PM Luc Frieden addresses approval slump, reform agenda, and union opposition

Prime Minister Luc Frieden appeared on RTL Radio on Saturday to discuss his government's declining popularity and upcoming pension reforms, following a Politmonitor poll showing his personal approval rating had dropped by 10 percentage points.

When questioned about the poll results, which also showed reduced support for his government overall, Frieden adopted a measured tone. "Naturally, these figures aren't positive," he acknowledged, comparing the situation to a sports tournament where "losing one match doesn't mean the championship is lost." The Prime Minister stressed that while he would use the feedback as motivation, policy decisions should not be dictated by opinion polls.

Frieden clarified key aspects of the proposed pension reforms first mentioned in his State of the Nation address. The plans include increasing required contribution years while maintaining current contribution rates, and preserving pension credits for university education periods. The government is also considering special provisions for physically demanding occupations. Frieden emphasised that the timeline remains flexible and no longer wanted to set 2030 as the target implementation date.

"The economy isn't strong enough yet," Frieden noted, "but only a thriving economy can sustain quality social policies." He left open the possibility of discussing contribution increases if consensus emerges.

The Prime Minister denied claims that the Democratic Party (DP) had been excluded from reform planning, pointing out that Deputy PM Xavier Bettel had reviewed his speech in advance. Frieden characterised the governing alliance's cooperation as "excellent."

The government's reform timeline will see Social Security Minister Martine Deprez present the results of the public consultation on pension reform in early July. Concurrently, Finance Minister Gilles Roth will present details on tax bracket individualisation based on the current class 1A structure.

Sunday work reform "not the most important bill"

Prime Minister Frieden reiterated his support for proposed legislation on Sunday work and extended shopping hours, framing the measures as necessary adaptations to modern lifestyles. While acknowledging concerns raised by his party colleague Marc Spautz about potential impacts on vulnerable groups, Frieden sought to allay fears. "Sunday will never become a regular working day," he asserted, noting that any Sunday work would carry mandatory premium pay provisions.

The Prime Minister dismissed suggestions that extended opening hours could undermine retail sector collective agreements. Though he recognised the three formal objections raised by the Council of State require legal examination, Frieden emphasised that final authority on the political decision rests with the Chamber of Deputies. Frieden added that the Sunday work bill is "not the most important" project of this legislative term, with the government's true priorities lying in "advancing new technologies."

Climate protection "extremely important"

Addressing criticism from the Chamber of Employees, trade unions, and the Ecological Movement about insufficient action on ecological transition, Frieden presented a robust defence of the government's climate agenda. The Prime Minister noted that approximately 50 environmental measures are currently under government consideration, with several already in implementation.

As a concrete example, Frieden highlighted the decision to subsidise grid costs, which directly lowers household expenses. According to Frieden, all of these measures are designed to improve people's lives, particularly those with lower incomes.

NATO spending commitments: Luxembourg's cautious approach

As NATO prepares for its Tuesday summit addressing defence spending targets, Prime Minister Frieden outlined Luxembourg's position amid growing international pressure. The discussions come as US President Donald Trump renews calls for allies to increase military expenditures to 5% of GDP – a figure that would require Luxembourg to allocate over €3 billion annually, significantly above the €1.2 billion already budgeted for 2025.

On Friday night, Trump clarified that this would not apply to the United States, claiming that Washington has supported NATO long enough and that the US has often covered 100% of costs.

Frieden declined to commit to specific percentage targets ahead of the summit, merely stating that he would follow the discussions alongside Foreign Minister Bettel and Defence Minister Yuriko Backes. He emphasised Luxembourg's broad interpretation of defence needs, which extends beyond traditional military spending to include critical infrastructure protection, cybersecurity capabilities, or satellite support for allied nations. The Prime Minister stressed that the government will not compromise social policies to meet spending goals and explicitly ruled out any temporary solidartiy tax to fund increased military budgets.

Frieden also noted that certain infrastructure investments could be classified as defence spending – for example, expanding Findel Airport, which would also benefit the public.

Frieden hopes for "dialogue" with social partners

Prime Minister Frieden also addressed upcoming discussions with social partners, carefully framing the meeting with employer groups and trade unions on 9 July. Notably avoiding the term "tripartite," Frieden clarified his position: "Luxembourg isn't in crisis." According to Frieden, the tripartite mechanism was specifically created for economic emergencies, which the country is not currently facing.

The Prime Minister extended an olive branch to labour organisations ahead of their planned mass demonstration on 28 June. "I hope the unions will participate in our dialogue," Frieden stated, referencing the protest organised by both the Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB) against government policies.

When asked about a controversial comment he made regarding the union protest, Frieden said on Saturday that he did not yet know whether he would actually go for a walk in the woods that day. He admitted he had been "caught off guard" by the initial question and stressed that he would, "of course," take the protest seriously.