Your Weekly Recap for 1–5 July.
Here are five things you should know at the end of this week:
- Existing home prices stabilise, new-builds struggle
- Luxembourg and South Korea deepen ties with new embassies
- Luxembourg announces Eurovision 2025 bid
- Keir Starmer's Labour wins UK general election
- Biden defiant as pressure mounts to abandon White House race
1. Existing home prices stabilise, new-builds struggle
Prices of existing homes in Luxembourg have stabilised after an 18-month decline, with increased market activity halting further price drops.
- Experts anticipate a potential modest increase in property prices, driven by adjusted prices aligning with buyers' purchasing power and global market rebounds.
- The new-build property market faces significant challenges, including price gaps, high interest rates, and uncertainty in delivery timelines, despite legislative efforts to streamline housing projects.
End of prolonged price drop – After experiencing significant declines over the past 18 months, the prices of existing homes in Luxembourg have stabilised. This change is attributed to an uptick in market activity, as evidenced by the 1,259 property sales recorded in the first quarter of 2024.
Although this figure is still below pre-crisis averages, it marks a positive shift from the previous downward trend. Experts suggest that this stabilisation indicates the end of the prolonged price drop in existing houses and flats.
Global rebound – With the stabilisation in place, there is optimism about a potential modest rise in property prices. Experts believe that prices have adjusted to better match the purchasing power of buyers and investors, which has increased market activity.
Spokespeople from the Luxembourg Institute of Socio-Economic Research (LISER) anticipate that, given the current inflation rate of 3.2%, a proportional rise in property prices over the next few years is plausible. This trend reflects a broader global rebound in markets despite prevailing high interest rates.
Sectorial challenges persist – Conversely, the new-build property market in Luxembourg faces significant challenges. Sales figures for new constructions have dropped sharply, with only 92 transactions recorded in the first quarter of 2024. High interest rates, uncertainty about delivery timelines, and a noticeable price gap between new and existing properties are key factors contributing to this stagnation.
Despite legislative efforts to streamline housing projects and boost production, the industry still struggles with sourcing adequate manpower to meet future demands, posing a considerable obstacle to revitalising the new-build sector.
2. Luxembourg and South Korea deepen ties with new embassies
© MAE, MESR
Luxembourg's Foreign Affairs Minister Xavier Bettel and Digitalisation and Research Minister Stéphanie Obertin on Wednesday inaugurated the country's new embassy in Seoul, enhancing bilateral relations with South Korea.
South Korea announced plans to open its own embassy in Luxembourg, highlighting the growing friendship between the two nations.
The ministers also attended the launch of an exhibition commemorating Luxembourg's 85 volunteers in the Korean War, emphasising Luxembourg's historical military contribution.
Strengthening ties – Luxembourg's top diplomat Xavier Bettel and Digitalisation and Research Minister Stéphanie Obertin inaugurated the new Luxembourg embassy in Seoul as part of their working visit to South Korea. This significant diplomatic move aims to strengthen the bilateral ties between Luxembourg and South Korea, fostering closer cooperation in various sectors, including economy and research.
Reciprocal relationship – During the inauguration, it was also announced that South Korea plans to reciprocate by opening its own embassy in Luxembourg. Establishing a diplomatic presence in each other's capitals will facilitate better communication, cooperation, and cultural exchange, paving the way for more robust economic collaboration.
Historical allies – Additionally, the ministers participated in the opening of the exhibition 'Luxembourg's Volunteers in the Korean War', curated by the National Museum of Military History in Diekirch and held at the War Memorial in Seoul. This exhibition honours the 85 Luxembourg soldiers who fought alongside South Korean forces against North Korea in the early 1950s, highlighting their bravery and sacrifice, with 16 wounded and two losing their lives. It serves as a poignant reminder of Luxembourg's only military intervention after 1945 where it sent soldiers to the front, strengthening historical ties and mutual respect between the two nations.
3. Luxembourg announces Eurovision 2025 bid
Luxembourg has announced its participation in the Eurovision Song Contest 2025 in Switzerland and opened registrations for interested singers.
The Luxembourg Song Contest will select the winning song and artist to represent Luxembourg, following a successful return to Eurovision in 2024.
Candidates must meet specific criteria, including age, nationality or residency, and availability, with song requirements also outlined.
Back for more – Luxembourg has officially confirmed its participation in the Eurovision Song Contest 2025, set to take place in Switzerland. Registrations are now open for singers who wish to represent the country. This marks the continuation of Luxembourg's Eurovision journey following the successful return to the contest this year after a 31-year hiatus.
LSC returns – Submitted songs must be original compositions, no longer than three minutes, and not previously published or performed before 1 September 2024. Each artist or group can enter up to five songs, with the language of the song being freely selectable. The Luxembourg Song Contest (LSC) will be held to choose the winning entry, which will then go on to represent Luxembourg at the Eurovision Song Contest 2025.
Participation criteria – To participate, candidates must be at least 16 years old by 1 January 2025, and either hold Luxembourg nationality, have lived in Luxembourg for three consecutive years, or be significantly involved in the Luxembourg cultural scene. Participants must also be available from November 2024 to May 2025 and capable of performing live on stage. If entering as a band or group, at least one member must meet these conditions.
4. Keir Starmer's Labour wins UK general election
© AFP
Keir Starmer's Labour party won a landslide victory in the UK general election, ending 14 years of Conservative rule and making Starmer the new prime minister.
The Labour party secured over 326 seats, with projections suggesting a 170-seat majority, while the Conservatives experienced a historic low with only 131 seats.
Starmer promises a "decade of national renewal" focusing on economic growth, public service funding, and political integrity.
Labour back at the helm – Keir Starmer's Labour party achieved a significant landslide victory in the UK general election, which concluded 14 years of Conservative governance. This historic win positions Starmer as the new prime minister, following a campaign that promised substantial national change and renewal. The defeat was acknowledged by Conservative leader Rishi Sunak, who congratulated Starmer and accepted responsibility for the loss, marking a significant shift in British politics.
Shifts all around – Labour secured more than the required 326 seats to form a majority government, with projections indicating a commanding 170-seat lead. This result contrasts sharply with the Conservatives' historic low of only 131 seats. The election also saw the rise of Nigel Farage's Reform UK party, which split the right-wing vote, and the Liberal Democrats overtaking the Scottish National Party as the third-largest party in Parliament.
Restoring public trust – As the new prime minister, Keir Starmer faces the challenging task of addressing economic stagnation, underfunded public services, and financial pressures on households. His campaign emphasised a return to political integrity following years of Conservative-led scandals and instability. Starmer's victory speech highlighted a commitment to prioritising the country over party interests, promising a "decade of national renewal" to restore public trust and improve governance.
5. Biden defiant as pressure mounts to abandon White House race
© AFP
President Joe Biden faces significant fallout from his recent debate performance against Donald Trump, causing concerns within the Democratic Party about his ability to lead and prompting calls for him to step aside.
Despite winning support from Democratic governors, Biden's acknowledgment of needing more sleep and reducing evening events has intensified speculation about his capacity to continue his campaign.
Biden plans to reset his campaign with a crucial televised interview on Friday to address doubts and reassure his party, while Trump continues to challenge him for another debate.
Pressure mounts – US President Joe Biden's recent debate performance against Donald Trump has been widely criticised, leading to a crisis within the Democratic Party. Biden struggled with clear communication during the debate, which has heightened concerns about his age and stamina. This has prompted a growing number of Democrats, including some prominent lawmakers and major newspaper editorial boards, to question his ability to effectively lead and to call for him to step aside in favour of a stronger candidate.
Admissions and premonitions – Despite the backlash, Biden has managed to secure the backing of Democratic governors who met with him in an emergency meeting. However, his admission to needing more sleep and plans to curtail public events after 8pm have only fuelled further speculation about his physical and mental fitness to continue his campaign. This revelation has intensified discussions within the party about potentially replacing him as the Democratic nominee for the 2024 election.
Kickstarting the campaign – To address these mounting concerns and reset his campaign, Biden has scheduled a high-stakes televised interview with ABC's George Stephanopoulos. This interview is seen as a critical opportunity for Biden to dispel doubts about his health and leadership capabilities. The anticipation for this interview is high, as it will be a key moment for Biden to demonstrate his ability to articulate his vision and maintain the confidence of his party and the public. Meanwhile, Donald Trump has continued to challenge Biden, calling for another debate to further test his competence.
The best of... 📚
- Business & Tech – Threads, Meta's alternative to X, has celebrated its first anniversary by reaching 175 million monthly users, a milestone that highlights its rapid rise and continued growth in the competitive social media landscape.
- Science & Environment – Nearly a quarter of a million people were evacuated in eastern China as rainstorms lashed swathes of the country and caused the Yangtze and other rivers to swell, state media reported Wednesday.
- Entertainment – Superstar rapper and music industry mogul Sean Combs has been sued by a former adult film star for sexual assault and sex trafficking, court filings showed.
- Sport – Mark Cavendish made Tour de France history on Wednesday to eclipse Eddy Merckx and win a record 35th stage, the British veteran then pledging that his love affair with the great race was far from finished.
And in case you missed it... ⚠️
- Military – Luxembourg's government has extended its participation in the EU mission to train Ukrainian soldiers until 2025, while also deploying troops to Mozambique
- Mobility – The train connection between Trier and Luxembourg is being further expanded to simplify commuting across the border by adding a line that had previously only been available for freight traffic.
- No happy end after all – Luxembourg's Veterinary and Food Administration announced Wednesday that Sammy, the wallaby who eluded capture for two weeks, died from a rare bacterial infection.
- Travel – Luxair is set to launch a new flight route to Rotterdam in October, enhancing travel options to the Netherlands with five weekly connections to the Dutch port city.
Your Weekly Recap is published every Friday at noon. Read earlier versions.
