In conversation with RTL, Luxembourg's Prime Minister Luc Frieden has emphasised the urgency of a fully operational government to address construction woes while outlining tax reductions and economic measures to bolster growth during challenging geopolitical times.

In a first RTL interview since taking on the role of Prime Minister, Luc Frieden underlined the importance of having a fully functioning government in these "difficult geopolitical and macroeconomic times". The first session of the government council thus took place only six weeks after the election.

"We have problems in construction, in Ukraine, in the Middle East. The government has to become active and we negotiated intensively. We don't think that a coalition agreement has to retain every last detail of every law", noted Frieden when asked about the vagueness of the 209-page document.

The PM explained that the underlying policies of the coalition agreement are a combination of the election manifestos of the Christian Social People's Party (CSV) and the Democratic Party (DP).

"I want to be both a team player and a leader", stated Frieden in regard to his personal role in the new administration. He similarly highlighted the importance of consensus between the new ministers when tackling the implementation of the coalition agreement.

Taxes to be lowered

A universal lowering of taxes was part of the CSV's election promises and will be on the administration's agenda, explained Frieden: "I think that an adaptation of the tax rate by four wage indexations represents a substantial relief that will continue strengthening everyone's purchasing power."

The PM went on to describe tax policies as an important tool to both tackle housing issues and increase economic competitiveness. Furthermore, individual tax policies should be regarded as a whole, he stressed, and a number of additional measures are still to be introduced.

Construction to be stimulated

Frieden plans on holding a meeting between government, municipal, and trade representatives to discuss concrete measures for the housing sector.

One of the main goals here is to increase construction, according to the PM: "At a national level, we have to try to stimulate economic activity with greater purchasing power and other measures that we plan on implementing. We know that the economic situation is bad, but we believe that we can implement the measures on our agenda in the coming years."