The second part of the Politmonitor survey delves into the primary concerns of Luxembourg residents.

The years go by, and the problems remain. As of 2024, it is evident that housing remains the paramount issue for Luxembourg residents.

According to the latest Politmonitor survey conducted by Ilres for RTL and Luxemburger Wort, housing affordability stands out as the most pressing problem in Luxembourg.

Currently, a significant majority, three out of four individuals surveyed (73%), identify housing as their top concern. This figure only marginally differs from the findings of the previous survey conducted in November 2022, where housing held the top spot for 75% of respondents.

The housing crisis manifests in multifaceted forms. On one hand, there is the issue of housing market inaccessibility due to soaring property prices. More recently, the market has further restricted access by making financing nearly unattainable. With escalating interest rates, the financial prerequisites for property acquisition in Luxembourg have skyrocketed. Affording a €1.5 million house now demands an extraordinary income. The fall in prices seen in 2023 has done little to change that, given the high interest rates.

Income disparity and social inequality: more lingering concerns

Beyond housing, Luxembourg residents express concerns about social inequality (56%), mobility (51%), and rising prices (50%).

There are indications of slight purchasing power improvements, attributed in part to price moderation. In fact, Luxembourg boasts one of Europe's lowest inflation rates. This can be largely attributed to governmental interventions such as the tripartite agreements of 2022 and 2023.

Addressing wealth disparities is paramount for the new government. In addition to grappling with the cost of living, the most eagerly awaited reforms include individual taxation and pledged initiatives to support housing and bolster incomes.

Mobility, a core issue

For both Luxembourg residents and cross-border commuters, mobility remains an enduring concern. Juggling work commitments and commuting demands, residents dedicate nearly 49 hours per week to their jobs, compared to just over 53 hours for cross-border workers.

The substantial time investment in commuting not only weighs heavily on workers but also raises concerns among employers. Prolonged commutes risk driving talent away from Luxembourg. Not to mention the discomfort due to congested roads and overcrowded public transportation, as well as the stress involved.

Rome wasn't built in a day, of course. Luxembourg has embarked on several ambitious projects to alleviate mobility woes, including the implementation of a tram system in Luxembourg City, expansion of the A3 motorway, development of a multimodal corridor on the A4, doubling of the Bettembourg-Luxembourg railway line, and introduction of new car parks and CFL lines.

Concerns not to be overlooked

While not as prominently cited as housing or mobility, several significant issues demand attention. Of particular note are two areas that have experienced significant declines in mentions: soaring energy prices (47%, down by 19 percentage points) and the consequences of climate change (45%, down by 12). The tripartite agreements have effectively managed energy costs, while fuel prices have partially receded following their surge in 2022.

The reduced concerns over inflation and the evolution of energy prices are reflected in respondents' assessments of their own financial situations, explained Ilres' Manon Breden: "When it comes to the question of how people assess their personal finances, we have returned to a rate comparable to May 2022, with 8 out of 10 people saying their personal situation is good. 15% say they are doing badly. We have noticed a tendency where people's assessments of their finances improve as they age, whereas households with children, especially single parents, tend to indicate their situation has worsened."

The diminished focus on environmental concerns was reflected at the ballot box in October 2023, with the decimation of the Green Party in the legislative elections.

Social cohesion (47%) remains a sensitive issue in Luxembourg. The recent implementation of the begging ban in the capital underscores the ongoing debate surrounding community living. Voters were also asked for their thoughts on the begging ban. 44% said they agreed with the controversial measure, while 51% said they disagreed with it. When asked whether they thought the government adhered to the laws in the implementation of the ban, just 33% said yes, while 44% said they believed the law had not been correctly followed.

The rise of extreme right-wing movements (46%), witnessed across several European nations, remains a source of concern for Luxembourg residents. Equally concerning is the sustainability of the pension system, a topic highlighted and addressed within the government's coalition programme. Projections paint a bleak picture: starting from 2027, Luxembourg's pension expenditure is projected to exceed contributions.

Other significant concerns include tax equity (41%), security, fairness within the education system, and the decline of the Luxembourgish language (39%). Additionally, issues such as the prevalence of mental health disorders in society, the impacts of artificial intelligence (a first-time mention in this Politmonitor survey), workplace safety, the economic situation, and the nation's energy security (in decline) warrant attention.

Generally, 56% of voters say they're satisfied with the government's work, while 26% rate the government as bad. When asked to rate individual measures, however, there is one in particular which the government has failed to deliver, according to the survey: "Respondents say the government is struggling to fighting poverty, as just 3 out of 10 gave them a good rating, while over half of people rated their work against poverty poorly. Unsurprisingly, this rate is even higher among people suffering from financial hardships."

*The Politmonitor poll was conducted in Luxembourg by Ilres, on behalf of RTL and Luxemburger Wort, among 1,007 Luxembourg residents between 4 and 14 March.