The European Commission's Semester Spring Package 2024 calls for significant reforms in Luxembourg, including aggressive tax planning measures, pension system sustainability, housing market improvements, and educational adaptations to better serve disadvantaged students.

On Wednesday, the European Commission presented its Semester Spring Package 2024, which is designed to provide policy guidance and enhance competitiveness and resilience in the bloc. In the document, the Commission called upon the Frieden government to tackle aggressive tax planning to ensure fair treatment of European taxpayers. The Commission further advises to tax interest income in a manner that prevents competitive disparities among companies.

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Another key issue highlighted is the sustainability of Luxembourg's pension system. The Commission recommends measures aimed at ensuring people work longer while also proposing limitations on early retirement options. Another area criticised by the Commission is the housing shortage, which it views as a competitive disadvantage for the economy. As a remedy, the Commission has recommended reforms to the property tax system and emphasised the need for extensive construction on state-owned land.

As for education, the European Commission says that teaching methods in the Grand Duchy need to be adapted to the needs of disadvantaged pupils, particularly those with a different native language. The curriculum, if unchanged, would continue to have negative effects on these pupils' results, the Commission finds.