Your Weekly Recap for 13–17 May.
Here are five things you should know at the end of this week:
- Lawmakers pass housing and construction draft bill
- Chamber to pressure France over Cattenom nuclear power plant extension
- Encevo forecasts price hikes for electricity and gas
- Slovak PM Robert Fico critically wounded in shooting
- Dutch parties reach deal to form government
1. Chamber passes housing and construction draft bill
The Chamber of Deputies approved a draft bill with fiscal and non-fiscal measures to boost the housing and construction sector, passing with 42 votes in favour and 18 against.
- Critics, including MPs and former ministers Paulette Lenert and François Bausch, argue the bill benefits investors and the wealthy without addressing the need for affordable housing.
- Housing Minister Claude Meisch defended the bill, highlighting high interest rates and the social nature of the measures, and emphasised that this is the start of a broader housing strategy.
Draft bill passed – The Chamber of Deputies approved a draft bill aimed at revitalising the housing and construction sector. The bill, which includes a mix of fiscal and non-fiscal measures, received significant support, passing with 42 votes in favour and 18 against.
The package is designed to address current challenges within the sector by providing incentives to private individuals, the construction industry, and investors, intending to stimulate the market and secure jobs.
Criticism – Despite its approval, the bill faced substantial criticism from several MPs who argue it falls short in promoting social equity and affordability.
MP Paulette Lenert of the Luxembourg Socialist Workers' Party (LSAP) highlighted that similar investment-heavy strategies in the past have failed to produce affordable housing and criticised the bill for providing tax breaks without sufficient conditions to ensure affordability.
MP François Bausch of The Greens also expressed concerns, stating that the bill primarily benefits those who have already profited significantly, rather than addressing the needs of those struggling with housing affordability.
A step in the right direction – Housing Minister Claude Meisch of the Democratic Party (DP) defended the bill against these criticisms, pointing out that the current economic climate, marked by high interest rates, necessitates such measures. He emphasised the social nature of the bill, stating that for every euro spent on stimulating the market, three euros are allocated for purchasing affordable housing.
Meisch also stressed the importance of a proactive land policy, which he believes has been neglected by previous governments. MP Marc Goergen of the Pirate Party acknowledged the bill's shortcomings for tenants but expressed optimism that it marks the beginning of a more comprehensive housing policy.
2. Chamber to pressure France over Cattenom nuclear power plant extension
© AFP
The parliamentary committee this week discussed the operating time extension for the Cattenom nuclear power plant, which was originally set to operate for 40 years and is now nearing the end of that period.
Most political parties are pushing to pressure France to close Cattenom, similar to the closure of the Fessenheim plant, though French President Macron is likely to focus on nuclear expansion.
The committee also addressed energy efficiency, with Luxembourg unlikely to participate in the EU's increased targets due to short-term voting capacity.
The clock is ticking – The parliamentary committee has addressed the issue of extending the operating time for the Cattenom nuclear power plant, which began operations in the 1980s and was initially intended to run for 40 years. As this period is coming to an end, discussions are underway regarding its future.
The Cattenom plant, located just across the French border, is now the twelfth largest nuclear power plant in the world, and its potential extension has significant implications for the region.
Closure in doubt – The Greens, led by MP François Bausch, along with most other political parties, are advocating for applying pressure on France to close the Cattenom plant, similar to the closure of the Fessenheim plant, which was influenced by pressure from Baden-Württemberg.
Environmental Minister Serge Wilmes emphasised Luxembourg's strong political stance on the issue, but expressed doubts that French President Emmanuel Macron would agree to close Cattenom, as France is currently focusing on expanding its nuclear capabilities.
This reflects a shift from the previous administration under François Hollande, which negotiated the closure of Fessenheim amid heightened concerns following the Fukushima disaster.
Energy goals – In addition to the nuclear plant discussion, the committee also covered topics related to energy efficiency. The European Union is planning to raise energy efficiency targets for member states with ambitious goals, but Luxembourg is unlikely to meet these new targets in the short term due to limited voting capacity.
3. Encevo forecasts price hikes for electricity and gas
The National Institute of Statistics and Economic Studies (STATEC) projects a steep 60% rise in electricity prices and a 17% increase in gas prices by 2025, a forecast corroborated by Encevo's General Director, Claude Seywert.
Encevo's medium-term strategy includes significant investments in renewable energy sources like wind, solar, and hydrogen to strengthen its market position and infrastructure.
Encevo experienced sustainable growth in 2023, with a net profit of €171 million and revenues exceeding €5 billion, driven by increased investments in network infrastructure and renewable energies.
Forecast confirmed – The National Institute of Statistics and Economic Studies (STATEC) has projected a significant 60% rise in electricity prices and a 17% increase in gas prices by 2025. Encevo's General Director, Claude Seywert, this week confirmed these forecasts, noting that while gas prices would see minimal changes, electricity consumers could face substantial increases ranging between 40-50% if no subsidies or phase-out strategies are implemented.
This anticipated price hike underscores the potential financial impact on consumers following the lifting of price caps.
Future aspirations – Encevo's medium-term strategy places a strong emphasis on expanding its renewable energy portfolio, with significant investments in wind and solar energy projects, both within the national market and the Greater Region.
The company is also exploring the role of hydrogen as a key component of its future energy mix. These initiatives are aimed at reducing dependency on traditional energy sources, enhancing sustainability, and positioning Encevo at the forefront of the transition to a more renewable and resilient energy infrastructure.
Robust market position – Encevo experienced sustainable growth in 2023, highlighted by a net profit increase to €171 million and revenues climbing by 1.6% to surpass €5 billion. This financial success was underpinned by record-high investments of €336 million, predominantly channelled into enhancing network infrastructure and advancing renewable energy projects.
The robust financial performance enabled Encevo to distribute dividends to its shareholders, reflecting the company's solid market position and strategic investments.
4. Slovak PM Robert Fico critically wounded in shooting
© AFP
Slovak Prime Minister Robert Fico is in stable but serious condition after being shot multiple times in a politically motivated attack in Handlova, just weeks before the European parliament elections.
A 71-year-old writer, detained as the suspect, has a history of anti-violence advocacy but expressed no personal hatred towards Fico, according to his son.
The shooting has heightened fears of further political violence in Slovakia, a nation already deeply divided and facing growing tensions.
Serious condition – Slovak Prime Minister Robert Fico's condition has stabilised but remains serious after a shooting incident in Handlova, described by the government as a political assault. The attack occurred as Fico was engaging with the public after a meeting, and he underwent a five-hour surgery at Banska Bystrica hospital.
The incident has drawn global condemnation and raised concerns about increasing political polarisation and potential violence, especially with the European parliament elections approaching.
Motives in question – The suspect, a 71-year-old writer from Levice, was identified and detained at the scene. Known for founding the DUHA Literary Club and his involvement in anti-violence initiatives, he has no history of aggression despite holding a legally registered firearm.
His son expressed confusion over his father's actions, noting that while his father did not support Fico politically, there was no indication of personal animosity that could have motivated the attack.
Breaking point – The attack on Fico has exacerbated fears of political violence in Slovakia, a country already experiencing significant political tension. Analysts worry about further radicalisation among individuals and politicians, with the attack seen as a potential catalyst for more violence. The incident has also highlighted the deep divisions within Slovak society, with citizens and political figures calling for an end to the hatred and polarisation that have marked recent political discourse.
5. Dutch parties reach deal to form government
Geert Wilders (PVV), Dilan Yesilgoz (VVD), Caroline van der Plas (BBB) and Pieter Omtzigt (NSC) during the presentation of the main lines agreement. / © Unknown
Geert Wilders' far-right PVV Freedom Party has formed a coalition government in the Netherlands after six months of negotiations, but Wilders will not be prime minister.
The coalition aims for a partially technocratic government and has agreed on strict anti-asylum policies, with aspirations to opt out of EU asylum rules similar to Denmark.
Former education and interior minister Ronald Plasterk is a leading contender for prime minister, and the coalition agreement includes considerations for moving the Dutch embassy in Israel to Jerusalem.
Deal reached – Geert Wilders' far-right PVV Freedom Party has successfully negotiated a coalition government in the Netherlands after six months of complex discussions, although Wilders himself will not serve as prime minister. This agreement marks a significant moment as it is the first time Wilders' party will participate in the Dutch government.
The negotiations were fraught with challenges, including opposition from within the coalition to Wilders' potential leadership, engendering his reluctant decision to step aside from his prime ministerial ambitions.
Asylum and immigration – The newly formed coalition plans to implement a partially technocratic government, with an equal mix of politicians and non-politicians, a model not seen in the Netherlands for over a century.
A major focus of the coalition agreement is on enacting the strictest anti-asylum policies in Dutch history, aiming to control immigration more rigorously. The coalition also intends to seek an opt-out from EU asylum policies, similar to the Danish model, although this process is expected to be lengthy and complex, requiring negotiations with the European Commission.
'Constructive' EU partner – Ronald Plasterk, a former education and interior minister, is currently the main candidate for the prime ministerial role, given his involvement in the coalition talks.
The agreement also includes a proposal to consider moving the Dutch embassy in Israel from Tel Aviv to Jerusalem, a highly sensitive issue due to its implications for Israeli-Palestinian relations.
Additionally, the coalition has committed to maintaining the Netherlands' role as a "constructive" EU partner and supporting Ukraine, while remaining flexible on climate goals if current policies do not yield the desired results.
The best of... 📚
- Business & Tech – Google on Tuesday said it would introduce AI-generated answers to online queries, in one of the biggest changes to its world leading search engine in 25 years.
- Science & Environment – New research in the journal Nature confirms that the northern hemisphere's summer of 2023 was the hottest in 2,000 years, driven by the release of greenhouse gases and surpassing historical temperature records.
- Entertainment – Taylor Swift's worldwide Eras Tour will boost the UK economy by almost £1 billion ($1.3 billion) as fans splash the cash to see the US music star, Barclays bank estimated Wednesday.
- Sport – FC Differdange made history by clinching their first-ever league title with a hard-fought 1-0 victory over local rivals Progrès Niederkorn on Monday night, securing their place in Luxembourg football lore.
And in case you missed it... ⚠️
- Archaeological find – Renovation work at Neumünster Abbey has uncovered human skeletons from the Middle Ages or the 16th and 17th centuries, likely from a cemetery connected to an ancient hospice, as reported by the National Institute for Archaeological Research.
- Grand Ducal Court announces – Princess Alexandra and her husband Nicolas Bagory became parents for the first time on Tuesday after the birth of their baby daughter.
- Civic engagement – The Parliamentary Petitions Committee voted to increase the signature requirement for public petitions to 5,500, up from the previous 4,500.
- Luxembourg City – The capital is set to buzz with excitement this spring and summer, as the City Skyliner returns to Place de la Constitution and football fans can watch the Euros at Glacis square.
Your Weekly Recap is published every Friday at noon. Read earlier versions.
