Heinrich is worried by the current evolution of the state's finances, suggesting in his interview that the governmental support during the lockdown might have been premature and overly generous. He considers the crisis to unfold over various phases and fears that now all reserves may have been used up already. The deficit could be countered for one or two years maximum, Henrich stated.
The former director does not see a risk for the Grand Duchy to fall into a debt crisis however, but he believes that the room for agency will be significantly decreased. Problem areas might be the country's pension system and the ageing of the population.
A consolidation of the state's finances would be unavoidable, Henrich further explained. To guarantee the success of this process, the administration needs to set a coherent series of measures, and eventually raise certain taxes, he stated.
When asked about the recent debate on tax reforms, Heinrich admitted his interest in the topic, but conveyed that the current system had more room for improvement than just that of the two individual taxes proposed on wealth and inheritances.
