Your Weekly RecapWage indexation, Niger coup, and Trump indictment

Ian Pocervina
Your Weekly Recap for 31 July to 4 August.

Here are five things you should know at the end of this week:

  • Next wage indexation on the horizon in Luxembourg
  • Crops at risk of rot due to rain, say Luxembourg’s farmers
  • Luxembourg’s first co-working space for civil servants to open in Schieren
  • European countries repatriate nationals following coup in Niger
  • Trump pleads not guilty to election conspiracy charges

1. Next wage indexation on the horizon in Luxembourg

  • Despite the inflation slowdown in June, with underlying inflation dropping to 4.7%, the government has committed to compensating employers for the wage indexation, while employees will see the increase reflected in their pay slips.

Indexation anticipated - Luxembourg’s National Institute of Statistics and Economic Studies (STATEC) has recently announced that the country’s workforce will likely experience another wage indexation in the third quarter of 2023. This anticipated increase of 2.5% for both wages and pensions follows the recent introduction of an economic tax credit that already boosted wages and pensions.

This new indexation is the third of its kind for the year, showcasing the government’s commitment to maintaining wage growth in line with economic factors.

Third one this year - The wage indexation is expected to be triggered in August or September, aligning with STATEC’s projections that the index value will reach 988.75 points.

By the end of June, the half-yearly average had risen from 975.66 to 980.22 points. Once the indexation occurs, it will represent the third such increase in 2023, further supporting employees’ income.

Inflation in decline - In June, STATEC reported a slowdown in inflation, with prices rising by 3.2% year-on-year, and the underlying inflation, used to calculate long-term trends, dropped to 4.7%. This decrease was partly attributed to anticipated reductions in energy prices for 2023.

Even with this slowdown, the government has made a pledge to compensate employers for the wage indexation, assuring that the business sector will not bear the entire burden of the increase.

2. Crops at risk of rot due to rain, say Luxembourg’s farmers

  • Farmers are sounding the alarm as Luxembourg has experienced a two-month drought followed by weeks of prolonged rainfall.

  • The initial rainfall was beneficial for many crops such as grains, fruits, and vegetables, but continued precipitation may cause produce to rot or trees to become sick.

  • Owners of orchards and vineyards in Luxembourg are seeking dry weather for the harvest, as excess rain has led to surface water in fields and could negatively impact crops like apricots and lettuce.

Unpredictable conditions - Luxembourg’s weather over the past few years has been highly unpredictable, making it a challenge for farmers and producers to plan their crops effectively. The year 2021 experienced heavy rainfall, which was followed by a relatively dry 2022.

The current year, 2023, has been characterized by a two-month drought starting in May, followed by weeks of continuous rain.

From benefit to obstacle - When the rains arrived after the two-month drought, they were initially welcomed by farmers in Luxembourg as they helped nourish grains, fruits, and vegetables.

3. Luxembourg’s first co-working space for civil servants to open in Schieren

Increased flexibility - Luxembourg is taking a significant step towards enhancing workplace flexibility for its civil servants by opening the first government co-working space in Schieren this December. This innovative measure, first announced in 2021 by Prime Minister Xavier Bettel, will initially provide 850 employees from the Ministry for Digitalisation and the Ministry for Civil Service with a new working option.

As many as 70% of staff indicated interest in this alternative, reflecting a potential positive shift in improving employment quality and meeting modern work demands.

A boost for Schieren - The chosen location in Schieren for the co-working space is not merely about flexibility; it is also about boosting local economic activity and connectivity.

Situated just 50 meters from local train and bus stations and near major road and cycling lanes, the space is designed to reduce commuting time for civil servants.

With capacity for up to 22 employees, this project hopes to bring new life to Schieren by attracting more daily visitors, further benefiting restaurants, businesses, and supermarkets - as well as setting an example for decentralization from the capital.

Broader shift - This two-year pilot project in Schieren is part of a broader shift in Luxembourg towards flexible work arrangements. The government seeks to recognise the growing demand for teleworking, a trend accelerated by the pandemic.

While not everyone prefers this mode of working, there is a significant number of civil servants and prospective employees seeking such arrangements.

The government’s investment in this initiative, amounting to €12,500 per month in rent, underlines its commitment to staying competitive by adapting to the changing needs and expectations of the workforce.

4. European countries repatriate nationals following coup in Niger

© AFP

  • Following the recent coup in Niger, the new junta has threatened retaliation to any aggression, scrapped military pacts with France, and faces a deadline from ECOWAS to reverse the coup or face possible military intervention.

  • Protests across Niger have shown support for the coup leaders and increased anti-French sentiment, while President Bazoum has warned of potential regional consequences and appealed for international help.

  • European nations and the U.S. are evacuating their citizens and embassy personnel from Niger, adding to instability in the Sahel region, plagued by jihadist insurgency since 2012, and threatening Western anti-terrorism strategies.

Situation escalating - Niger has experienced a significant political upheaval following a recent coup that ousted President Mohamed Bazoum. The newly installed junta has responded with threats of immediate retaliation to any perceived aggression and has taken decisive diplomatic measures, such as scrapping military pacts with France and pulling ambassadors from various countries.

The Economic Community of West African States (ECOWAS) has given the junta a strict deadline to reverse the coup or face a possible military intervention. This ultimatum has further escalated tensions in the region, as regional military chiefs convene to discuss the situation, and other neighboring countries with recent coups have shown support for Niger’s junta.

Anti-French sentiments - Across Niger, thousands have rallied in support of the coup leaders, many of whom expressed strong anti-French sentiments. Some protesters were even seen brandishing Russian flags and chanting in favor of Russian influence in the region. This change in public sentiment is significant, reflecting a broader regional shift away from Western alignment.

Evacuations - The situation in Niger has prompted urgent action from European nations and the United States, as they begin evacuating their citizens and pulling back embassy personnel amid the escalating tensions. France alone has evacuated over 1,000 people from the country.

In the wake of the recent military coup in Niger, Luxembourg has successfully repatriated all its nationals from the country and frozen its cooperation aid, including a planned €145 million cooperation programme with Niger.

Luxembourg will continue to support seven NGOs and their local partners in Niger.

5. Trump pleads not guilty to election conspiracy charges

© AFP

  • Former president Donald Trump pleaded not guilty on Thursday to criminal charges that he conspired to overturn the results of the 2020 election and defraud the American people.

  • It is the third indictment that Trump faces this year, including the most serious charges against the former president to this day.

  • Despite the indictments, Trump remains the frontrunner to win the Republican nomination for the 2024 election.

Election interference - On Thursday, former President Donald Trump entered a not guilty plea to criminal charges accusing him of conspiring to overturn the results of the 2020 presidential election and defrauding the American people. This took place at the Washington courthouse where hundreds of Trump supporters had previously been convicted for their involvement in the 6 January Capitol attack.

Trump responded with a simple “not guilty” to the charges. This marks a significant legal challenge for Trump, connecting him directly to allegations of undermining the democratic process.

Raising the stakes - The indictment against Trump includes four criminal counts and was brought by special counsel Jack Smith. It comes in addition to two other criminal cases against the 77-year-old former president.

The new conspiracy charges raise the stakes for Trump’s political future, as he is seen as the frontrunner for the 2024 Republican presidential nomination. As these legal proceedings continue, they may disrupt or overshadow Trump’s potential election campaign, raising questions about his eligibility and support within the party.

No comment from the President - Security was tight during the hearing, and small groups of demonstrators, both for and against Trump, were present outside the courthouse.

Trump himself has lambasted the cases as a politically motivated “persecution,” framing them as an attack against his leadership in the Republican primary.

Meanwhile, President Joe Biden, when asked about following the arraignment, simply responded with a curt “No,” showing a reluctance to engage in the ongoing legal battle involving his predecessor.

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