The Court of Auditors is in favour of reforming the concept of the tripartite. Created at the end of the 1970s in order to take measures in the event of an economic crisis, the tripartite should now become a quadripartite, according to the court’s proposals.
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The Court of Auditors also demands more sustainable financial planning by the government. Representatives have criticised political leaders for their current approach that is considered to be short-sighted.
In light of the pandemic, the energy crisis exacerbated by the conflict in Ukraine, and the ever-growing pressure of the climate crisis, the Court is asking political leaders to further reflect on the evolution of public debt.
Too much debt risks destabilising public finances and weakening the government’s ability to negotiate, even in the medium term. The Court adds that any debts should be oriented towards a social, digital and energy transition of the Grand Duchy’s economy and society.
For this reason, it believes that climate change representatives should be included in any future negotiations, upgrading the meetings from a tripartite to a quadripartite.
As an initial reaction, LSAP Minister of Finance, Franz Fayot, said he was sceptical about the Court’s recommendations.
The Court of Auditors also examined the revenues upon which the state budget is based. Due to current political, economic and health uncertainties, the Court is of the opinion that the budget forecasts indicating government revenue are no longer up to date. It was therefore unable to rule whether these figures are plausible or not.
For this reason, the Court recommends the creation of a forecasting committee, made up of representatives from the Ministry of Finance, the Administration of Direct Contributions, STATEC, the General Inspectorate of Finance, Social Security, the Treasury and the Higher Council for Sustainable Development.
An independent committee such as this could deliver more precise forecasts for state revenue, according to the Court of Auditors.
