Discussions on the 2028-2034 European Union (EU) budget, officially known as the Multiannual Financial Framework (MFF), are proving "very difficult", with Luxembourg positioned somewhere in the middle of the diverging viewpoints.
Prime Minister Luc Frieden made the remarks on Tuesday in response to a question from Alternative Democratic Reform Party (ADR) parliamentary group leader Fred Keup during question time in the Chamber of Deputies.
While Germany and a number of other EU countries are calling for austerity measures, Frieden made the case for striking a balance.
The Luxembourgish Prime Minister attaches great importance to a strong EU that invests heavily in innovation.
He categorically rejected the idea of raising corporate taxes to generate additional revenue.
He was, however, open to the idea of using revenues from levies on imports that fail to meet EU environmental standards, or from the European Emissions Trading System, to help fund the EU.
A final position is still a long way off, Frieden noted, with negotiations on the EU budget expected to run at least until the end of the year.
