Your Weekly Recap for 8–12 July.
Here are five things you should know at the end of this week:
- STATEC report places Luxembourg's average annual salary at nearly €76,000
- Chamber of Deputies approves rent and lease bill reform
- Ministry of Education says agreement with Science Center 'off the table' amid governance and billing discrepancies
- Left alliance holds off far right in France elections, lack of majority causes political deadlock
- Spain and England to face-off in Euro 2024 final
1. STATEC report places Luxembourg's average annual salary at nearly €76,000
On Tuesday STATEC released Luxembourg's salary figures for 2022, summarising the report with two main takeaways: the average salary was €75,919; and the median was €58,126, meaning half the employees earn less than that amount.
- Employees' education, position and activity sector have great impact in salary figures, with nationality and place of residence also playing an important role.
- The range of salaries is wide among the different sectors. Finance brings in the top figures, with the hospitality sector coming in at the bottom.
Average vs median – The National Institute of Statistics and Economic Studies (STATEC) has released its 2022 salary figures for Luxembourg.
The average gross annual salary in the country stands at €75,919. However, the median salary (the 'middle point' separating the lower and upper halves of a salary range) is notably lower at €58,126, indicating that half of the workforce earns €58,125 or less per year. From 2018 to 2022, salaries across Luxembourg's economy have increased by approximately 3.6%.
Education matters – Significant salary variations are evident based on education levels and industry sectors.
Individuals in managerial or high-ranking corporate positions earn the highest salaries, averaging €158,242 annually. In contrast, essential job roles offer salaries slightly over €40,000 per year. Education also plays a crucial role in determining salary levels. Those with a Master's degree or higher earn nearly €116,000 on average, while individuals without a secondary school diploma earn just under €44,000.
Regarding nationality split, resident Luxembourg nationals earn the most, with an average salary of just over €92,000 per year. Foreign residents earn an average of €78,747, and cross-border workers earn around €65,500.
'Looking for a man in finance' – Unsurprising for Luxembourg, on average, the highest salaries are found in the finance and insurance sectors, which offer an average of €113,018 per year. Education follows with €111,362, and the "specialised, scientific, and technical activities" sector offers just over €105,000.
The lowest average salaries are in the construction sector (€49,587), "administrative and support services" (€48,679), and hospitality (€40,461).
When considering median values, the education sector leads with €108,929 per year. This is followed by finance (€93,843) and public service (€92,708). The sectors with the lowest median salaries are commerce (€40,519), "administrative and support services" (€38,934), and hospitality (€34,589).
Read also: Luxembourg's pension reserves increased by almost 12% in 2023, according to the latest report published by CNAP, the national pension insurance fund.
2. Chamber of Deputies approves rent and lease bill reform
The Chamber of Deputies voted on Wednesday to approve the reform of the 2006 rent and lease bill. It had been proposed by former Housing Minister Henri Cox.
Among other things, the reform will impact security deposits and agency costs, as well as providing clearer legal frameworks for co-rentals and other situations.
The issue of rising rent has walked hand in hand with the housing crisis, but has remained problematic even after the stabilisation of house prices.
Proposed by Kox – The reform was approved by both the majority and opposition parties, except for the Left Party (Déi Lénk) which abstained.
The reform implements a number of changes proposed by former Green Party Housing Minister Henri Kox. However, his planned changes to the rent cap were scrapped - albeit not permanently, as the government parties approved a motion by the Luxembourg Socialist Workers' Party (LSAP) and the Green Party (déi gréng) to present new draft legislation in the Chamber of Deputies by the end of June 2025.
Minister of Housing Claude Meisch described the reform's passage as "a small step towards modernisation and tenant protection."
What changes? –Under the reform, the costs of agencies will now be shared between tenants and landlords, a departure from previous policy where tenants bore these costs alone.
The rental guarantee, often referred to as the deposit, has been reduced from a maximum of three months rent to two months. Clear guidelines are now in place for the return of this deposit upon lease termination, requiring landlords to refund half within one month if no significant damages are identified.
The reform also provides legal framework for co-rentals or shared apartments, and mandates that all rental agreements must be documented in writing, rendering verbal contracts legally invalid.
The concept of "luxury lodging", often abused as a way to avoid rent caps, will also be abolished.
Full press release (in French).
A turbulent market –Housing has been one of the more pressing issues in the Grand Duchy (and Europe), with both property acquisitions and rentals causing massive headaches. This reform aims to put some tenant protections in place, but the road could prove to be long and windy.
While the existing property market appears to be turning a corner, rentals have remained problematic. A second quarter analysis has reported a 4% increase in rents, in an unexpected rebound.
At the same time. social services responsible for rent subsidies appear to be overwhelmed by the number of requests, causing delays and uncertainty over a process that is already deemed to be complex.
3. Ministry of Education says agreement with Science Center 'off the table' amid governance and billing discrepancies
The Ministry of Education has seemingly closed the door for good on the relationship with the Luxembourg Science Center, which had been terminated last year due to irregularities surrounding the Center's president.
Along with the investigation by the Inspectorate of Finance (IGF) stemming from last year's issues, a recent audit by KPMG exposed a €1.9 million billing discrepancy, leaving the future of the Center in a cloud of uncertainty.
Among the alleged irregularities found in both investigations were the unsanctioned expansion of facilities, contracts awarded to president Nicolas Didier's private company and dubious veracity of billed hours.
No way back –The Ministry of Education terminated its agreement with the Science Center last year due to governance issues and has now responded to a new KPMG report highlighting billing discrepancies.
Education Minister Claude Meisch stated on Tuesday afternoon that "the matter is definitely off the table" regarding the Science Center case.
The audit report has not been made public. The Ministry of Education has received the final version and plans to discuss it in meetings next week before making further comments. Previous indications suggested doubts about the validity of certain invoices.
Invoice of reason –Last week, KPMG presented a final report on the Differdange Science Center and private company GGM11, owned by Nicolas Didier, the Center's president.
According to RTL sources, KPMG says they could not confirm the legitimacy of billed hours. In simple terms, this means that certain hours were invoiced without proof that they were actually worked.
A series of irregularities – In 2023, the IGF lodged a complaint with the public prosecutor's office regarding the relationship of both entities, and a final report concluded that Didier owed €730,000 to the institutions, among other irregularities.
As a measure to ensure the continuity of the Center's activities, the Ministry at the time proposed integrating GGM11's operations into the LSC, which is a registered non-profit association (ASBL). This integration would also facilitate State representation on the board of directors in the future.
KPMG's recent audit put the spotlight back on the complicated relationship between both entities.
The Science Center has until 17 July to implement a protocol of understanding with the Ministry of Education. This protocol specifies that board members cannot simultaneously hold director positions and receive salaries, as Didier did. They also cannot provide paid services, another issue identified with Didier's involvement.
In essence, this means that Didier can either hold a directorial or board member role, but not both simultaneously.
The future of the Science Center and the jobs associated with it now lies in the balance, and the decisions taken in the next few months could prove to be vital to their survival.
4. Left alliance holds off far right in France elections, lack of majority causes political deadlock
The left-wing New Popular Front (NFP) won most seats in Sunday's second-round of the legislative elections, beating President Emmanuel Macron's centrists and Marine Le Pen's far-right National Rally (RN).
President Macron claimed "nobody won" and suggested a broad coalition government to break the political deadlock caused by a lack of majority by any single parliamentary force.
Macron is facing strong backlash from left-wing parties, who accuse the president of failing to "respect the vote of the French people".
The 'snap' –Macron had dissolved the National Assembly and called the snap legislative elections with the intention of clarifying the political landscape of the country, following the results of June's European Parliament elections which saw a massive rise of the far-right National Rally (RN).
French voters turned out en masse for the historic elections, but Macron's decision would ultimately leave France in a political vacuum. Sunday's results put the Left alliance at the top; however, the lack of parliamentary majority failed to clear the path to a new government.
Figure it out among yourselves –Macron put responsibility on parliament to negotiate a broad coalition reflecting France's "republican institutions" to break the stalemate following the inconclusive snap election.
"Nobody won," Macron said in a written message to voters published in French regional newspapers about the election.
"I am asking all political forces who recognise themselves in the republican institutions, the rule of law, parliamentary democracy, a European orientation and the defence of France's independence, to start a sincere and fair dialogue to build a solid, and by definition pluralist, majority", Macron said.
The formulation appeared designed to exclude Marine Le Pen's far-right RN party, but also implicitly far-left firebrand Jean-Luc Melenchon's France Unbowed (LFI), a big portion of the left-wing New Popular Front (NFP) alliance.
Under fire –Following the President's call for a coalition, the French left blasted Macron, claiming that, as the largest bloc in the new National Assembly with some 190 seats, they are entitled to propose a new prime minister.
Some describe Macron's actions as "the return of the royal veto", and "like having Louis XVI locking himself away in Versailles".
The far right has also not been shy in criticizing the President, with RN's Marine Le Pen calling the parliamentary manoeuvres an "unworthy circus" and claiming the party's majority "has only been postponed".
Meanwhile, centrists allied with Macron are seeking allies in an attempt to bolster their forces.
5. Spain and England to face-off in Euro 2024 final
Europe's biggest football competition is nearing its climax, as England and Spain get ready to play the final match taking place this Sunday, 14 July, at the Olympiastadion in Berlin.
Spain has been widely considered to be the best-playing team of the tournament, led by the unlikely figure of 16-year-old prodigy Lamine Yamal on a journey filled with high-level opposition.
England are back-to-back Euros finalists, following 2021's heartbreak-at-home, when the hosts saw Italy snatch a much desired victory in the decisive moments of a penalty shootout.
For all the marbles – 24 teams. 50 matches (so far). One final chance to bring glory back home. The UEFA Euro 2024 is nearing the end, and Europe's football celebration will see Spain or England crowned as the ultimate kings of the hill in Berlin.
While somewhat underwhelming in terms of match quality - at least by the bigger name teams - Euro 2024 has had its share of exciting moments.
And the road to the final couldn't have been more different for these two teams.
Slowly getting back to the top –Spain has dazzled with their high-pressing, high-octane style, with schoolboy prodigy Yamal (who has already broken several age-records) and speedy winger Williams expertly supported by Rodri and Dani Olmo.
La Roja breezed through the group stage with 3 victories and no goals allowed. They then dismantled the feel-good underdog story of the competition, Georgia (who took Luxembourg's place in a heartbreaking playoff), before beating hosts Germany and Mbappé's France on the road to the final. Fans and pundits alike consider Spain the best team and the favorite to bring home the trophy.
The Spaniards had been going through some growing pains. They found themselves having to renew the national squad following the massive success of the previous golden generation, which had won the 2008 and 2012 Euros along with the 2010 World Cup - three welcome additions to their trophy cabinet that until then only held the 1964 European title.
Is it coming home? –A rock solid defence despite notable absences and a healthy dose of inspiration when they most needed it have propelled England back to a Euros final. Along the way, they scored last-minute unbelievable goals, exorcised their penalty demons and had a little bit of controversial luck.
Led by Kane, Bellingham and Foden (top scorer in Germany, best player in Spain and best player in England, respectively), fans were hoping for a festival of goals and beautiful attacking football. However, the team's performances have been lacklustre, despite an arguably favourable draw that saw them face theoretically "weaker" opponents throughout the tournament, with manager Gareth Southgate once again facing a chorus of criticism.
But at the end of the day, he has taken England back to the top, or very close to it, and they are one small step away from bringing football glory back home.
And this is football, anything can happen.
The best of... 📚
- Business & Tech – The EU on Thursday approved Apple's offer to allow rivals access to the iPhone's ability to tap-to-pay within the bloc, ending a lengthy probe and sparing it a heavy fine.
- Science & Environment – A planet relatively close to Earth could be the first ever detected with a potentially life-sustaining liquid ocean outside our Solar System, according to scientists using the James Webb space telescope.
- Entertainment – Actor and Democrat fundraiser George Clooney called for "friend" Joe Biden to end his reelection campaign, citing the President's faltering debate performance and advancing age as key concerns as other members of the 'Hollywood elite' have joined the appeal.
- Sport – Liverpool star Darwin Nunez and other Uruguay players were involved in a brawl with Colombian fans which erupted after their 1-0 Copa America semi-final defeat on Wednesday. Tournament organizers CONMEBOL have condemned the occurences. Colombia is set to face Argentina in the final match.
And in case you missed it... ⚠️
- Olympic hopes – The Luxembourgish committee has chosen the 13 athletes who will represent Luxembourg in the Paris Olympic Games, starting on 26 July.
- Acid leak – A hydrochloric acid leak from a parked lorry at the Berchem service station early Thursday prompted a swift response from the Grand Ducal Fire and Rescue Corps, leading to a temporary closure of the area to traffic.
- International support –Luxembourg and Ukraine have signed a ten-year bilateral security agreement in Washington D.C. As part of the deal, Luxembourg pledged €80 million in military aid to Ukraine for 2024, with cooperation in the satellite technology and IT sectors also being discussed.
- Job losses hit 11-year high –The first half of 2024 saw 570 companies declare bankruptcy, resulting in the loss of 1,760 jobs, according to the National Institute of Statistics and Economic Studies (STATEC).
Your Weekly Recap is published every Friday at noon. Read earlier versions.
