In its latest report, the Organisation for Economic Co-operation and Development acknowledged Luxembourg’s recovery from the Covid crisis, but highlighted the need for the Grand Duchy to deal with the consequences of the war in Ukraine. The OECD also criticised the index, territorial planning and the Grand Duchy’s pension system.
According to the report, the index system requires reform, as currently the highest incomes benefit from the index, and it risks accentuating inflation.
In order to control the housing problem and achieve climate objectives, Luxembourg requires improved territorial planning. In addition, it must also massively reduce individual traffic, reform the pension system in the long term, and better integrate young people within the job market.
Ministers Fayot, Backes and Turmes presented the report’s findings in a briefing at 3pm on Thursday.
