An interpellation in the Chamber of Deputies, initiated by MP Liz Braz of the Luxembourg Socialist Workers’ Party (LSAP) on Tuesday, delved into the need for financial literacy education in Luxembourg, a demand that resonated strongly with almost every party. A study on financial literacy, published in 2023 by the Organisation for Economic Cooperation and Development (OECD), served as the basis of the interpellation, and with sobering results across numerous countries and age groups, Braz asserted that there is a real need to educate youth on financial literacy.
Stating that financial knowledge is not merely technical knowledge but an “instrument of power” almost exclusively in the hands of an elite few, Braz noted that it is high time that this knowledge is made more accessible, labelling it a key skill rather than a “privilege”.
MP André Bauler of the Democratic Party (DP) also pleaded for a better understanding of finance among denizens, emphasising the importance of financial literacy to avoid excessive indebtedness due to lack of knowledge of certain schemes such as ‘buy now, pay later’ options.
While MP David Wagner of The Left (Déi Lénk) recognised the value of teaching financial literacy in school concerning the pension and tax system, he cautioned that financial literacy education should remain critical and avoid becoming “lobby work” for the financial sector in Luxembourg. He accordingly proposed that the Chamber of Employees (CSL) be involved in the programme.
Education Minister Claude Meisch and Finance Minister Gilles Roth shared the view that Luxembourg needs a new national strategy for financial literacy education. Roth committed to adapting the current finance strategy – which dates back to 2015 – to expand on current developments such as the fintech domain, AI, cryptocurrency assets, impact finance, cyber security, and financial scams.
All these recent developments require “new answers”, Roth concluded. He further emphasised the importance of the independent Financial Sector Supervisory Commission (CSSF), stressing that it should play a bigger role in this domain.
In response to a question by Braz, Roth also made clear that he would lay the groundwork for a credit register similar to the Belgian Central Credit Register. However, Roth delegated the creation of such a credit register to a future government given the absence of such a measure in the current coalition agreement.
