The biggest opposition party slammed Gramegna’s speech as “wasted financial policies, a budget of a political standstill, a pure matter of financial duty, and a discrepancy between aspiration and reality”. For the CSV, the 2022 Budget is mostly “a budget of empty promises”.
MP Gilles Roth, the co-president of the CSV’s parliamentary group, raised the issue of single parents as an example, pointing out that one in three people in this demographic struggles to make ends meet at the end of the month.
For Roth, it is “unacceptable” that electoral promises were broken. Not only was the tax table not adjusted for inflation, but the minimum tax rate was also not raised and tax cuts for medium-income workers are also nowhere to be found in the budget, Roth criticised.
According to the CSV MP, the government’s budget and financial policies call the country’s social cohesion into question. For this reason, the CSV demands an increase of the minimum tax amount and substantial tax cuts for those in class 1A, e.g., single parents.
The CSV supports quantitative growth only under the condition that investments are made into the qualitative well-being of the people, Roth explained.
Regarding housing, the CSV sees nothing but “announcement policies” that will all end up “getting stuck in a red-green-blue administration jungle”. Specific proposals by the CSV include making use of vacant lots, selective opening-up of perimeters, building higher and denser, less bureaucracy, higher taxation of capital gains during sales, and cracking down on speculation by introducing a new tax.
When it comes to tackling the climate crisis, the CSV wants to bank on “less bans and ideology” as well as “moral finger-wagging”. Nevertheless, the party fully supports the ambitious climate targets, which stipulate a 55% reduction of greenhouse gases by 2030 compared to 2005.
Proposals by the CSV include keeping energy prices attractive, increasing the use of electricity for production processes in companies, and tax incentives for investments in sustainable funds and projects.
The CSV also advocates for increased digitalisation, specifically a permanent improvement of Luxembourg’s fibre-optic network and a greater focus on digital tools in research as well as skilled trades and crafts. “Perfect examples” of such policies include Estonia, Denmark, and Sweden, according to the CSV.
Due to the numerous criticisms, the CSV will vote against the 2022 Budget in the Chamber of Deputies.
MP Gilles Baum, the president of the DP’s parliamentary group, naturally had quite a different reaction to the budget presented by his party colleague on Wednesday morning. Baum stressed that over the past years, the government “has done a lot for social equity” and will take its efforts even further with the 2022 Budget.
In particular, investments will be made into childcare, including free school meals, free after-school tutoring, and the re-indexation of child benefits from 1 January, Baum explained. All of these examples are proof of this government’s focus on social policies, Baum stressed.
Regarding the debate on potential fiscal adjustments, which will be held in the Chamber of Deputies in February, Baum described it as a “debate of good ideas”. However, it is important to “first bake the cake before splitting it up”, the DP MP argued.
Luxembourg’s housing crisis is increasingly becoming a social issue as well, Baum stated, urging the municipalities to assume their responsibilities and create housing space.
Baum argued that the climate crisis is “not an abstract issue”. He demanded a “change of mentality” from everyone so that the climate protection measures will be accepted. The substantial measures and efforts, which are for instance necessary in the transport and housing industries, will cost a lot of money over the next years, Baum acknowledged.
The MP added that the same is also true for the CO2 tax: Everyone must be taken into consideration, which has been accomplished with the introduction of deductions, according to Baum.
