Electricity will continue to be subsidised at four cents per kilowatt-hour, while heating oil and gas get 15 cents per litre and cubic metre, respectively, until the end of 2027. The five-cent-per-litre fuel discount on petrol and diesel will expire in March next year.

After the signing of the agreement, Prime Minister Luc Frieden was satisfied that a compromise had been found in spite of the volatile international environment:

"In a democracy, in a social democracy, it is of course always necessary for people to make concessions to one another, but our objectives were shared", he said. "The goal was to strengthen people's purchasing power, and to give businesses and people predictability, without losing sight of our climate goals and energy security."

He added that the agreement would benefit the public's purchasing power as well as competitiveness for businesses.

OGBL president Nora Back said the index was safe, and that it was a big step that the measures had been extended for 12 months. She added that it was a good thing that the measures had not been decided in a hurry last week, but instead made on Thursday based on new data from STATEC.

Phasing out the fuel discount was also important, as a further extension could make it impossible to achieve the country's climate goals. In addition, the impact on people's wallets would be marginal.

The LCGB trade union, however, said it would have preferred all the measures to be extended. The fact that the fuel discount would be extended by only two months would be to the detriment of the people using the country's petrol stations, said president Patrick Dury.

The CGFP's Romain Wolff said it was important that decisions had now been taken. This week, the civil service union had agreed to sign on the condition that all measures, including the fuel discount, be extended for just three months. Despite this not unfolding the way they planned, the CGFP signed Thursday's agreement nonetheless.

"Yes, we said three months, because that's a manageable period. Now it's twelve months. I think the people out there would not have understood if we had been unable to come to such an agreement. That's why I don't feel regret in this situation. I can easily support it."

Union of Luxembourg Enterprises (UEL) president Marc Lauer thanked all those involved for making it possible to reach an agreement, adding that predictability is not only important for households, but also for businesses. Thursday's agreement, if everything goes to plan, would ensure that no more than two indexation tranches are triggered over a 24-month period.