During this meeting, the representatives of the three majority parties tried to find a common position, mainly regarding the demands put forward by the trade unions.
According to information obtained by RTL, the government officials discussed the cost of adjusting the tax table to inflation. The Independent Luxembourg Trade Union Confederation (OGBL), the Luxembourg Confederation of Christian Trade Unions (LCGB), and the General Confederation of the Civil Service (CGFP) agreed ahead of the tripartite meeting to collectively push for such an adjustment.
Despite the fact that Prime Minister Xavier Bettel stated after the preliminary talks on Tuesday that fiscal policy is usually not within the authority of the tripartite, it is unlikely that the governing parties would negotiate for hours if the matter did not come up on Friday.
According to RTL sources, the trade unions may be willing to accept that not all tax brackets would be adjusted immediately. The employer representatives, meanwhile, did not demand to discuss fiscal policy. If the government gives in to this demand, employer representatives will almost certainly insist on a consideration.
The government pledged to fully compensate businesses for a potential third wage indexation in 2023 under the last tripartite agreement. If this wage indexation occurs around the time predicted by the National Institute of Statistics and Economic Studies (STATEC), it will only be compensated for three months, as the government’s pledge expires at the end of 2023.
RTL sources suggest that the government may therefore appease employer representatives by proposing an extension of this compensation. In their bilateral talks with the government, employer representatives also pointed out that many businesses are still struggling due to high energy costs.
Another item on the tripartite agenda is the phase-out of the energy aids, which were introduced in 2022. The government and the social partners will have to determine how to extend or end the measures without causing an inflationary shock in 2024.
