TRIPARTITE TALKS – Prime Minister Luc Frieden has expressed satisfaction following "constructive" bilateral meetings to prepare for June’s tripartite talks. Discussions focused on rising energy costs and inflation. While unions are demanding focus on housing and healthcare, employers are prioritising competitiveness and energy issues. The index is due to be triggered this month, with wages and pensions set to rise by 2.5% in June.
ECONOMIC FORECAST – The National Institute of Statistics and Economic Studies (STATEC) is reporting that Luxembourg households face rising energy and food price pressures until at least the third quarter of 2026, driven by conflict in the Middle East. Inflation, projected between 2.3% and 4%, will trigger at least two wage indexations, with the first expected this June. However, forecasts remain fragile due to ongoing geopolitical uncertainties.
POLICE VIOLENCE TRIAL – Lawyers for four suspended police officers on trial for violence in Luxembourg City have called for their acquittal, saying it remains unclear what exactly happened at the former Gare police station in May 2023. The prosecution has called for prison sentences of up to six years. In their closing statements, the defendants expressed regret, with the lead officer saying he never intended to harm anyone. A verdict is expected on the 25 June.
HANTAVIRUS OUTBREAK – Luxembourg Air Rescue has begun repatriating two hantavirus patients from a Dutch cruise ship near Cape Verde. An LAR aircraft took off from Praia Airport on Wednesday, after hours of confusion on the ground involving Dutch, Cape Verdean, and Spanish authorities. A third patient is being flown separately to Amsterdam.
Spanish authorities are meanwhile assessing whether to allow the cruise ship to dock in the Canary Islands.
IRAN WAR – The White House is reportedly “close to an agreement” with Iran. President Trump has also warned that bombing would resume, and at greater intensity, if no deal is reached. Iran says a US proposal remains under review. Meanwhile, France has deployed its aircraft carrier the Charles de Gaulle towards the southern Red Sea, signalling readiness to help secure the Strait of Hormuz if needed.
Israel has struck a suburb of Beirut, killing a Hezbollah commander, despite a ceasefire technically being in place. The north of Israel is now on high alert amid fears of retaliation.
UKRAINE WAR – Ukrainian President Zelensky has accused Russia of ignoring the ceasefire, saying Moscow responded to a proposed pause in fighting with further attacks. He also dismissed any truce timed around Russia's Victory Day parade on 9 May as meaningless.
UK LOCAL ELECTIONS – Millions of people across England, Scotland and Wales are set to vote in the largest set of polls since the general election in 2024. Voters in Scotland and Wales will choose who should run their national parliaments, while seats on dozens of councils and mayors are up for election in England. The polls will be the biggest test of public opinion since Labour won the general election two years ago.
FOOTBALL – Paris St Germain are through to the Champions League final after holding Bayern to a 1-1 draw in Munich last night. PSG will now play Arsenal in Budapest on 30 May.
CYCLING – Several cyclists have fallen ill during a race in Belgium, with contamination from cow pats along the route believed to be the cause. Around half the peloton, including Luxembourg rider Mathieu Kockelmann, reported symptoms including stomach pain and fever, and three were briefly hospitalised. A bacterial infection has since been confirmed.
We're starting the day under some heavy cloud cover and a spot of rain can't be entirely ruled out this morning. The good news is, skies should gradually begin to clear as the day progresses and we might even have some sunny spells in the afternoon. Temperatures will range from a cool 7 to 9°C this morning, climbing to a maximum of 16°C this afternoon.
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