During his budget speech at the Chamber of Deputies on Tuesday, Christian Social People’s Party (CSV) MP Maurice Bauer stressed that a dynamic and diversified economy is essential to finance Luxembourg’s welfare state.
The 2026 state budget forecasts a central government deficit of €1.49 billion – approximately €400 million more than projected last year. Despite what Finance Minister Gilles Roth referred to in October as “more difficult times”, Bauer assured Parliament that the CSV-DP coalition government intends to maintain investment in the country and its residents. He outlined several recommendations for the government’s fiscal approach.
Among his proposals was the introduction of a summary page on tax returns, clearly outlining how taxpayers’ money is spent – a measure already implemented in countries like New Zealand. Bauer also highlighted various anti-poverty initiatives enacted by the coalition over the past two years. He pointed to measures introduced in 2024 and the recently unveiled “ambitious” national poverty plan as evidence of continued support for vulnerable groups.
The MP emphasised that nearly €15 billion, or 46% of total expenditure in the 2026 budget, is allocated to combating poverty. He noted that the automatic payment of the cost-of-living allowance and energy bonus has already increased financial aid for at least a quarter of households this year. Bauer recommended extending this automated system to the rent subsidy and potentially other benefits.
Following the presentation of the budget report, parliamentary proceedings are set to continue on Wednesday morning with a statement from Finance Minister Gilles Roth. The agenda will then advance to the debates and final vote on the 2026 budget bill and the multi-year budget framework.
