RTL Today - Your Weekly Recap: Gaza patients to be treated in Luxembourg, Spain devastated by floods, and France weighs benefit cuts for cross-border workers

Your Weekly Recap for 28 October–1 November.

Here are five things you should know at the end of this week:

Luxembourg considers taking in patients from Gaza as FM embarks on new Middle East trip
Luxembourg mortgage and credit rates dip in September as ECB fights inflation
Electricity costs in Luxembourg to surge by 30% in 2025
Spanish rescuers battle to find missing flood victims
France weighs unemployment cuts for cross-border workers amid cost-saving push

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1. Luxembourg considers taking in patients from Gaza as FM embarks on new Middle East trip

Health Minister Martine Deprez has announced plans to send medical supplies to conflict zones and potentially transfer Gaza patients to Luxembourg for treatment, addressing humanitarian needs at a WHO conference in Copenhagen.
Foreign Minister Xavier Bettel has meanwhile embarked on a diplomatic mission to Cyprus, Israel, and Palestine, focusing on supporting ceasefire talks and a two-state solution amid ongoing Middle East tensions.

Bettel acknowledged the complexity of achieving peace, emphasising the need for a balanced approach and expressing concern over the impact of the conflict on civilians.

Potential patient transfers – Health Minister Martine Deprez announced plans to assist conflict zones globally by sending vital medical supplies and preparing to treat injured patients from Gaza in national hospitals. The announcement came during her address at the 74th WHO Regional Committee for Europe in Copenhagen, where Deprez expressed Luxembourg's commitment to addressing humanitarian health crises, especially in areas severely impacted by conflict. While specific details, such as the number of patients and an exact timeline, remain pending, the initiative reflects Luxembourg's proactive stance in providing international humanitarian support.

Third trip of the year – Foreign Minister, Xavier Bettel, has launched a diplomatic trip to Cyprus, Israel, and Palestine to bolster ongoing efforts for a ceasefire and to promote dialogue for a two-state solution in the Middle East. The mission, which follows several of Bettel's previous visits to the region this year, underlines Luxembourg's continued dedication to supporting peaceful negotiations and addressing escalating violence. During his trip, Bettel is meeting with key officials, non-governmental organisations, and affected communities.

Meaningful negotiations – Bettel, though committed to peace efforts, voiced limited optimism about achieving swift resolutions ahead of the trip, noting the nuanced nature of the conflict and the necessity of a balanced approach. He highlighted the difficulty of justifying the civilian casualties resulting from prolonged hostilities, emphasising the long-term consequences of the conflict on future generations. While Bettel recognises Israel's security concerns related to Hamas and Hezbollah, he also stressed the importance of a ceasefire as a critical foundation for meaningful negotiations.

2. Luxembourg mortgage and credit rates dip in September as ECB fights inflation

Mortgage and consumer credit rates in Luxembourg saw slight declines in September, following measures by the European Central Bank (ECB) to control inflation.
The average variable mortgage rate dropped to 4.45%, while fixed-rate mortgages for over ten years were at 3.47%, offering marginal relief to borrowers.
These rate reductions coincide with a recent decrease in property prices, potentially easing the financial strain on buyers.

Positive trends – The ECB's recent efforts to curb inflation are beginning to impact Luxembourg's financial landscape, with mortgage and consumer credit rates experiencing a modest decline in September. This adjustment comes after the ECB introduced measures aimed at reducing inflationary pressures, including lowering its main interest rate to 3.25% in October. While these reductions may be incremental, they signal a positive step for borrowers, especially as inflation remains a central concern across the Eurozone.

Marginal relief – According to the latest figures from the Luxembourg Central Bank (BCL), variable mortgage rates fell to an average of 4.45% for newly negotiated loans, down from 5% at the end of 2023. Fixed-rate mortgages also became slightly more affordable, averaging 3.47% for loans exceeding ten years. This adjustment marks an improvement from rates in November 2023, which stood at around 4.16% for fixed mortgages. While these changes may not drastically lower borrowing costs, they offer some relief to those navigating Luxembourg's high living costs and a tight housing market.

Property market – Alongside lower mortgage rates, Luxembourg has seen a slight decrease in property prices, which could provide a small reprieve for prospective buyers facing affordability challenges. Although purchasing power remains constrained for many, these adjustments in rates and prices may create a more favourable environment for those looking to enter the property market. The combined effect of lower mortgage costs and marginally reduced property prices could help counteract some of the financial burdens caused by high inflation and economic uncertainty.

3. Electricity costs in Luxembourg to surge by 30% in 2025

Luxembourg's electricity prices are set to rise by approximately 30% starting 1 January 2025, adding an estimated €250–€300 to annual household bills, Encevo CEO Claude Seywert announced this week.
A new electricity pricing model, currently being developed by the regulatory body ILR, will incentivise consumers to spread their electricity usage throughout the day for potential cost savings.
While most households may not see a significant impact, initial simulations suggest a slight increase in bills for a minority of consumers who do not adjust their usage patterns.

New year, new rates – Starting on 1 January 2025, households in Luxembourg can expect a significant rise in their electricity costs, with prices projected to increase by roughly 30%. Encevo CEO Claude Seywert explained that this increase, which translates to an estimated additional €250–€300 annually for an average four-person household, is unavoidable despite the government's energy cap, which has already shielded Luxembourg from higher costs seen in other European countries. Without this cap, households would face an annual electricity bill of around €1,440 instead of the current €850. This price rise reflects adjustments across the energy market that are impacting energy providers like Encevo, which have seen wholesale prices settle around €90 per megawatt hour, albeit with slim profit margins.

New pricing model – To further manage energy costs and encourage sustainable usage, Luxembourg's regulatory body ILR is actively working on a new electricity pricing model that aims to spread electricity consumption more evenly throughout the day. According to Seywert, households that successfully shift their energy use to off-peak hours could see cost benefits, as the model is designed to reward energy consumption patterns that ease pressure on the grid. This model will also support Luxembourg's broader goals for decarbonisation by accommodating users with solar panels or electric vehicles.

Limited burden – While the new pricing model will likely benefit the majority of Luxembourg households, initial simulations suggest a slight increase in electricity bills for those who do not alter their consumption patterns. Around 80% of households are expected to see little to no change in their bills, and some may even see a decrease. However, for the remaining households that do not distribute their electricity use as suggested, the new tariffs could result in slightly higher bills. Despite these potential increases, Seywert emphasized that the ILR aims to minimise impact, ensuring that the model remains fair and adaptable, accommodating diverse household needs without substantial additional financial burden.

4. Spanish rescuers battle to find missing flood victims

Rescuers walk along a street covered in mud upon their arrival in Paiporta after flash floods ravaged this town, in Valencia, eastern Spain on 31 October. / © AFP

Rescuers in Spain are urgently searching for missing residents after catastrophic floods have already claimed 158 lives, devastating the historic village of Letur.
Teams of rescuers, including divers, sniffer dogs, and drones, are navigating challenging terrain to locate those missing, while displaced villagers grapple with loss as they await news of loved ones.
At the UN biodiversity summit in Colombia, EU officials warned that Spain's deadly floods highlight the urgent need for climate action and biodiversity protection to mitigate future disasters.

Rescue efforts ongoing – In the small Spanish hamlet of Letur, a community of about 950 residents, the search for five missing people continues after floods caused unprecedented destruction across the region. The sudden and intense flooding struck on Tuesday evening, hitting several southeastern villages in Spain, with the death toll rising to at least 158 across the country. Despite their ongoing efforts, rescuers face increasing challenges as time goes by. The missing individuals include two local council employees whose vehicle was swept away in the deluge, as well as a couple and another woman. As the days pass, community members cling to hope as rescuers work tirelessly to find any trace of the lost residents amid the wreckage.

Waiting for updates – Nearly a hundred rescue personnel from various departments, including the Civil Guard, Red Cross, and fire brigade, have been working around the clock, utilising drones, helicopters, and sniffer dogs to aid in the search. Despite these resources, Letur's mountainous terrain and the force of the floodwaters complicate the effort. The floods ravaged historic sections of Letur, leaving homes, bridges, and streets buried under debris. Evacuated residents, some unable to return home, have been forced to shelter with relatives, while others wait in distress at the town hall for updates on missing family members.

Worsening climate impacts – At the UN biodiversity summit in Colombia, known as COP16, European leaders drew attention to Spain's devastating floods as an urgent reminder of the dangers posed by climate change. The European Commission's environment envoy, Florika Fink-Hooijer, stressed the interconnectedness of biodiversity loss and worsening climate impacts, noting that protecting ecosystems can mitigate some of the effects of global warming. However, progress in negotiations has been slow, with significant disagreements over funding between richer and developing nations.

5. France weighs unemployment cuts for cross-border workers amid cost-saving push

French unions and employers are negotiating €400 million in unemployment insurance cuts by 2025, with potential reductions targeting cross-border workers.
Proposed changes could force cross-border workers to accept lower-paying jobs in France or reduce their benefits based on cost-of-living adjustments.
Some union representatives criticise the focus on cross-border workers as an "overly convenient target" and question whether these cuts can meet the government's ambitious savings goal.

Ambitious goal – The French government has tasked unions and employers with finding ways to cut €400 million from the unemployment insurance budget by 2025, a goal many stakeholders find challenging. Meeting these ambitious savings targets has led to several rounds of discussions, with unions and employers considering a range of options. Much of the debate centres on how these cuts will impact cross-border workers, especially those commuting between France and Luxembourg, who may face significant changes to their unemployment benefits under the proposed guidelines. Negotiators aim to finalise an agreement by mid-November, though they recognise the difficulty of implementing such extensive reductions within a year.

Advantages eliminated – Among the proposed changes are measures that would require cross-border workers to accept lower-paying jobs in France to maintain their unemployment benefits. Currently, cross-border workers can refuse jobs in France that do not match the salaries they received in Luxembourg, but the new guidelines might eliminate this flexibility, potentially causing a reduction in overall benefits if they decline these positions. Additionally, another cost-saving proposal would adjust benefits to reflect the lower cost of living in France compared to Luxembourg, leading to an overall reduction in monthly benefit amounts for cross-border workers, who currently receive an average of €1,781 per month compared to €1,265 for those working exclusively within France.

'Easy' target – The focus on cross-border workers has drawn criticism from union representatives, who argue that this group is an "overly convenient target" for cost-cutting measures. Representatives from several unions, including the French Democratic Confederation of Labour (CFDT) and the General Confederation of Labour (CGT), have voiced concerns that the proposed cuts might unfairly penalise cross-border workers without fully addressing the broader financial issues within the unemployment system. They also highlighted that this request for cuts came informally, suggesting a lack of formal directive or political will to enforce these measures compared to previous administrations. Union leaders remain skeptical that targeting cross-border benefits alone will achieve the government's savings goal, urging a more comprehensive review of the system.

The best of... 📚

Business & Tech – OpenAI on Thursday beefed up its ChatGPT generative AI chatbot with search engine capabilities, as the startup takes on Google's decades-long dominance of web search.
Science & Environment – Greenhouse gas emissions in the EU fell by 8% in 2023 – among the biggest drops in decades – new data showed Thursday, though the bloc remains in a race against time to meet its ambitious climate goals.
Entertainment – The prospect of Game of Thrones making a return to the big screen is on the horizon, with reports indicating that at least one movie set in the franchise is in the very early stages of development.
Sport – The Los Angeles Dodgers produced a stunning fightback to defeat the New York Yankees and clinch the World Series on Wednesday with a dramatic come-from-behind 7-6 victory.

And in case you missed it... ⚠️

Support wanted – A fire at the Schifflange animal shelter on Tuesday evening left facilities damaged but no animals injured, prompting a public call for support to aid in recovery efforts.
Property market – The new housing assistance platform aides.lu launched Tuesday to help first-time buyers and investors estimate available government aids and project home acquisition costs, aiming to boost confidence amid cautious interest in the real estate market.
Environment – With fresh pledges from eight governments, the Global Biodiversity Framework Fund now boasts support from 12 countries, including Luxembourg, which ranks among its largest per capita donors.
Consumer habbits – With tipping habits in Luxembourg on a noticeable decline, shifting payment methods and rising costs are changing the way diners show appreciation for service.

Your Weekly Recap is published every Friday at noon. Read earlier versions.