Luxembourg's government will not provide "a single euro" to Caritas for the time being, as uncertainty remains about "who did what," Prime Minister Luc Frieden announced on Wednesday afternoon.

Prime Minister Frieden, along with Minister of Finance Gilles Roth, Minister of Education Claude Meisch, and Minister for Family Affairs Max Hahn, briefed parliamentary committees on the matter Wednesday afternoon.

Frieden explained that the government currently has no trust in Caritas' structure and emphasised the need to protect taxpayers' money. The government is demanding a contact person from Caritas to address practical concerns, such as appointing a provisional administrator.

Caritas, a service provider for the state, manages services for refugees and the homeless under agreements with the government. In 2024, the state has so far allocated €21.5 million to the NGO. Frieden stressed that any funds not used for their intended purposes must be returned. Some services have already been rendered, however.

The state provides funds in advances, typically on a monthly, quarterly, or semi-annual basis. Frieden stressed the importance of ensuring that Caritas's activities continue as planned. The Prime Minister noted that Caritas must internally evaluate its capabilities, and the government will focus on ensuring that essential services, such as refugee support, remain unaffected by the current situation. Frieden added that Caritas has reserves to cover operations for the next two months.

Additionally, the government reserves the right to pursue legal action against Caritas, if necessary, with the Prime Minister underscoring the seriousness of the crime. Frieden clarified that the €60 million reported in the media does not include state funds. Half of it consists of credit lines that Caritas secured from two banks. The state has nothing to do with that, Frieden stressed, adding that "this is a problem between Caritas and the banks."