In response to municipalities' concerns over the financing of the CGDIS, Minister for Home Affairs Léon Gloden has announced a series of changes, aiming to balance the funding responsibilities.

Municipalities feel unfairly treated regarding the financing of the grand Ducal Fire and Rescue Corps (CGDIS), a view shared Home Affairs Minister Léon Gloden, who announced upcoming changes to address these concerns. The CGDIS board of directors approved a series of changes at the end of June, as confirmed by Gloden in response to a parliamentary question from MP Dan Biancalana of the Luxembourg Socialist Workers’ Party (LSAP).

Three key changes have been announced. The first addresses the current imbalance in financing between the state and municipalities, where more than half of the burden falls on the municipalities. Although these municipalities receive 10% of the VAT revenue generated by the CGDIS, they still have to cover the remainder from their own budgets. Additionally, the VAT increase from 15% to 17% has not been factored in, with the extra revenue allocated to the state.

Moving forward, these VAT revenues will be considered municipal contributions, providing approximately €32 million in additional funds to various municipalities. For instance, in 2022, municipalities would have only needed to pay around €6 million instead of €32.2 million if the new system had been in place.

The second change involves the National Fire and Emergency Services Centre (CNIS) at Cloche d'Or. The state will forego the reimbursement of its share, which amounts to around €80 million. This decision will save emergency services not only this substantial amount, but also €32 million in interest on the corresponding loan.

The third change aims to restore proportionality relative to a municipality's revenue. Provisions from the relevant 2018 law, which were abolished by the previous government in 2022, will be reinstated. Without this adjustment, some municipalities might struggle to sustain their contributions, according to Gloden.

The municipal syndicate Syvicol has been closely involved in the discussions. The texts are currently being drafted and the changes are expected to take effect on 1 January 2025.