Social policy in state spendingChamber of Employees calls for social investment and fairer taxes ahead of 2027 budget

Carine Lemmer
adapted for RTL Today
Chamber of Employees (CSL) director Sylvain Hoffmann has urged the government to put social investment, affordable housing and tax fairness at the heart of the 2027 budget, which is presented on Wednesday.
© Canva / AS Photography

Speaking on RTL's 'Invité vun der Redaktioun' on Tuesday, Hoffmann called for a stronger focus on social policy in state spending. He said the government should invest more in affordable housing, make sure the national anti-poverty plan is reflected in the budget, and give more prominence to measures supporting the ecological transition. On the revenue side, he said the CSL expects the government to deliver greater tax fairness.

Housing must be a top priority

Hoffmann acknowledged that the government is taking some steps on housing, but said current investment is not enough and the sector must become a genuine priority. Money alone will not solve the structural crisis, he added. Legislative reforms are also needed.

He pointed to vacant properties and undeveloped land being held back from the market, and criticised the lack of progress on property tax reform, saying there has been no news on a possible increase for some time.

Ecological transition lagging

Hoffmann warned that progress on the ecological transition remains slow. The CSL backs government efforts to help people switch to greener alternatives, he said, but schemes such as "social leasing" for electric vehicles are badly underfunded. Under the 2027 budget, only around 1,000 people a year would benefit. At that rate, he fears Luxembourg will miss its ecological targets.

Public finances 'comparatively strong'

Hoffmann described Luxembourg's public finances as comparatively strong, with debt still among the lowest in Europe. Even so, he said, revenue and spending must be closely monitored after the extra spending during recent crises.

He said current revenue will exceed current expenditure this year, and that any deficit is down to investment in the future, which he considers justified. He also welcomed the finance minister's assurance that higher defence spending will not come at the expense of social policy.

Tax system 'still unfair'

On tax reform, Hoffmann repeated the CSL's support for a single tax class, but said the overall system remains unfair. Households pay more tax than businesses, he argued, and the principle that "everyone pays according to their capacity" is no longer upheld in Luxembourg.

Corporate taxation is too low, he said, and now would be the wrong time to consider further cuts.

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