After several months in office, Bouchard says he has found that most French nationals living in Luxembourg are broadly satisfied. Many initially planned to stay only a few years but ended up settling long term, he said. Bouchard noted that their concerns largely mirror those of other residents: housing affordability, rising living costs, and the economic slowdown that has made job prospects less certain. He also observes a growing sensitivity around security issues.
For the 126,000 French cross-border workers who live in France but work in Luxembourg, the primary attraction remains access to well-paid jobs, according to Bouchard. Their main complaint, unsurprisingly, is transport, he said, as commuting by car or train has become increasingly difficult as traffic volumes rise. Bouchard explained that they are also affected by the economic slowdown and by the challenge of balancing life between two countries.
Cross-border workers account for roughly a quarter of Luxembourg’s workforce. Bouchard described this as both an opportunity for Luxembourg and for Lorraine in France, as thousands of Lorraine residents benefit from higher wages.
He explained further that the priority is to ensure that the Greater Region develops in a balanced and harmonious way. Bouchard considers that the area should be approached as a single large cross-border agglomeration whose growth must be coordinated. That, he acknowledged, is complex given the fiscal, social, and regulatory differences between countries.
Asked about how France could incentivise French healthcare workers to work in France, Bouchard answered that Luxembourg’s attractive salaries have drawn professionals away from certain French regions, exacerbating existing shortages. He noted that the Grand Est region in France has introduced incentives to encourage healthcare staff either to remain in Lorraine or relocate there. This remains a sensitive political issue, frequently raised by local elected officials, according to Bouchard.
Another measure agreed in December aims to improve access to cross-border healthcare, he explained. Bouchard said that French residents insured in France will be able to consult certain doctors in Luxembourg and be reimbursed at Luxembourg rates by French social security. A pilot scheme has begun in dermatology and may later be expanded, according to Bouchard.
Working remotely is one of the most pressing demands of cross-border workers, with most wishing for two days per week. According to Bouchard, both governments agree in principle that the current limit should be extended. He clarified that, at present, workers can work remotely from France for up to 34 days per year while continuing to pay income tax in Luxembourg.
Bouchard explained that, in current negotiations, Luxembourg has proposed raising the threshold to 45 days, while France has advocated up to 90 days, roughly two days per week. Negotiations now focus on finding a compromise and addressing the fiscal implications, he said. Bouchard argued that additional remote work days reduces France’s tax revenue and that some form of compensation is needed, with discussions focused on how to do so.
He expressed optimism that progress can be made soon, emphasising the practical benefits: each extra day of remote work means fewer cars on the road, less congestion on trains, and less time spent commuting. “Every additional day of remote work”, he said, “is a day when people don’t have to sit in traffic for hours, and that benefits everyone.”
Another key issue is compensation for unemployment benefits paid to former cross-border workers. Currently, Luxembourg reimburses France for three months out of a potential twelve months of unemployment benefits, even though contributions were paid in Luxembourg, Bouchard said. He explained that discussions revolved around this topic during the most recent Integovernmental Commission that took place in December.
According to Bouchard, France is pushing for what it calls a more equitable arrangement, either through a bilateral agreement increasing reimbursement to five months, or through a broader reform of EU regulations that would shift the burden to the country of employment. However, European negotiations are slow, and no agreement has yet been reached.
Bouchard described this as a priority matter for upcoming bilateral talks, noting that for France there is a significant financial shortfall under the current system.
Addressing the question regarding further collaboration in specific economic sectors, Bouchard said that economic ties between France and Luxembourg are already close. He added that France is one of Luxembourg’s main investors, suppliers, and trading partners, and French banks, automobile companies, and steel companies are deeply embedded in the local economy.
Looking ahead, Bouchard highlighted several promising sectors, including artificial intelligence, quantum computing, and data technologies, where French start-ups are, he said, particularly active. Bouchard cited the example of Mistral, a leading French AI company that has signed an agreement with the Luxembourg government, as well as French firms involved in quantum supercomputing projects.
According to Bouchard, space cooperation also remains important, with French companies contributing to satellite production.
Bouchard also mentioned a new important sector: defence. It is emerging as a particularly strategic field in the current geopolitical context. Luxembourg is increasing its defence spending, and French defence companies are involved in projects ranging from armoured vehicles for the Belgian-Luxembourg battalion to air-defence systems.
In Bouchard’s view, defence cooperation illustrates the depth of the bilateral relationship, concluding that: “Defence is truly an area where, given the quality and expertise of French companies, Luxembourg’s needs and determination to invest in this field, and the close ties between our two countries and economies, there is considerable scope for further cooperation.”
