The Chamber of Commerce cited five strategic pillars upon which the economic relaunch of Luxembourg should rest: an adapted structural framework, investments in the future, innovation, employment support, and an attractive tax system.
Representatives of the Chamber of Commerce presented the ideas this Wednesday morning. Their set of suggestions is hoped to bring to life an attractive framework within which companies can operate.
Regarding structural adjustments, general director Carlo Thelen suggested to turn the health care sector into a more diverse sector. In his words: "we therefore proposed to envision a medical valley."
In the context of investments in the future, the Chamber of Commerce suggested that Luxembourg should invest an addition €700 million, namely in "mobility, [...], energy, ICT, 5G and all these elements."
The Chamber of Commerce is also in favour of introducing an "innovation voucher" for companies. In other words, small companies can receive a €5,000 voucher for an innovation evaluation. This evaluation analysis the potential for innovation of each company.
Regarding employment, Carlo Thelen proposed that the government reduce social contributions paid by employers by 30% during the next six months. Only ailing companies would benefit from this tax relief measure.
Thelen similarly proposed to reduce the overall tax rate. The Chamber of Commerce also explained that the majority of the hospitality sector (between 55-60%) is pessimistic about the future. Revenue has declined by 72-90% and consumer confidence is dwindling.
