The statement comments on the decisions made during the recent tripartite, which include a postponing of this year’s second indexation until springtime 2023. FOKUS believes that this will come at the expense of the middle class, which currently finds itself in the position of earning too much to benefit from social measures, yet not enough to carry the burden of inflation.
FOKUS’ statement also draws attention to the fact that many middle-class people are still paying off debts or loans, which makes it increasingly difficult to get by. Furthermore, potential salary increases thanks to the indexation often end up being cancelled out as employees inadvertently climb to a higher tax level.
Frank Engel’s new party thus argues that the loss of spending capacity should be compensated equally for everyone. For instance, a household earning the minimum wage for untrained employees should get a 3% increase instead of 2.5% in the indexation.
The statement thus concludes that Luxembourg needs a socially staggered index, which prevents people from getting ten times as much as others, FOKUS says.
