Commenting on recent government tax measures, Wagener expressed approval, stating, “We are emerging from a challenging period marked by multiple crises. […] We need growth impulses through taxation, and these measures come at an opportune time.”
Wagener noted his concern over the observed slowdown in economic growth in recent years. He argued that growth is essential to maintaining the pension system’s viability, emphasiding that it must remain attractive to ensure long-term stability.
Despite recent adjustments to the pension system, Wagener warned that future challenges remain. “The ‘pension wall’ may have been pushed back, but it still exists,” he said. He pointed out that financing the growing costs of the pension system will require 1.2 million contributing employees, a number he believes will not be achievable in 30 years.
To address these challenges, Wagener defended the proposals from employers’ representatives on the Economic and Social Council, which advocate for spending cuts to protect the system. These proposals would particularly affect high-level pensions. When asked about the impact of proposed cuts, which could reduce pensions to €2,623, Wagener acknowledged the concerns of those affected.
He underscored that pensions still need to be adjusted in line with the index. To the remark that this only represents compensation for the loss of purchasing power, he replied that the cuts are only part of a broader set of proposals. “We have no interest in reducing pensions,” Wagener stated.
The UEL argues that without intervention, the “cracks” in the pension system will become significantly more severe. Marc Wagener questioned whether it is the state’s role to fund high pensions for 20 to 25 years.
Wagener criticised the employees’ representatives’ proposal to increase contributions in the event of a pension system deficit. He described this approach as “the wrong way to go,” asserting that it undermines competitiveness and damages Luxembourg’s credibility. According to Wagener, such a move would signal a failure to manage problems effectively and a reluctance to pursue necessary reforms that ensure social justice and uphold the welfare state. He warned that while this approach might offer a temporary solution, it ultimately fails to address the underlying issues. “We might gain ten years, but in the end, we won’t have achieved anything,” Wagener concluded.
