The government is bracing for the possible effects of an international energy crisis. Speaking on RTL's Journal, Prime Minister Luc Frieden acknowledged that the situation had become more pressing in recent weeks. The repercussions of the war in Iran, including the closure of the Strait of Hormuz, would inevitably affect Luxembourg, he said, even if the country had no direct influence over the course of events.
The surge in energy prices is taking a heavy toll on households and businesses, and Frieden moved to address that pressure on Wednesday by announcing a tripartite meeting bringing together government representatives, employers, and unions to discuss concrete measures. The goal is clear: to find ways to preserve household purchasing power at a time when it is under constant strain.
One example of the kind of relief measure already in place is the wage indexation due in June, a mechanism that Frieden noted is far from universal across Europe. He was also keen to reassure Luxembourg households that they would not have to rely on the index alone to weather the crisis.
"Of course, if we are meeting, it is to reach agreements on measures for households and businesses", he told RTL on Wednesday evening.
He declined, however, to be drawn into a discussion on the minimum wage, a subject that Michel Reckinger, president of the Luxembourg Employers' Association (UEL), suggested had no place in an energy-focused tripartite. Frieden told RTL that he wished to discuss the matter with social partners before making any public pronouncements.
Luxembourg Confederation of Christian Trade Unions (LCGB) president Patrick Dury described the tripartite meeting as the "last chance to keep Luxembourg's social model alive", reflecting the frustration union representatives have felt in recent months over the government's approach to social dialogue. Frieden responded by reaffirming his belief in social dialogue.
The prime minister was clear that the immediate priority is protecting the purchasing power of Luxembourg households while also ensuring the survival of the country's businesses, which are equally under pressure from rising energy costs. As for what specific measures might emerge from the talks, that remains to be seen – Frieden was unable to commit to a precise date, saying only that the meeting would take place at the end of May or the beginning of June.
