Luxembourg City continues to face significant retail vacancies, with 11% of commercial units currently unoccupied, according to Maurice Bauer, Christian Social People’s Party (CSV) member of the capital’s municipal executive board (“Schäfferot”). Speaking on RTL Radio Wednesday, Bauer acknowledged the ongoing challenge while highlighting recent progress.
The vacancy rates show notable disparities across neighbourhoods. While the Ville Haute area has seen improvement, the Gare district maintains a 14% vacancy rate. Municipal authorities are actively engaging landlords and planning a franchise fair to attract new businesses. Some positive developments have emerged, with 37 new establishments opening in Gare the previous year and additional openings expected soon, including a public administration office. Bauer, who oversees commerce matters, could not provide further details about these upcoming projects.
When addressing criticism about the lack of mid-range retail options, Bauer emphasised the municipality’s strategic approach: “It’s always a question of strategy. Some brands require multiple locations before entering the market, and suitable spaces aren’t always available. Rental costs also play a significant role,” he explained.
Bauer noted that extended opening hours remain at individual retailers’ discretion, while politicians should focus on creating favourable framework conditions.
While Esch-sur-Alzette introduced a tax on vacant commercial properties in October 2024 (though not yet implemented), Bauer confirmed Luxembourg City has no immediate plans to follow suit. “We’re monitoring Esch’s experience with this measure before considering similar actions. Currently, it’s not on our agenda,” he stated. The Esch tax received approval from the Ministry of Home Affairs earlier this year and is expected to take effect shortly.
Bauer will be the next budget rapporteur in the Chamber of Deputies, which he describes as an “honour” while emphasising fiscal responsibility. “Every euro we want to spend must first be earned,” the MP reiterated, referencing Finance Minister Gilles Roth’s recent announcement that the central government deficit will remain under €1.29 billion this year – below initial projections.
While pledging to protect social policies from cuts, Bauer argued for economic revitalisation: “Our priority remains social policy, but we must simultaneously revive, strengthen, and diversify our economy – something that hasn’t been adequately addressed in recent years.”
The remarks came in response to criticism from MP Franz Fayot of the Luxembourg Socialist Workers’ Party (LSAP), who characterised Luxembourg’s reliance on the financial sector as “gambling with the country’s future.” Bauer dismissed the comments as predictable opposition rhetoric: “What else would he say? As a member of the opposition, he has to tell us something, after all. I think he knows that as coalition partners, we’re united in delivering public relief.”
A key focus of Bauer’s forthcoming budget report will be improving uptake of existing social benefits. The rapporteur highlighted systemic underclaiming among eligible disadvantaged households as a priority issue requiring attention.
When addressing criticism from CSV parliamentary leader Marc Spautz regarding the government’s handling of social dialogue, Maurice Bauer offered a measured response: “We have certainly made mistakes, and we make them every day.”
The CSV politician emphasised, however, that the focus remains on collaborative solutions. “It’s about working together – with majority parties, parliamentary groups, and social partners – to find constructive outcomes through dialogue,” Bauer stated, adding, “This is the path we need and the one we will follow.”
Reflecting a common CSV refrain, Bauer noted his party’s broad-church nature: “As a people’s party, it’s natural we encompass diverse viewpoints.”
