Here are five things you should know at the end of this week:
1. Government unveils housing initiatives to boost construction and ease costs
Prime Minister Luc Frieden unveiled a set of measures aimed at reinvigorating housing construction and easing housing costs for households.
Affordable housing - Over the next three years, the state plans to acquire 800 homes from the private market, ready for immediate occupancy, to be rented out at affordable rates. This requires an investment of €480 million. Nearly €1 billion is earmarked over the next two years to realise publicly affordable housing projects.
High demand -Gilles Hempel, Director of the Foundation for Access to Housing, emphasised the pressing issue of social housing in Luxembourg. Speaking to RTL, Hempel noted that even individuals from the middle class are increasingly unable to afford accommodations on the open market: “A certain section of the population no longer stands a chance on the normal housing market.” The Foundation currently maintains a waiting list of approximately 1,200 to 1,300 households.
STATEC review of 2023 -The national statistics agency published its annual economic review on Monday. It underlined that Luxembourg’s real estate prices experienced their sharpest decline in the Eurozone in the summer of 2023, plummeting by 6.3% over the quarter and 13.6% over the year. This downturn was particularly pronounced for old properties, with houses and apartments witnessing declines of 7.8% and 6.3%, respectively, over the quarter. New apartments also saw a decrease (-4.2%). Additionally, Luxembourg recorded the largest drop in housing transactions over the year, with a staggering decline of around 40% in the 3rd quarter compared to the previous year.
2. Farmers protest around Europe against agricultural policy changes
The farmers’ movement gained momentum this week, spreading to Italy, Spain, Greece, Germany, the Netherlands, Poland, Belgium, and Romania.
Their complaints range from rising costs to meeting carbon-cutting targets, fuel prices, inflation, bureaucracy, and Ukrainian grain imports.
For now, Luxembourg’s farmers are refraining from protesting and focusing on a strong dialogue with the new government in February and March.
Blocked streets - Farmers have been blocking roads with their protests. Around 1,000 farmers with hundreds of vehicles blocked key roads into Paris, with some sleeping in their tractors overnight. Across the border, German farmers on Wednesday blocked the border crossings of Nennig and Remich, Wincheringen and Wormeldange, Wellen and Grevenmacher as well as Perl and Schengen. Traffic was severely disrupted.
Dialogue in Luxembourg - Plummeting prices, particularly for milk and beef, coupled with persistently high operational costs, have significantly squeezed profit margins. Energy expenses and labour costs have soared, impacting everything from production to animal feed costs. President of the Chamber of Agriculture, Guy Feyder, acknowledged that there is pressure within Luxembourg’s farming community, but will refrain from protesting in the coming weeks as discussions with the government are planned.
3. EU strikes 50 billion euros Ukraine aid deal as Hungary’s Prime Minister Viktor Orban backs down
Supporting Ukraine - The money will plug holes in the Ukrainian government’s budget to allow it to pay salaries and services, as its outgunned soldiers battle to hold back Moscow’s forces. Ukrainian President Volodymyr Zelensky hailed the deal in a video address to the EU leaders as “a clear signal that Ukraine will withstand and that Europe will withstand”.
Cutting off Hungary - The Financial Times reported Monday that a confidential proposal circulating in Brussels called for shutting off all EU funding to Budapest, with the aim of spooking investors and sabotaging Hungary’s fragile economy, should it refuse to play ball. The report drew a furious response from Budapest. Even in Brussels there was criticism: “I think it’s a shame if the response to blackmail... is more blackmail,” Luxembourg’s foreign minister, Xavier Bettel, said.
Consesus -While there was no suggestion of a direct quid-pro-quo, Orban did win assurances that Brussels would handle the question of Budapest’s blocked funds worth 20 billion euros with impartiality, the diplomat said. “He gave some ground,” said another European diplomat. “He saw that people were growing irritated, that there was a line not to cross.”
4. Protest by residents of Gare district calls for urgent increase in security
First protest in September -A WhatsApp group garnering hundreds of members called for the first protest back in September 2023. Not only residents but also local politicians joined the march.
More police presence - In a recent question-and-answer session at the Chamber of Deputies, Democratic Party (DP) MP Corinne Cahen addressed concerns about security in the Gare neighbourhood, saying residents “feel abandoned”. Interior Minister Minister Leon Gloden (CSV) stated that he intends to increase police presence in the neighbourhood.
5. TALI will represent Luxembourg in Malmö at Eurovision Song Contest 2024
In an unforgettable evening at the Rockhal, Tali Golergant was crowned winner of the Luxembourg Song Contest. The 23-year-old will be heading to Malmö in May to represent the Grand Duchy as it returns to Eurovision after a 30-year absence.
Power team -Presenting team Désirée Nosbusch, Melody Funck, Raoul Roos and Loïc Juchem accompanied their Luxembourgish and international audience through 2.5 hours of musical entertainment on this historic evening for Luxembourg. Surprise performances throughout the evening included reappearances from previous Luxembourg winners Vicky Leandros and Anne-Marie David, as well as performances from 2009 winner Alexander Rybak, and Luxembourg folk favourites Shëppe Siwen.
Top finalists -The real focus of the night was on the eight artists selected in the first stages of Luxembourg’s Song Contest. TALI, Edsun, Krick, CHAiLD, Joël Marques, Naomi Ayé, Angy and Rafa Ela, and One Last Time gave it their all on stage, but there could only be one winner.
As it happened: TALI wins Luxembourg Song Contest
Business & Tech – Vietnamese property tycoon Truong My Lan is accused of embezzling $12.5 billion by investigators after being arrested in a national corruption crackdown. There are 42,000 victims of the scandal.
Science & Environment – A new treatment shows promise against the deadly neurodegenerative disease ALS.
Entertainment – “Guten Tag, Babes": Pop superstar Adele announced four open-air concerts in Munich in August, her first shows in mainland Europe since 2016.
Your Weekly Recap is published every Friday at noon. Read earlier versions.
