“It’s a budget built on stability in an unstable world”, was how finance alderman Laurent Mosar of the Christian Social People’s Party (CSV) characterised next year’s budget when presenting it to Luxembourg City’s municipal council. Mayor Lydie Polfer of the Democratic Party (DP) echoed this message, saying the city was fortunate to live in an environment where stability still formed part of daily life. Ordinary revenue amounts to €1.3 billion and ordinary spending to more than €900 million.
According to Mosar, these solid revenues make it possible to pursue an ambitious investment programme worth more than €700 million – a new record – with funding channelled almost entirely towards new infrastructure. He argued that such a high level of investment would have a positive impact both in the capital and across the country, pointing out that the city helps ensure companies have work for their employees. Mayor Polfer listed several major projects included in the programme.
The biggest single commitment is the €33 million expansion of the Beggen wastewater treatment plant. Other key items include the €13 million bridge linking Cents to Weimershof via Neudorf, the city’s €11 million contribution to the ongoing expansion of the Luxtram network, the €10.5 million extension of the “Rocade” administrative building in Bonnevoie, and a €10 million upgrade of the athletics stadium in Hamm.
But that was far from the full list. Mosar also took time in the council meeting to underline the scale of the city’s social spending. He said it was important to lay out the figures clearly, noting that some critics claimed he focused solely on security and large prestige projects. In reality, he said, social expenditure would reach a record level of €183.1 million in the 2026 budget.
Mosar also highlighted that the city was allocating around €300 million to VEFA housing projects – off-plan purchases – and questioned how this compared with the state’s own efforts. He said that while the government frequently announced major plans for VEFA investment, he had the impression that Luxembourg City was the only actor investing at scale. He pointed to the city’s total of €303 million.
The debate on the budget is scheduled for Friday, with a vote to follow on Monday.
