According to the latest projections from the International Monetary Fund (IMF), Luxembourg’s public debt is expected to climb from 26.5% of GDP in 2025 to 39% by 2031. If these forecasts prove accurate, Luxembourg would no longer meet the Maastricht criteria from 2029 onwards, as the government deficit would exceed the 3% of GDP threshold set by the European Union.
The main driver behind this anticipated rise is believed to be the cost of the government’s tax reform. The issue was raised by Green Party MP Sam Tanson, who submitted an urgent parliamentary question to Minister of Finance Gilles Roth. Tanson’s inquiry asks whether the government shares the IMF’s assessment, whether the costs of the tax reform may have been underestimated, and if current fiscal policy should be revised in light of these projections.
