© François Aulner
Between looming union protests and NATO negotiations, Xavier Bettel is pressing for concessions on pension reform while backing increased defence spending with a dose of realism.
Foreign Minister and Deputy PM Xavier Bettel has called for a balanced compromise in Luxembourg's heated pension reform debate, ahead of key negotiations with trade unions scheduled for 9 July. Speaking Thursday morning on RTL Radio, Bettel said he hopes for a "cocktail" solution that blends the government's plan to extend working years with union demands for higher contributions.
Bettel, a former prime minister and now coalition partner in the current government, emphasised the need to restore trust and preserve social peace. Everyone has to make some concessions, he said, acknowledging that the government's proposal has been met with strong criticism.
He added that while demonstrations are important, turnout at the upcoming OGBL/LCGB protest will not determine policy.
Read also: 'Don't go' – UEL president calls for boycott of union protest
Bettel also warned against political inaction, saying that the government cannot bury its head in the sand as people are living longer. Reflecting on his decade as Prime Minister, he said he always aimed to strike a balance – "most were not happy, but neither were they furious."
Nuanced NATO commitments
At this week's NATO summit in The Hague, Luxembourg reaffirmed plans to raise defence spending to 5% of its Gross National Income by 2035 – a figure that will translate to about €3 billion annually. If calculated based on GDP, the amount would rise to €4 billion, said Bettel, who joined the summit as Foreign Minister.
Read also: Luxembourg backs 5% defence goal but insists on 'flexible' path
He clarified that the increase will be divided into 3.5% for direct military expenditure and 1.5% for indirect support. Bettel pushed for flexibility in how such spending is defined, joking that some countries even include meteorological services as part of their defence infrastructure.
He later mentioned plans for air defence systems under discussion by the Defence Ministry. Bettel argued that defence spending also boosts domestic economy and renewed calls for a European defence industry: "If the pie grows, our slice grows too."
Read also: Missile shields and drones – Luxembourg commits to major defence upgrades
On foreign policy, Bettel denied that Europe is beholden to the United States but acknowledged NATO's heavy reliance on American military power. "Without the US, NATO is weak", he said. "We wouldn't be talking about 5%, but much higher numbers."
Addressing the Israel-Iran situation, Bettel said President Trump had assured them that the ceasefire would be holding. Bettel welcomed Qatar's decision not to respond to Iran's retaliation for US strikes on its nuclear infrastructure.
While the extent of the damage to Iran's nuclear programme remains unclear, Bettel noted that Israeli Prime Minister Netanyahu had managed to postpone a UN conference on Palestinian statehood. "I told Secretary of State [Marco Rubio] he gave Israel a big gift", said Bettel. "Now the US should ask for something in return – a ceasefire in Gaza."
