DP parliamentary leader calls for renewed social dialogue and gradual reform

There's a sense that social dialogue in Luxembourg has taken a serious hit, but, as Baum put it, "dents can be repaired". Speaking on the show, he argued that the situation was not beyond fixing.

He acknowledged that discussions between employers, trade unions, and the government had become strained, though there had been progress on specific topics such as Sunday work and shop opening hours. According to Baum, tensions came to a head when the unions walked out of the Standing Committee on Labour and Employment (CPTE).

To address this, he met last week with the Syndicates' Union alongside fellow DP heavyweights Carole Hartmann, Corinne Cahen, Gérard Schockmel, and André Bauler. Both sides agreed to maintain communication with the government, even if that meant switching to bipartite meetings directly with the relevant ministers. "It's important to keep talking and look for solutions," Baum said, noting that in an era of WhatsApp and TikTok, real dialogue was more vital than ever. He added that social dialogue remained one of Luxembourg's biggest strengths and key to preserving its social peace, stating that "it's what sets us apart from other countries".

Pension reform: gradual and adaptable

When questioned about criticism that the pension reform lacked long-term vision, including from within his own party's youth branch, Baum defended the government's cautious, step-by-step approach. He said there were too many unpredictable variables for a sweeping reform: the economy had slowed to about 1–1.5% growth, demographic trends showed that population growth no longer guaranteed enough contributors to the pension fund, and the cross-border labour pool had largely "dried up". On top of that, the impact of artificial intelligence and digitalisation on employment was still unknown.

For these reasons, he argued, Luxembourg needed a "policy of small steps" with regular evaluations of the pension system. Current plans involve a mix of contribution increases and gradual adjustments. Baum described it the right approach, adding that many young people already accepted they would have to work longer in the future.

Fighting poverty and improving wellbeing

Responding to the criticism of the Luxembourg Socialist Workers' Party (LSAP) that the coalition between the DP and the Christian Social People's Party (CSV) had done too little to improve people's wellbeing, Baum pointed to a list of concrete achievements: free school books and primary school meals, tax exemptions for the minimum wage, higher child and housing benefits, and the introduction of free public transport and primary energy support.

He announced that the national action plan to combat poverty would be presented to Parliament later this year, describing it as a key framework to actively support those with low incomes. He pointed out that wellbeing could mean many things, finding housing, securing childcare, or ensuring children do well in school, and stressed that financial stability was still central to the government's social policy.

Towards full-time MPs?

Although the Constitution officially sets the start of the parliamentary year for the second Tuesday of October, MPs have already been working since 3 September due to the growing legislative workload. Baum noted that 26 of the 60 MPs are civil servants who are fully released from their public roles, while the remaining 34, a mix of employees, freelancers, and retirees, currently receive 20 hours of political leave.

He said the DP would not oppose increasing that to 40 hours, provided the Chamber becomes socially and professionally diverse, calling for farmers, doctors, lawyers, and craftspeople to be represented. He believes a gradual move towards full-time parliamentary work is inevitable but insists that MPs who wish to continue their professional activity should be free to do so.

On the agenda

The DP politician also took the opportunity to outline upcoming priorities such as the "once-only" social portal, literacy and housing measures, as well as energy resilience ahead of the 2026 budget.

This week, the government will deposit the 2026 state budget, and several major legislative projects are still on the agenda. Among the priorities Baum listed were the "once-only" social portal, which would allow citizens to apply once for social aid and then automatically renew their benefits.

Another project Baum mentioned is Project Alpha, the initiative to generalise French-language literacy and reduce school failure linked to Luxembourg's linguistic complexity. Added to these projects is tax individualisation, giving households more flexibility in how they are taxed. He also highlighted new housing measures, noting that access to housing remains the top concern for residents, with around 5,000 households still waiting for accommodation. In addition, efforts are under way to make the energy supply more resilient, alongside further reforms in the health sector, he concluded.