self-employed worker. Valerius would also encourage others to make that same choice, "even if it's not always easy." According to her, it is important for society to understand that there are not just big companies, "but a lot of small business that have to fight hard."

The need for better entryways into skilled crafts in Luxembourg

Diederich agreed with Valerius' statements, but also criticised the skilled crafts sector's place in the Grand Duchy's educational system. He specifically condemns statements such as "you didn't do well in school, so now you should learn a trade," stressing that "we need people with a solid education who understand the complexity of the profession, which is only increasing."

Valerius, who went to France to complete her vocational training after receiving a bachelor's degree in architecture, also criticised the Luxembourgish model. She explained that she chose France for her re-orientation since she could complete it in six months. In addition, the French state paid her school expenses, and she was eligible for unemployment benefits. In Luxembourg, on the other hand, aspiring craftspeople have to work in a business for three years at minimum wage, she lamented.

'The state is a major competitor'

All three guests agreed that the state is a major competition for artisans and called for improvements in that area. Another issue on which everyone agreed was the need to lessen the administrative burden. The guests expressed regret that administrative procedures are becoming increasingly difficult to complete. This also entails enormous costs, which represent a significant challenge to small businesses in particular.