On Monday, the Democratic Party (DP) parliamentary group reflected on the past legislative session and reaffirmed its commitment to social dialogue – just two days ahead of a crucial meeting between the government, employer representatives, and trade unions on 9 July. The DP emphasised its pursuit of broad consensus, aiming to engage not only social partners but also opposition parties in key discussions.
Read also: Government, unions, and employers to address six controversial points on 9 JulyDP parliamentary group leader Gilles Baum identified the housing market as one of Luxembourg’s most pressing challenges. He highlighted government measures already in place, including reductions to the property registration tax and an increase in the tax credit for notarial acts (‘Bëllegen Akt’) to €40,000.
The government also plans to maintain targeted support for off-plan property purchases (VEFA). Baum noted that the state has acquired more than 500 homes through its VEFA purchasing programme.
Over the entire legislative term, nearly €2 billion has been allocated for direct state intervention in the housing market, he added.
Further reforms to vacancy and property taxes are intended to stimulate the real estate sector while mitigating impacts on middle-class households, Baum said. The DP leader stressed the party’s longstanding dedication to social dialogue, recalling that former DP Prime Minister Gaston Thorn established Luxembourg’s tripartite framework – now a cornerstone of the country’s social model.
“The DP understands the importance of social peace for our country, and all our MPs have clearly received last Saturday’s message”, Baum stated.
Read also: Estimated 14,000 take to the streets against pension reformsThe DP parliamentary group leader acknowledged the demands of trade unions and demonstrators who participated in the major protest on 28 June, recognising their call for greater government engagement. He assured that the DP will approach Wednesday’s meeting with a “very open mind”, particularly regarding pension reform discussions.
However, Baum outlined clear boundaries for the DP’s stance on pension changes. The party firmly opposes any reduction in pension amounts and will not support modifications to the system that counts ‘baby years’ or university studies as contribution years.
No formal decisions are anticipated at Wednesday’s meeting, which is expected to serve as the starting point for further negotiations.
Separately, MEP Charles Goerens provided an overview of the international political landscape, reiterating his caution to the European People’s Party (EPP) against forming majorities with right-wing or far-right parties. Instead, he urged the EPP to prioritise alliances with centrist and progressive groups – including the Social Democrats, Liberals, and Greens – to sustain compromise-driven policymaking.
