
© Maurice Fick / RTL
The Chamber of Deputies approved a contentious draft bill with a mix of fiscal and non-fiscal measures aimed at revitalising Luxembourg's housing and construction sector, despite criticisms from several MPs about its potential impact on affordability and social equity.
MPs in the Chamber of Deputies have approved a draft bill aimed at addressing current challenges in the housing and construction sector. The measure package passed on Tuesday with 42 votes in favour and 18 against.
According to MP Diane Adehm of the Christian Social People's Party (CSV), the co-rapporteur of the bill, the package includes a mix of fiscal and non-fiscal measures affecting private individuals, the construction sector, and investors.
However, MP Paulette Lenert of the Luxembourg Socialist Workers' Party (LSAP) criticised the measures, arguing that while they would invigorate the housing market, the package represents a step in the wrong direction overall. Lenert pointed out that past government strategies focusing heavily on investment failed to create affordable housing: "I think we're doing the wrong thing. Once again, we will incentivise investment without imposing many conditions. The government is distributing significant tax breaks without resulting in more affordable housing or helping those who struggle to find affordable homes. This measure package ensures that money goes where money already is."
MP François Bausch of The Greens (déi gréng) echoed these criticisms, stating that the draft bill does not benefit those in genuine need: "The spirit of this law is to serve those who have already made massive profits over the past ten years and want to continue doing so."
Minister of Housing Claude Meisch of the Democratic Party (DP) rejected the criticisms, noting that "times have changed." He argued that high interest rates have led to a drop in demand and emphasised that the measures are clearly social in nature: "For every euro spent this year through fiscal measures to stimulate the market and secure jobs in the construction industry, €3 are set aside to buy up affordable housing on the market in the short term."
Meisch also stressed the need for a proactive land policy, highlighting that previous governments had failed to make progress in this area.
MP Marc Goergen of the Pirate Party criticised the measures for not doing enough for tenants. "At least it's better than simply opposing it and doing nothing," Goergen remarked. He added that he is "confident" more measures will follow.
Minister Meisch reiterated that this law is "just the beginning" of a broader offensive in the area of housing.