The billing model for Luxembourg bus services was adjusted in autumn 2024 after anomalies were uncovered.
The case came to light in July, when police, acting on orders from the European Public Prosecutor’s Office, carried out searches at the premises of major bus companies, the Luxembourg Public Transport Administration, and the home of a former senior official. Between 2022 and 2024, public transport operators had systematically billed for electric bus services while in reality deploying combustion engine or hybrid buses.
As a result, companies are alleged to have received more public funds than they were entitled to. The Ministry of Mobility has so far only confirmed its full cooperation with European judicial authorities. The government also gave little additional detail in response to a parliamentary question from the Luxembourg Socialist Workers’ Party (LSAP).
The reply from Minister for Mobility and Public Works Yuriko Backes and Minister of the Economy, SME, Energy and Tourism Lex Delles only stated that the irregularities were revealed last autumn during analyses by the General Inspectorate of Finance (IGF), the supervisory authority for the European FEDER programmes. The billing model was subsequently adjusted and, in case of doubt, only the amount corresponding to a combustion engine bus is paid.
The extent of the financial damage remains unclear. To date, the EU has paid the Luxembourg state around €18.8 million.
In autumn, government representatives are due to appear before the Chamber to provide explanations to MPs in committee. However, ministers have already cited the ongoing investigation and judicial secrecy, meaning many questions are likely to remain unanswered.
