Your Weekly Recap for 3–7 February 2025.
Here are five things you should know at the end of this week:
- Inflation surges while mortgage interest rates decline
- Trade unions intensify opposition to retail reforms
- Archdiocese ousts Verbum Spei fraternity over 'dangerous doctrine'
- Trump administration faces backlash over contentious Gaza plan, Musk Treasury takeover
- Gunman kills 10 in Sweden mass shooting
1. Inflation surges while mortgage interest rates decline
© AFP
Luxembourg's annual inflation nearly doubled to 1.9% in January due to soaring gas (+36%) and electricity (+43.9%) prices, though the upcoming wage indexation remains scheduled for the second quarter of 2025.
- The end of government subsidies led to sharp increases in heating oil (+28%), fuel (+4.4%), and various food items, with fresh fish (+9.8%) and vegetables (+4.0%) rising the most.
- Meanwhile, Luxembourg's central bank reported a significant decline in mortgage interest rates, with fixed rates at 3.25% and variable rates at 4.04%, leading to increased home loan activity.
Inflation spikes – Luxembourg's annual inflation rate nearly doubled in January 2025, rising from 1.0% to 1.9% in just one month. This surge was largely driven by sharp increases in gas and electricity prices, following the partial removal of government price caps and subsidies.
Despite the significant jump in living costs, the schedule for wage indexation remains unchanged, with the next adjustment still set for the second quarter of 2025. STATEC, the national statistics agency, forecasts inflation to reach 2.2% by the end of the year before moderating slightly to 1.8% in 2026.
Energy and fuel costs surge – The end of state subsidies on essential utilities and fuels led to steep price hikes at the start of 2025. Electricity costs soared by 43.9% in January, following a 13.6% drop in December, due to the government rolling back its tariff shield.
Gas prices also increased by 36%, primarily due to the state ending its contribution to grid usage charges. Fuel prices saw a more moderate rise, with petrol up by 3.8% and diesel by 4.1%, while heating oil jumped by 28% after a subsidy of 15 cents per litre was withdrawn at the end of 2024.
Meanwhile, food prices showed a milder increase of 1.1% overall, though certain items such as fresh fish (+9.8%) and vegetables (+4.0%) became noticeably more expensive.
Mortgage rates drop – In contrast to rising living costs, Luxembourg's central bank reported a sharp decline in mortgage interest rates at the end of 2024, making home loans slightly more affordable. Fixed mortgage rates for new loans averaged 3.25% in December, their lowest level since autumn 2022, while variable rates dropped to 4.04%, the lowest since April 2023.
This decline encouraged more borrowing, with banks lending €338 million to home buyers in December, a significant increase from €219 million the previous month. However, consumer loan rates saw a small rise to 4.82%, a seasonal trend often observed during the winter months as holiday spending increases.
2. Trade unions intensify opposition to retail reforms
© Fanny Kinsch
Luxembourg's major trade unions staged a protest outside the Chamber of Deputies against the planned liberalisation of shop opening hours, warning of its impact beyond retail.
The unions intensified their campaign with a larger demonstration at the Chamber of Employees, arguing that extended opening hours would harm the work-life balance of over 50,000 workers.
A national protest is planned for 28 June, with additional awareness events scheduled as unions seek to mobilise public support against the proposed changes.
Sending a message – On Wednesday, members of the Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB) gathered outside the Chamber of Deputies to protest against the government's proposed liberalisation of shop opening hours. The demonstration, attended by around 60 participants, mainly retail staff representatives, aimed to send a clear message to the Chamber's labour and economy commissions, who were meeting with ministers to discuss the changes.
Union representatives stressed that the impact of extended shop hours would not be limited to retail workers but would also affect employees in related sectors such as cleaning, security, and childcare, who would face increased demands on their time and schedules.
Coordinated efforts – The unions intensified their campaign the following day with a larger demonstration at the Chamber of Employees in Bonnevoie, where over 300 supporters gathered under the slogan "Hands off our Sundays, our public holidays, our working hours". They argued that beyond working hours, the proposed liberalisation would disrupt the personal and family lives of more than 50,000 employees, many of whom they say strongly oppose the changes.
Union leaders highlighted that extending retail opening hours could set a precedent for other sectors, potentially affecting work-life balance for employees across multiple industries. The event reflected growing resistance among unions who fear that these changes could erode employee rights and working conditions.
National protest announced – To maintain momentum and rally wider public opposition, the unions have announced a major national protest on 28 June, which they hope will draw significant participation. In the lead-up to this event, additional actions are planned, including demonstrations on Valentine's Day and awareness campaigns at major railway stations to engage commuters and raise public consciousness about the issue.
3. Archdiocese ousts Verbum Spei fraternity over 'dangerous doctrine'
© Morgan Doux
The Luxembourg Archdiocese has cut ties with the Verbum Spei fraternity due to a "breach of confidence" and concerns over its links to a controversial philosophical doctrine associated with potential spiritual abuse.
A 2024 investigation revealed that a priest from Verbum Spei had a consensual relationship with a university student, leading to two children, raising further concerns despite no accusations of abuse.
While Verbum Spei is allowed to hold Mass in Esch-sur-Alzette until the end of summer due to legal obligations, all other activities have been immediately banned by the diocese.
Ties severed – The Luxembourg Archdiocese has officially ended its collaboration with the fraternity Verbum Spei, citing a "breach of confidence" and the fraternity's failure to distance itself from a controversial philosophical doctrine. This doctrine originates from the teachings of Father Marie-Dominique Philippe, the founder of the Brothers of Saint-John, whose ideas on "friendship love" have been criticised for potentially enabling spiritual abuse.
While Verbum Spei was granted approval to operate in Luxembourg in 2016 under the condition that it would separate itself from these teachings, the archdiocese determined that the fraternity had not upheld this commitment, leading to the decision to sever ties.
Boundaries blurred – Further scrutiny of Verbum Spei arose following a 2024 investigation launched by the Luxembourg Diocese in response to a complaint made to Cardinal Jean-Claude Hollerich. A woman reported that, as a university student, she had been in a consensual relationship with one of the fraternity's priests, which resulted in the birth of two children.
While church officials clarified that this was not a case of sexual abuse, the revelation raised broader concerns in light of past scandals within the Catholic Church. The archdiocese emphasised that the issue at hand was primarily one of trust and confidence, given the fraternity's connection to a doctrine that has been previously criticised for its potential to blur ethical and spiritual boundaries.
Gap to be filled – Although the diocese has severed all official ties with Verbum Spei, the fraternity will be allowed to continue holding Mass in Esch-sur-Alzette until the end of the summer due to legal obligations, particularly regarding employment contracts. However, all other activities, including chaplaincy services for university students and events such as the Bistrot des Moines, have been immediately prohibited.
Moving forward, the Luxembourg Catholic Church is assessing how to fill the gap left by Verbum Spei's departure, as its masses in southern Luxembourg, particularly among francophone families, have drawn a significant congregation. The diocese has stated its commitment to ensuring that parishioners in the affected areas continue to have access to spiritual services.
4. Trump administration faces backlash over contentious Gaza plan, Musk Treasury takeover
US President Donald Trump and Israeli PM Benjamin Netanyahu hold a joint press conference in the East Room at the White House in Washington DC on 4 February 2025. / © AFP
President Donald Trump proposed a US takeover of Gaza, relocating Palestinians and turning the enclave into a luxury destination, sparking global condemnation, with the UN warning against "ethnic cleansing" and the White House later backtracking on key details.
Trump imposed sanctions on the International Criminal Court after it issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu, accusing the court of illegitimate actions against the US and Israel, while global leaders, including the Netherlands, criticised the move.
Meanwhile, Elon Musk's government reform team was granted "read-only" access to the US Treasury's payment system under Trump's cost-cutting initiative, prompting Democratic lawmakers to demand an investigation over security and ethical concerns.
Contentious proposal – President Donald Trump this week announced a highly controversial plan for the United States to take over Gaza, relocate its Palestinian population, and transform the war-ravaged enclave into a luxury destination, triggering immediate global condemnation. The proposal, unveiled during a White House press conference with Israeli Prime Minister Benjamin Netanyahu, was met with rejection from Palestinian leaders, Arab governments, and international human rights organisations.
The UN warned that any forced displacement of Palestinians would constitute "ethnic cleansing", while Trump's Secretary of State Marco Rubio attempted to soften the proposal by suggesting any relocations would be temporary. Despite Trump's insistence that "everybody loves" the plan, widespread opposition persisted, with Egypt and Jordan refusing to accept Palestinian refugees and the European Union reaffirming its stance that Gaza must remain an integral part of a future Palestinian state.
New sanctions – Trump also imposed sanctions on the International Criminal Court (ICC) after it issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and other officials over alleged war crimes in Gaza. The White House claimed the ICC had "abused its power" by targeting America and its allies, freezing assets and restricting travel for court officials involved in the investigations.
This decision mirrored previous Trump-era sanctions against the ICC in 2020, which were later lifted by President Joe Biden. The move drew swift international criticism, with the Netherlands, the ICC’s host country, expressing regret, and legal experts warning that the US was undermining international accountability.
Musk takeover – Meanwhile, another controversy emerged as the US Treasury confirmed that Elon Musk's government reform team had been granted "read-only" access to its sensitive payment system as part of Trump's cost-cutting initiative under the Department of Government Efficiency (DOGE). While the Treasury insisted the access was limited to an "operational efficiency assessment", Democratic lawmakers raised alarm over the security risks and potential misuse of financial data, demanding a congressional investigation.
The move was reportedly approved by Treasury Secretary Scott Bessent after a career official who initially resisted the decision was placed on administrative leave and later retired. Musk, defending the initiative, argued that monitoring payment flows was essential to eliminating fraud and waste in government spending.
However, labor unions and advocacy groups have filed lawsuits challenging the legality of the move, citing privacy and security concerns over taxpayer data.
5. Gunman kills 10 in Sweden mass shooting
A makeshift vigil is pictured near the adult education center Campus Risbergska school in Orebro, Sweden, on 6 February 2025, two days after a shooting there left eleven people dead. / © AFP
Sweden is mourning its deadliest mass shooting, where a gunman killed 10 people at an adult education centre in Orebro before likely taking his own life.
The attacker, a 35-year-old former student with reported mental health issues, carried multiple firearms hidden in a guitar case and selectively targeted victims.
Police are investigating the motive but have found no ideological link, while six survivors remain hospitalised and world leaders, including Pope Francis, have expressed condolences.
What unfolded – The attack took place at Campus Risbergska, a school for young adults in Orebro, west of Stockholm, on Tuesday. The shooter, heavily armed, entered the building and opened fire, leaving 10 victims dead before being found dead himself when police arrived.
Authorities have stated that there is strong evidence suggesting the shooter turned the gun on himself, marking this as the worst mass shooting in Sweden's history. In response, the nation has come together in mourning, with King Carl XVI Gustaf, Queen Silvia, and Prime Minister Ulf Kristersson visiting the site to pay their respects.
A memorial service was held at Nikolai Church in Orebro, where government officials and religious leaders gathered alongside residents to honour the victims.
About the suspect – According to Swedish media, the suspected shooter was a reclusive local man who had attended the school but had not been enrolled since 2021. Reports indicate that he suffered from psychological issues and had lived in isolation for years.
He arrived at the school around midday, concealing his weapons inside a guitar case before changing into military attire in a restroom. Witnesses described how he passed by certain individuals without attacking them, suggesting a degree of selectivity in his actions.
He was heavily armed, carrying three rifles – including a hunting rifle and a shotgun – as well as a knife. Authorities are still working to determine his exact motives and whether the attack was planned in advance.
Six hospitalised – Law enforcement officials have stated that there is currently no evidence of an ideological or extremist motive behind the attack. The suspect was not previously known to police, and authorities are working to understand why he carried out the massacre.
At the time of the shooting, six people were injured and taken to Orebro's university hospital, where three women and two men underwent surgery for gunshot wounds and remain in serious but stable condition. A sixth victim sustained minor injuries.
The tragedy has prompted an outpouring of international condolences, with Pope Francis sending a message of sympathy to Swedish Prime Minister Ulf Kristersson. The attack has also reignited concerns about rising violence in Sweden, which has seen a surge in shootings and bombings linked to gang activity in recent years.
The best of... 📚
- Business & Tech – Nissan shares plunged on Wednesday as reports said the struggling Japanese carmaker was walking away from merger talks with rival Honda.
- Science & Environment – Two US biotech companies say the Food and Drug Administration has cleared them to conduct clinical trials of their gene-edited pig kidneys for human transplants.
- Entertainment – Oscar hopeful Karla Sofia Gascon's woes over a series of offensive social media posts deepened on Thursday after a diversity-centred Spanish publishing house dropped plans to reprint her book.
- Sport – Luka Doncic vowed to lead the Los Angeles Lakers to NBA championship glory on Tuesday at his formal unveiling by the club following his shock trade from the Dallas Mavericks.
And in case you missed it... ⚠️
- Government expenses – The combined financial toll of the Covid-19 pandemic and the war in Ukraine has reached €5.6 billion, Luxembourg ministers disclosed in a detailed response to a parliamentary question.
- Sustainability – Valorlux warns that too many reusable bags go unused – defeating their eco-friendly purpose.
- Power outage – Repair efforts are still underway in Luxembourg City after a fire at a construction site triggered a power outage in the Gare neighbourhood and parts of Gasperich, impacting local residents and businesses, including some services of the POST Group.
- Lucky numbers – In 2024, Luxembourg's National Lottery generated a record-breaking €90 million in gross revenue, with sports betting driving much of the growth.
Your Weekly Recap is published every Friday at noon. Read earlier versions.
