“Simplifying procedures is not enough to solve problems,” remarked Taina Bofferding, president of the LSAP parliamentary group, during an interview on RTL Radio the day after Luc Frieden’s State of the Nation speech. Bofferding emphasised that this applies to both housing and poverty alleviation efforts.
In addressing poverty, Bofferding stressed the need for more comprehensive approaches beyond administrative changes. “It’s not enough to hand people pre-filled certificates,” she argued, advocating for structural reforms. The LSAP proposes a €100 increase in the minimum wage, made tax-free, as one such measure.
Additionally, Bofferding called for targeted support for single parents through increased family allowances to combat child poverty. The LSAP welcomed the announced tax cut for single parents starting 1 January, along with the government’s commitment to fundamental tax reform aiming for a single tax class by 2026. Bofferding underscored the importance of opposition involvement in these discussions.
Taina Bofferding finds it “a pity” and “not very fair” that Frieden has adopted plans from the previous government without saying so publicly. “While we are delighted to see projects initiated by us being continued,” Frieden “should be “honest” and say who initiated them.
Regarding housing, Bofferding stressed the need for accessible and affordable housing solutions. While acknowledging the importance of administrative simplification in housing initiatives, she noted that it is only the first step toward addressing housing challenges.
The feared austerity measures were not announced. However, according to Taina Bofferding, the speech was “clearly written in a conservative, even neo-liberal style.” She noted a clear inclination towards a lean state approach within the CSV-DP coalition. Bofferding highlighted concerns regarding the forthcoming adjustment of the tax scale, which will result in a loss of €300 million in tax revenue for the state. The LSAP advocates for comprehensive tax reform rather than isolated adjustments.
Regarding energy subsidies and price caps, Bofferding criticised what she described as “absolute chaos” in the government’s announcements. Individuals and businesses need planning certainty as to whether they will continue to receive subsidies and, if so, at what level, she stressed.
Bofferding pointed out that the LSAP had previously called for an extension of the current subsidy system, a request partially addressed by Frieden’s announcement of an extension until 1 October. According to Bofferding, “this chaos could have been avoided.”
