Your Weekly Recap for 25–29 November.

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

  • Luxembourg military chief floats reintroduction of conscription
  • Bettendorf moves toward referendum on Nordstad merger
  • Chamber of Commerce pushes for wage indexation cap
  • Israel, Hezbollah implement Lebanon ceasefire agreement
  • Australia enacts landmark social media ban for under-16s

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Here are the top five news stories in Luxembourg this week as Sasha settles into the holiday season! #luxembourgnews #newsinluxembourg #luxembourg #weeklyrecap

♬ original sound - Today Radio Luxembourg by RTL
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1. Luxembourg military chief floats reintroduction of conscription

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  • Luxembourg's Chief of Army Steve Thull this week proposed reconsidering mandatory military service to strengthen national resilience and defence capabilities, citing examples from Sweden, Finland, and lessons from the Ukraine war.

  • The Pirate Party strongly opposes reintroducing conscription, deeming the discussion inappropriate and advocating for improving recruitment conditions instead.

  • Defence Minister Yuriko Backes acknowledged that while conscription is not planned, a broader debate on the topic is inevitable in Luxembourg and across Europe.

Resilience and readiness – General Steve Thull, Chief of Staff of the Luxembourg Army, has suggested that reintroducing mandatory military service could significantly enhance Luxembourg's resilience and defence readiness. Drawing on examples from Sweden and Finland, Thull highlighted the importance of proactive measures like distributing crisis preparedness booklets to equip citizens for potential disruptions. He emphasised the lessons from the ongoing war in Ukraine, which underscores the need for a prepared population and robust defence capabilities. Thull argued that conscription could foster a resilient society capable of responding to crises while strengthening the nation’s ability to handle unforeseen challenges.

Suggestion 'inappropriate' – The Pirate Party strongly opposes the proposal to reintroduce compulsory military service, calling it an inappropriate response to current challenges. In a recent statement, the party argued that the focus should instead be on improving recruitment efforts and enhancing working conditions in the military to make it more attractive as a career choice. They plan to present this stance in the Chamber of Deputies, emphasising the need for voluntary participation in the armed forces. For the Pirate Party, freedom of choice is paramount, and mandatory service contradicts this principle, which they intend to defend through a motion in the upcoming parliamentary session.

Discussion 'inevitable' – Defence Minister Yuriko Backes has previously stated that while there are no immediate plans to reinstate mandatory military service, the discussion on conscription is unavoidable, both in Luxembourg and across Europe. While conscription is not part of the current coalition agreement, the minister sees value in a broader debate to address national preparedness and recruitment challenges, aligning with ongoing conversations in other European nations.

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2. Bettendorf moves toward referendum on Nordstad merger

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  • A citizens' initiative in Bettendorf has surpassed the required threshold of signatures, triggering a referendum on whether the municipality should reconsider its decision to exit merger talks with Nordstad.

  • The municipal council is required to organise the referendum within three months if signatures are validated, with 9 February being a potential date, though logistical challenges and timing concerns have been raised.

  • The referendum will be consultative and non-binding, and uncertainty remains about whether the other municipalities in the Nordstad merger discussions would still include Bettendorf.

Referendum not binding – A citizens' initiative in Bettendorf successfully gathered signatures from more than 20% of registered voters, surpassing the threshold required to initiate a referendum. The petition was launched in response to an October decision by the municipal council to withdraw from Nordstad merger discussions with the municipalities of Schieren, Ettelbruck, Erpeldange-sur-Sûre, and Diekirch. The initiative reflects significant public dissatisfaction with the council's decision and aims to pressure local authorities into reconsidering their stance. While Mayor Patrick Mergen acknowledged the citizens' right to petition, he clarified that the referendum's outcome would be consultative, without legally binding power over the council's actions.

Tight timeline – If the signatures are verified, the municipal council must organise the referendum within three months, as legally required. However, logistical issues have sparked debate, with council members noting that February holidays could interfere with voter turnout. Deputy Mayor Andy Deemden suggested 9 February as a feasible date, but the council also discussed seeking approval from the Ministry of Interior to extend the deadline.

Uncertainty persists – The referendum, while a critical step for public engagement, will be consultative and non-binding, leaving the municipal council free to make its own decisions regardless of the result. This adds to the uncertainty surrounding the process, as 7 of the eleven council members had already voted against continuing the merger talks. Additionally, it remains unclear whether the other municipalities involved in the Nordstad merger discussions would still welcome Bettendorf's participation, given the municipality's earlier decision to withdraw.

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3. Chamber of Commerce pushes for wage indexation cap

  • The Luxembourg Chamber of Commerce advocates reforming the wage indexation system to address high labour costs, proposing capped adjustments for higher earners to improve competitiveness.

  • The Chamber suggests a "three-pillar reform", limiting wage indexations to once per year, ensuring full indexation for lower incomes, and linking adjustments to environmental goals.

  • The proposal faces resistance from trade unions and the government, which has pledged to preserve the current universal wage indexation system.

Economic edge – The Luxembourg Chamber of Commerce has highlighted the country's high labour costs, which outpace those of neighbouring countries, as a major threat to economic competitiveness. To address this, the Chamber proposes reforms to the automatic wage indexation system, specifically by capping adjustments for higher earners. According to the institution, this would help reduce the financial burden on businesses while still preserving indexation for lower-income workers. The Chamber argues that such measures are critical to maintaining Luxembourg's economic edge and addressing the concerns of entrepreneurs, with 57% identifying labour costs as a key challenge for 2025.

Three pillars – The Chamber's reform plan is based on three pillars, those being economic, social, and environmental. Economically, the Chamber proposes limiting wage indexations to one adjustment per year to provide employers with greater financial predictability. Socially, the plan ensures full indexation for workers earning up to 1.5 times the median income, with progressively reduced adjustments for those earning more. Environmentally, the Chamber suggests linking wage indexations to a "sustainable basket" of goods and services to align the system with Luxembourg's climate goals.

Resistance – Despite its focus on high earners, the Chamber's proposal faces significant resistance from trade unions and other stakeholders who see it as a threat to the universal nature of Luxembourg's wage indexation system. The current coalition government has pledged to maintain the system in its existing form, pointing to the political challenges of implementing the Chamber's suggested reforms. Critics argue that capping and reducing indexation for higher earners would undermine a key element of Luxembourg's social model, and any such changes are likely to face substantial opposition before being considered for adoption.

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4. Israel, Hezbollah implement Lebanon ceasefire agreement

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Women greet each other as displaced people make their way back to their homes in the south of Lebanon after a ceasefire between Israel and Hezbollah took effect on 27 November in the southern town of Qana. / © AFP

  • A US and French-brokered ceasefire between Israel and Hezbollah in Lebanon took effect on 27 November, with the Lebanese army assuming control of southern territories and Hezbollah forced to retreat after significant military losses.

  • The truce aims to de-escalate tensions, protect Israel from Hezbollah's influence, and potentially pave the way for peace efforts in Gaza, where Israel continues its war on Hamas.

  • The ceasefire has created opportunities for Lebanon to address its leadership vacuum, with parliament scheduled to vote for a new president on 9 January 2025, amid calls to reduce Hezbollah's political dominance.

Truce in effect – The ceasefire, brokered by the United States and France, marks a pivotal moment in the conflict between Israel and Hezbollah. It came into effect on 27 November following months of intensified violence, including heavy Israeli airstrikes on Hezbollah strongholds and retaliatory attacks on Israeli territories. Under the agreement, the Lebanese army is tasked with securing the southern border, effectively diminishing Hezbollah's military presence in the area. This shift not only weakens the Iran-backed militant group but also signals a step towards stabilising the volatile region. However, the ceasefire's success depends on its enforcement, with international actors pledging oversight to prevent further hostilities.

Full focus on Gaza – The ceasefire is seen as a critical move to ease tensions across the Middle East. With Hezbollah's military capabilities curtailed, Israel can redirect its focus to the ongoing conflict with Hamas in Gaza. US President Joe Biden and French President Emmanuel Macron have expressed hope that the truce could serve as a model for brokering peace in Gaza and addressing broader regional instability.

Governance challenges – The ceasefire has reinvigorated efforts to resolve Lebanon's two-year-long presidential vacuum, a symptom of the country's entrenched political gridlock. With parliament scheduled to convene on 9 January 2025 to elect a new president, there is renewed hope for political reform and stability. The agreement has also diminished Hezbollah's influence, creating a potential opening for Lebanon to assert greater national sovereignty. Some argue that Hezbollah's weakened state could now allow the country to break free from the group's dominance and focus on addressing its economic crises and governance challenges.

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5. Australia enacts landmark social media ban for under-16s

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A schoolboy looks at his phone in Melbourne on 27 November as Australia looks to ban children under 16 from social media with claims social media platforms have been tarnished by cyberbullying, the spread of illegal content, and election-meddling claims. / © AFP

  • Australia has passed landmark legislation banning under-16s from using social media platforms like Facebook, Instagram, and X unless companies take "reasonable steps" to block access, with violators facing fines up to AUS$50 million.

  • The law has drawn criticism from social media firms, experts, and UNICEF, citing concerns over vague enforcement mechanisms, potential harm to digital literacy, and risks of pushing youth into unregulated online spaces.

  • The legislation, set to take effect in 12 months, is being closely monitored as other countries consider similar restrictions, with debates over its impact on children's safety, privacy, and online creativity.

Landmark ban – Australia has introduced one of the toughest social media bans globally, prohibiting individuals under 16 from creating accounts on platforms like Facebook, Instagram, and X unless companies enforce age restrictions. The legislation, passed by the Senate with significant political support, requires social media firms to take "reasonable steps" to verify users' ages and ensure compliance. Companies that fail to adhere to the law face steep fines of up to AUS$50 million for systemic breaches. Advocates, including Prime Minister Anthony Albanese, view the ban as a necessary step to protect children from the negative impacts of social media, such as exposure to harmful content, peer pressure, and online predators, despite acknowledging enforcement challenges.

Criticism – The legislation has faced widespread criticism for its perceived vagueness and rushed implementation. Social media companies argue that the rules lack clarity and could be unworkable in practice, while experts and organisations like UNICEF warn that the ban might push children into unregulated and covert online spaces, potentially increasing risks. Critics have also highlighted the lack of detail regarding enforcement, with age verification mechanisms, data privacy concerns, and potential exemptions for platforms like WhatsApp and YouTube remaining unresolved. Moreover, the legislation has been called out for ignoring input from mental health and online safety experts, who emphasise that digital literacy programmes may be more effective in addressing the root causes of online harm.

All eyes on Australia – The groundbreaking law has drawn international interest, as countries like Spain, the United States, and China evaluate or implement their own measures to restrict minors' social media access. The Australian ban is seen as a test case for balancing online safety with digital inclusion, as governments grapple with growing concerns over social media's influence on young people. However, critics fear that Australia's legislation might stifle creativity and innovation among young people while creating significant privacy and enforcement challenges. The global community is watching closely to assess the effectiveness and unintended consequences of this landmark law.

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The best of... 📚

  • Business & Tech – Google and the US government faced off in a federal court on Monday, as each side delivered closing arguments in a case revolving around the technology giant's alleged unfair domination of online advertising.

  • Science & Environment – A bitterly-fought climate finance deal reached at COP29 risks weakening emissions-cutting plans from developing countries, observers say, further raising the stakes for new national commitments due early next year.

  • Entertainment – British rock star Rod Stewart is set to play the coveted legends slot at Glastonbury next year, over two decades after he headlined the iconic music festival, the organisers said Tuesday.

  • Sport – World number two Iga Swiatek has accepted a one-month suspension after testing positive for a banned substance, the International Tennis Integrity Agency (ITIA) announced on Thursday.

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And in case you missed it... ⚠️

  • PopulationSaeul has become the last municipality in Luxembourg to surpass 1,000 residents, marking a historic milestone for the Grand Duchy.

  • Post Starting 1 February 2025, POST Luxembourg will introduce a new pricing system, affecting both national and international parcel and letter rates.

  • Emergency servicesAn emergency doctor in Luxembourg has been suspended for a year after taking a selfie at a road accident scene and failing to wear required safety equipment.

  • Diplomacy – Luxembourg welcomed a new group of ambassadors on Thursday, as Hereditary Grand Duke Guillaume presented their letters of credence during formal ceremonies at the Grand Ducal Palace.

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