Prime Minister Luc Frieden discusses coalition priorities

Addressing concerns about potential austerity measures, Prime Minister Frieden clarified that while the coalition programme currently excludes such measures, it should not be misconstrued as a disregard for fiscal responsibility, emphasising the commitment of the Christian Social People's Party (CSV) and the Democratic Party (DP) to prudent public finances.

Frieden downplayed predictions given to him during coalition negotiations indicating a rapid increase in the national debt to over 30% in just two years. Frieden stated that the national debt could reach "29%, 30%, or 31% of GDP," as long as Luxembourg maintained its triple A rating. He assured that the government would explain its approach to rating agencies if needed.

Frieden acknowledged the potential for necessary action in response to unforeseen global changes. In the event of a crisis, "targeted measures" would be taken to assist those in need, Frieden assured. However, he emphasised the importance of considering "positive scenarios" if the goal is to bring the country forward.

Admitting current challenges on both economic and international fronts, Frieden expressed confidence in the government's "positive agenda." The Prime Minister outlined key strategies for economic growth, including tax relief, streamlined business procedures, and advancements in digitalisation. According to Frieden, these initiatives would boost the economy, create jobs, and improve overall well-being.

Contrary to the CSV's initial electoral programme, Frieden stated that the top tax rate would not increase. He defended adjustments to the tax table, asserting that social policy measures would prioritise support for those facing the greatest challenges. Frieden also noted that, when combined with social contributions and the solidarity tax, the current top tax rate was "already relatively high."

While rejecting the introduction of a wealth tax, Frieden indicated a willingness to reform the property tax, acknowledging the need to revise the legislative project tabled by former Minister of Home Affairs Taina Bofferding due to the Council of State's negative opinion.

"Those who have less are not necessarily better off if you take everything away from those who have more"

Highlighting their dedication to addressing poverty and inequality, the CSV and DP are focused on advancing housing construction, according to Prime Minister Luc Frieden. In particular, the government plans to streamline housing construction processes. Prime Minister Frieden defended proposed tax benefits for investments in rented accommodation or property loans, underlining the commitment to simplify associated procedures. He assured citizens of their right to object to construction projects, stressing Luxembourg's adherence to the rule of law. However, he acknowledged the potential for discussions on reducing the duration of certain procedures.

The new government is resolute in achieving climate targets outlined in the National Energy and Climate Plan (PNEC). Frieden aims to empower the government to reach these targets without resorting to "unpopular measures." He has even instructed the new Minister for the Environment, Serge Wilmes, to talk to his civil servants to encourage them to "change their state of mind." Frieden believes it to be more beneficial to foster collaborative problem-solving instead of obstructing projects, such as those related to photovoltaics.

Frieden asserted that he personally wrote his government statement, dispelling any concerns about external influence. While the metadata of the written speech, which was sent to editorial offices, listed the law firm "Elvinger Hoss Prussen" (EHP) as the author of the file, Frieden clarified that this is due to the fact he still uses a computer he was given by his former employer. He assured that the government agreement "was not co-authored by major law firms." During coalition negotiations, Frieden received letters "from various organisations," and some of their suggestions were incorporated into the programme. He added that "the other letters have not been forgotten."

Meetings with Macron and Von der Leyen

At the beginning of the interview, Frieden admitted to the initial challenges of navigating his new role. He described the experience as unfamiliar but acknowledged the substantial workload ahead, driven by his commitment to the "general interest."

Frieden announced a timetable for implementing the government programme and that the first legislative project, aimed at bolstering purchasing power, would be deliberated in the government council on Monday.

Looking ahead, Frieden's schedule for the upcoming week is marked by several important meetings. Among them are discussions with French President Emmanuel Macron and several other EU heads of government. In addition, he is set to meet with Ursula von der Leyen, the President of the European Commission.