Your Weekly Recap for 1–5 September 2025.

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

  • Latest round of social talks ends with little progress
  • NATO Secretary General visits Luxembourg as nation joins PURL project
  • Five dead in violent Heiderscheid frontal car crash
  • 16 dead, multiple injured in Lisbon funicular accident
  • Fashion world mourns legendary creator Giorgio Armani

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1. Latest round of social talks ends with little progress

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  • Trade unions have criticised the government’s approach despite reform progress.

  • Employers' Association president blames unions for blocking efforts and spreading misleading claims with the aim of rallying support.

  • Pension reform moves ahead with gradual changes and mixed reactions.

Long way to go – Despite Prime Minister Luc Frieden describing the latest reform negotiations as “difficult but constructive,” Luxembourg’s major trade unions expressed deep disappointment, accusing the government of breaking with the spirit of social dialogue.

While some consensus was reached – including preserving the current collective bargaining system and delegating working time organisation to the social partners – unions criticised key proposals on Sunday work and retail hours as regressive. They argue the government has reverted to earlier, less favourable versions of legislation, especially concerning extended shop hours and Sunday work exemptions for small businesses. Union leaders claim they prevented a social rollback but lament the lack of a comprehensive agreement and the perceived erosion of prior negotiation positions.

"Fake news" – Michel Reckinger, president of the Luxembourg Employers' Association, blamed trade unions for the collapse of recent social negotiations, accusing them of blocking reform efforts and spreading misleading claims to rally opposition. He argued that while unions accepted minor adjustments, such as a gradual increase in pension contributions and retirement age requirements, these did not amount to genuine compromise.

Reckinger rejected claims that collective agreements were under threat and defended the proposal to extend Sunday working hours, stating many employees were willing to work longer for extra pay. He also criticised unions for allegedly spreading "fake news" to boost turnout at the June protest and claimed that only employers had advocated meaningful pension reform to protect future generations. While he welcomed the increased awareness sparked by the debate, he warned against turning pensions into a campaign issue ahead of the 2029 elections.

Pension reform – The government is pushing ahead with its July pension reform proposal, keeping the retirement age at 65 while gradually increasing the required contribution period for early retirement by eight months by 2030. To strengthen the system’s sustainability, social security contributions will rise to 25.5% from 2026, and high earners will see increased tax deductions for private pension contributions. A new benefit for those with small pensions is also planned.

While the government insists these measures will delay the pension system’s deficit until 2030, unions argue the reform lacks ambition and fails to offer long-term security. Employers echoed this concern, calling for more durable solutions instead of short-term fixes.

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2. NATO Secretary General visits Luxembourg as nation joins PURL project

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© SIP/Jean-Christophe Verhaegen

  • NATO Secretary General Mark Rutte visited the Grand Duchy as Prime Minister Luc Frieden announced the country's participation in the PURL initiative benefitting Ukraine.

  • The NATO chief praised Luxembourg's strategic and technological capabilities, such as developments in satellite technology and secure communications.

  • On the subject of Sunday's GPS jamming attack on an aircraft carrying EU leader Ursula von der Leyen, Rutte pointed out that is precisely the reason why the alliance is stepping up its efforts against hybrid and cyber attacks.

Ukraine weapons project – During NATO Secretary General Mark Rutte’s visit to Luxembourg, PM Luc Frieden announced the country’s participation in the PURL (Prioritised Ukraine Requirements List) project, a joint NATO and US initiative led by President Trump to purchase existing weapons, largely from American stock, and deliver them to Ukraine. Luxembourg joins Germany, Belgium, and the Netherlands in the programme, which is framed as a demonstration of allied cohesion amid ongoing Russian aggression and rising demands for increased defence spending. Frieden stressed that Luxembourg’s contribution was not only important for Ukraine but also vital for Europe as a whole.

Strategic interests – Alongside pledges of greater defence spending, Luxembourg highlighted its unique strengths within the alliance, particularly in satellite technology and secure communications. Defence Minister Yuricko Backes emphasised the role of the LUXEOSys satellite in earth observation, which NATO considers highly valuable. Secretary General Rutte praised these contributions, stating that NATO’s collective defence must remain strong enough to deter any attack on allied territory.

His visit also included meetings with Grand Duke Henri, Chamber President Claude Wiseler, SES in Betzdorf, and the NATO Support Agency in Capellen, underscoring Luxembourg’s integration within the alliance.

GPS jam on EU chief – On Sunday, a flight carrying EU Commission President Ursula von der Leyen from Warsaw to Plovdiv faced severe GPS jamming, forcing the crew of the Luxembourg airline LuxAviation aircraft to rely on alternative instruments and paper maps, which delayed the journey by an hour. Bulgarian authorities later reported clear indications of Russian involvement, though the Kremlin denied responsibility.

GPS interference is not uncommon in the Black Sea region, but backup systems ensured the flight landed safely. Rutte linked the incident to the alliance’s push to strengthen responses to hybrid and cyber threats, stressing that measures are underway to counter and prevent such attacks.

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3. Five dead in violent Heiderscheid frontal car crash

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  • A tragic car crash – the deadliest in 36 years – on the N15, between Feulen and Heiderscheid, took the lives of five people on Monday evening.

  • CGDIS director Paul Schroeder, interviewed by RTL, stated it was the most severe incident in his 35 years of service, both in terms of the circumstances of the crash and subsequent fires, and the number of victims.

  • Another fatal frontal collision happened in July, when a driver entered the A7 motorway in the wrong direction.

Five lives lost –A fatal road accident on the N15 between Feulen and Heiderscheid claimed five lives on Monday evening, making it the deadliest crash in Luxembourg this year. The collision occurred around 6.10pm when a van and a car collided head-on before bursting into flames that completely destroyed both vehicles. Extensive emergency services, including multiple ambulance units, firefighters, an Air Rescue helicopter, and a psychological support team, were dispatched to the scene, but all five occupants died instantly.

Forensic police launched an investigation, and the road remained closed during rescue, clean-up, and examination of the circumstances surrounding the tragedy. On Tuesday, the public prosecutor appointed an investigating judge to lead the inquiry, with the main task of establishing the identity of the five victims who burned in the vehicles. DNA analyses were to be carried out at Luxembourg's National Health Laboratory (LNS) in Dudelange.

According to RTL sources, one of the vehicles is believed to have moved into the opposite lane and collided head-on with a van, which is thought to have belonged to the Adapto transport service.

Rarely seen tragedy – Paul Schroeder, Director General of the Grand Ducal Fire and Rescue Corps, described the fatal crash as the most severe accident he has seen in his 35-year career, calling it “very tragic.” He explained that while accidents with multiple fatalities do occur, it is rare for two vehicles to catch fire at the same time, noting that ruptured fuel tanks can cause cars to ignite instantly. Schroeder highlighted the role of psychological support teams in helping both witnesses and emergency responders, who must also assist victims’ families. He added that despite this tragedy, the number of serious accidents has declined in recent decades thanks to speed cameras and improved vehicle safety.

This was Luxembourg's deadliest road accident in 36 years.

Not the only frontal collision –Earlier this year, a motorist drove the wrong way on the A7 and crashed head-on against another vehicle, which resulted in the death of one driver and serious injuries for the other. RTL contacted the Traffic Control Centre (CITA) to find out how these accidents happen, and what is being done to prevent them.

Luxembourg authorities report an average of three to four wrong-way drivers on the motorways each month, a figure likely higher in reality since many cases resolve before cameras can confirm them. Alcohol, disorientation, and deliberate violations are among the main causes. When such incidents occur, CITA activates emergency protocols, reducing speed limits to 50km/h and displaying alerts such as “wrong-way driver” or “Attention contresens,” along with instructions for motorists to slow down and move right.

With 1,300 cameras monitoring the network, half equipped with detection technology in high-risk areas like tunnels, CITA aims to identify and respond quickly. The National Roads Administration stresses that motorway ramps already use signs and markings to prevent errors, while physical barriers such as tire-damaging devices are considered too dangerous to implement.

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4. 16 dead, multiple injured in Lisbon funicular accident

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© AFP

  • Portugal is in mourning after a funicular train derailed in Lisbon on Wednesday evening, killing 16 people and injuring 21, five of them seriously.

  • The famous Elevador da Glória, a popular tourist spot in the Portuguese capital, was crushed "like a cardboard box" as it collided with a building. There are currently no known Luxembourgers among the victims, despite some being near the location of the accident. 

  • Following the tragic Lisbon accident, the national railway company CFL stated that the safety systems in the Pfaffenthal-Kirchberg funicular are fully prepared to avoid and safely respond to such incidents.

Horrific scenes –Portugal has declared a national day of mourning after a horrific crash involving the famous "Glória" funicular resulted in at least 16 deaths and more than 20 injured. Given the critical condition of some of the survivors, the death toll could still rise.

Investigators confirmed that several foreign visitors were among the dead, including nationals from Korea, Switzerland, and Portugal, with evidence suggesting victims also included Canadians, a German, a Ukrainian, and a US citizen. Witnesses described the funicular collapsing “like a cardboard box” after crashing into a building on one of the city’s steepest tourist routes, prompting Lisbon’s mayor to call it a tragedy unlike anything the capital had seen before.

Authorities stressed that maintenance protocols had been fully respected, but prosecutors have opened an investigation and all three of Lisbon’s other funiculars have been suspended for safety checks.

Popular tourist spot – The Elevador da Glória, immortalised in song in the 1980s by popular band Rádio Macau, is one of the trademarks of the Portuguese capital, connecting the Baixa (downtown) area to the Bairro Alto. Operating since 1885, the funicular - one of three operating in the capital - has become part of the city's identity.

A Luxembourgish traveller, Mandy Ragni, recounted the sombre atmosphere in Lisbon following the deadly crash. While no Luxembourgers were among the victims, Ragni, visiting the city with her family, described constant sirens, ambulances rushing through the streets, and locals speaking of nothing else as the tragedy dominated conversations and news screens.

Portuguese media reported that a snapped cable caused the carriage to lose its brakes and overturn, though Ragni noted she did not hear criticism of the operator. Having since returned home, she reflected on the deep sadness felt across Lisbon, with the Grand Ducal Court in Luxembourg also expressing solidarity with the city’s residents.

Safe in Pfaffenthal –In the wake of the Lisbon funicular tragedy, Luxembourg’s national railway company CFL has confirmed that the Pfaffenthal-Kirchberg funicular is secured by an automatic braking system that would immediately stop the cabins in the event of a cable failure or loss of resistance.

CFL stressed that this mechanism prevents any further movement of the cabins, ruling out a scenario similar to Lisbon. The operator added that the traction cable is monitored monthly by camera and undergoes thorough maintenance three times a year.

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5. Fashion world mourns legendary creator Giorgio Armani

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© AFP

  • Giorgio Armani, the Italian designer who redefined modern tailoring and created one of the world’s most recognisable fashion houses, has died at the age of 91.

  • Alongside his haute-couture exploits, Armani's multi-billion dollar empire included perfumes and even hotel ventures, always staying true to his sense of restrained elegance.

  • Hollywood's love affair with Armani spans decades, with the creator's name being a common theme during red carpet events. Multiple movie and fashion personalities paid tribute to the Italian icon at the time of his death.

Master of elegance –Giorgio Armani, the Italian designer who transformed modern fashion and built one of the world’s most iconic style empires, has died at the age of 91, his company announced on Thursday. Armani, who founded his fashion house in Milan in 1975 and went on to dress Hollywood stars and redefine red-carpet fashion, passed away peacefully surrounded by loved ones after continuing to work until his final days.

Known respectfully as “Il Signor Armani,” he also expanded into Emporio Armani, luxury hotels, and global lifestyle ventures, with celebrations for the label’s 50th anniversary only weeks away. Tributes poured in, with Italy’s culture minister hailing him as a cultural icon who turned elegance into a universal language and left a lasting imprint on fashion, cinema, and society. His funeral will be private, though a public funeral chamber will open in Milan this weekend.

Multi-billion dollar empire – Armani built one of the world’s most successful fashion empires by redefining elegance through simplicity and restraint. Drawing on Italy’s tailoring tradition, he revolutionised power dressing with lighter fabrics and looser cuts, dressing Hollywood stars from Richard Gere in American Gigolo to red carpet icons, and earning global acclaim for his muted palettes and timeless silhouettes.

From his early days as a window dresser to founding his Milan fashion house in 1975 with partner Sergio Galeotti, Armani expanded into perfumes, eyewear, hotels, and haute couture, creating a multi-billion euro brand while remaining faithful to his understated aesthetic. With revenues surpassing €2 billion before the pandemic and a personal fortune estimated at over $12 billion, Armani left behind a legacy of refined minimalism that stood apart from flashier contemporaries and reshaped the global fashion industry.

Hollywood and Fashion say goodbye –Hollywood stars and fashion leaders paid heartfelt tribute to Giorgio Armani after his death at 91, praising both his artistry and enduring influence. Julia Roberts called him “A true friend. A Legend,” while Claudia Cardinale said, “My heart is broken. Giorgio forever,” recalling how meeting him marked her transition to independence. Russell Crowe remembered buying his first Armani suit at Cannes in 1997, beginning “a love affair with Armani suits that continues to this day.”

Industry figures echoed the sentiment: Donatella Versace declared, “The world lost a giant today,” LVMH chief Bernard Arnault hailed his “unique style” and business acumen, and Kering’s Francois-Henri Pinault praised him as a “remarkable visionary” whose influence “will continue to inspire entire generations.” Michael Kors added he was “heartbroken,” calling Armani’s approach to elegance transformative for fashion worldwide.

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The best of... 📚

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And in case you missed it... ⚠️

  • Road accident A bus carrying Luxembourg's Under-21 football team overturned in Brittany, leaving eight injured, five of which were players. The national team was scheduled to play France on Friday, and the Luxembourgish Football Federation has submitted a request for UEFA to postpone the match.

  • Cultural controversy The upcoming performance by the Israel Philharmonic Orchestra at Luxembourg’s Philharmonie this November has sparked criticism from some who argue that hosting a cultural institution from a country at war risks sending the wrong political message. This was not the only controversy surrounding Israel and Luxembourg this week, after the approval of Israeli war bond sales.

  • World Cup 2026 qualifiersThe Red Lions fell to Northern Ireland in Jeff Strasser's eventful inaugural match as head coach for the Luxembourg men's football team, showing some promise despite the 3-1 loss.

  • Youth struggles – According to Eurostat, Luxembourg's youth unemployment rate ranks among EU's highest.

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