This was the starting point for the latest edition of Cosmopoly, where the team and their guests set out to understand how the country reached this point. Introducing the discussion, Maurice Fick from RTL Infos noted that Luxembourg has been brought back to reality and no longer resembles the “paradise” it was once perceived to be.
The debate brought together several voices with different perspectives on poverty in Luxembourg: journalist Maurice Fick from RTL Infos as host; MP Paul Galles of the Christian Social People’s Party (CSV); Alexandra Oxacelay, director of the association Stëmm vun der Strooss; Caroline de Plaen from RTL Infos’ social media team; economist Philippe Van Kerm from the Luxembourg Institute of Socio-Economic Research (LISER); and comedian Julien Strelzyk.
One of the main drivers is the dramatic surge in housing prices, which has sharply increased poverty risks.
According to the National Institute for Statistics and Economic Studies (STATEC), the rate of long-term poverty risk stood at 6.1% in 2024, but it climbs to 26.9% once fixed household expenses are deducted. As a result, many lower-income households have begun counting every euro at the end of the month, despite Luxembourg’s comparatively high wages. Severe poverty and social exclusion have also risen, mirroring global trends linked to widening inequality.
On Monday 8 December, the government presented its first national action plan to prevent and combat poverty, a commitment made in the coalition agreement. The plan includes a wide range of measures aimed at vulnerable households, children, and older people, structured around eight broad priorities. One major finding was that many support schemes already exist, but remain unknown or difficult to access.
Paul Galles stressed that, regardless of his career path – first as a priest and later active in social solidarity at Caritas before entering politics – he has always defended the same fundamental principles, particularly protecting society’s poorest members.
He argued that the 106 measures put forward in the new plan are capable of making a difference, saying that for the first time Luxembourg has a comprehensive, strategic framework to tackle poverty. He added that he had been calling for such a plan since 2020 and welcomed the fact that multiple ministries had finally joined forces to recognise it as a government priority.
One of the key steps, he said, will be harmonising the eligibility criteria for different types of support.
Alexandra Oxacelay highlighted how difficult it is for the people her organisation Stëmm vun der Strooss supports to access existing schemes. She pointed out that individuals living on the streets often find themselves effectively stripped of their rights because claiming them requires stability and capacity.
For someone living with severe psychological distress or addiction, completing administrative procedures becomes nearly impossible, Oxacelay said. What troubles her most, she said, is that society demands responsibilities from people who are no longer in a position to meet them.
Having joined the association in 1998, Oxacelay noted how much the situation has changed. When she started, she said, poverty was often embodied by a single stereotypical figure sitting at the station with a bottle of wine.
Today, homelessness and begging are widespread, something Luxembourg barely faced a few decades ago, she said. Oxacelay expressed outrage that such developments are happening in one of the richest countries in the world and insisted that this should never be considered acceptable.
Caroline de Plaen provided an overview of online solidarity initiatives that have sprung up in Luxembourg, noting that many rely on community-based mutual aid, particularly within expat groups.
Humorist Julien Strelzyk added a satirical take on the debate, joking about the notion of relative poverty in Luxembourg, especially when residents compare themselves with their French neighbours.
Economist and academic Philippe Van Kerm was also in the studio. Together with his colleague at LISER, Alessio Fusco, he has produced an in-depth study tracing poverty trends in Luxembourg since the 1980s, drawing on the UN Sustainable Development Goals (SDG). When it comes to extreme poverty, Luxembourg does not stand out negatively.
However, another SDG objective aims to halve poverty based on relative measures, Van Kerm explained. He added that Luxembourg’s poverty rate rises in this context because the country’s median income, the reference point for measuring relative poverty, is not only high, but among the fastest growing in Europe. This means that even if incomes rise, those whose earnings lag behind the median become statistically “poorer” relative to the broader population.
