Schmit's letter is seven pages long and poses a series of questions regarding the state of Luxembourg's artisan sector. Businesses have been put under immense pressure with more than 100,000 jobs in danger.
No matter what the government's path out of the confinement will look like, only the future can tell if the strategy has been adequate.
According to Schmit, a crucial condition for survival will be the ongoing support of the government, for which he argues vehemently. At the moment, businesses record profit declines of up to 50%.
Schmit welcomes the efficiency of the governmental support the sector received thus far, even though there have been a row of administrative and technical issues due to the large number of employees.
Nonetheless, the entrepreneur also offers strong criticism towards the loan strategy that has been put into place. According to Schmit, this will create an unfeasible long-term problem.
The secretary general of the artisan federation also addressed the lack of support for independents, noting the conflict of interest created when people have to pay equal taxes with unequal returns. Schmit argues the practice would create second-class citizens, an intolerable state if we are to persevere over the corona crisis.
It has become apparent that a continuation of partial unemployment is inevitable and thus essential for the survival of businesses. Some companies in the event businesses will have to suffer from this state for even longer. Short-time employment will need to be adjusted too.
Luxembourg's economy, as well as the global one, is a complex organism, which will eventually collapse if the interior system is disturbed for too long. Politicians need to understand this, Schmit pleads. Otherwise, the damage might become irreparable.
The Grand Duchy has kept its triple A status. Now it is the time to demonstrate, what it means to carry this label.
