On Wednesday afternoon, Prime Minister Luc Frieden delivered his inaugural speech to the newly-formed Chamber of Deputies, highlighting key policy aspects ranging from taxation to social life.
Reflecting on the recent legislative elections, Frieden underscored the nation's preference for a "strong centrist coalition." He committed to uniting citizens through the government's work, emphasising that the responsibility extends beyond one person to encompass the entire team and Parliament. Frieden expressed his dedication to "strengthening" the country over the next five years.
Addressing non-Luxembourgish nationals living and working in the country, Frieden assured them that their voices would be heard. He pledged to seek ways to engage with this population, recognising their "significant contributions" to the social and economic development of Luxembourg.
Gratitude to past generations and commitment to democratic traditions
Frieden extended gratitude to past generations that laid the democratic foundation of the Grand Duchy. He acknowledged the transition to a new coalition, vowing to build upon the achievements of previous legislatures. The Prime Minister thanked outgoing ministers and MPs for their commitment, emphasising the government's respect for institutional and socio-political changes in recent years.
"We can be proud of our democracy, which has been without fault both during and after the elections, which is not always a given when you look at what is happening in the world," Frieden said.
Commitment to peace, freedom, and dialogue
Frieden outlined the government's commitment to peace, freedom, and dialogue between cultures and nations. He recognised the challenges of climate change, digitalisation, and artificial intelligence, stressing that these issues "will be taken very seriously" by the government. The implementation of changes will be gradual, with public consultation and "clear explanations" to facilitate a smooth transition. Frieden stressed the government's role in "enlightening, convincing, and supporting" individuals and businesses, especially in the realms of climate and biodiversity, as well as the transformative impact of artificial intelligence on society in the coming years.
'A better way of living together in a modern Luxembourg'
"It's more than just a slogan; modernisation will be actively pursued in areas where the country still needs to make progress," Frieden said. The focus includes bolstering digitalisation, advancing renewable energies, and improving healthcare as well as infrastructure. The overarching goal is to strengthen social cohesion, combat poverty, and ensure access to decent housing for all citizens, Frieden declared.
Job market and economic opportunities
Frieden expressed a vision for a healthy job market with new opportunities while ensuring job security for those already employed in Luxembourg. The government aims to strike a balance between creating new positions and preserving existing employment under optimal conditions.
Purchasing power and housing access
Concrete measures are slated for 2024 to facilitate housing access, particularly for young people. In addition, the government wants to address mortgage conditions.
Strengthening purchasing power is a priority, with tax relief scheduled "for everyone" starting 1 January 2024. Frieden affirmed the government's commitment to delivering on this promise and expressed a desire to help the middle classes through "appropriate measures."
Maintaining attractiveness for foreign workers
Luxembourg "must remain attractive" to foreigners who want to work in the Grand Duchy, while maintaining the existing upward social mobility. To achieve this, Frieden announced that there will be no wealth tax for individuals and no inheritance tax in the first instance.
Proposal for a single tax class
Looking ahead, the government sets an ambitious target for the next two years: presenting a proposal for a single tax class. Frieden acknowledged the substantial work involved but highlighted the importance of this initiative in shaping the economic and fiscal landscape of Luxembourg.
On Thursday, lawmakers will have time to thoroughly debate individual points of the coalition agreement.
Luxembourg's parliament has been complete since 21 MPs were sworn in on Tuesday. Claude Wiseler from the Christian Social People's Party (CSV) has meanwhile taken on the role of Chamber president.
