In conversation with RTL Radio on Monday, PM Luc Frieden discussed topics including competitiveness, climate policy, and defence spending.
Frieden stressed that environmental protection must involve both citizens and businesses, saying that climate and economic policies should complement each other rather than compete.
While he underlined that climate action is essential, he argued that it should be encouraged rather than imposed, with research and innovation playing a central role, particularly in the pursuit of energy independence. When asked whether he recognises the central role of policy in reaching climate goals, Frieden shifted his answer towards highlighting that Luxembourg is momentarily reaching its targets, before advocating for administrative simplification to keep up with global industrial competition.
The Prime Minister further added that he'd recently learned that only 10% of Luxembourg's forests were still intact, to which he said it should be possible to combine "health with wealth".
As to how the PM planned on balancing a continued financial support of citizens' green transition with the recent heavy defence spending, Frieden explained he saw increased defence spending as unavoidable. "That money wasn't initially planned, neither on a European nor national level, which means that we might have to take on a debt [in the short term]".
He also pointed out that a strong economy is the foundation for effective social, environmental, and security policies, linking this to the recent failure of the EU "omnibus" bill, which aimed to reduce bureaucracy but failed to win a majority in the European Parliament. Frieden regretted the outcome, warning that without simplification, Europe risks undermining its own industry. "The idea is not to change our goals, but the path that gets us there."
Regarding the proposal to use frozen Russian state assets to support Ukraine, Frieden said this would be morally justified but legally complex, especially given the Commission was unable to explain the logistics behind this. "I see it as morally correct to use the aggressor's money as reparations for the attacked," the PM explained, stressing that he supported the idea as long as money wasn't confiscated.
Finally, addressing Luxembourg's social dialogue, Frieden clarified that disagreements over pension reform do not mean that communication with social partners has broken down, reaffirming his commitment to continued dialogue. "We'll do everything in our power to keep up dialogue, but we don't have to agree on everything."
