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Due to new EU rules, Luxembourg may have to pay €200 million in unemployment benefits to cross-border workers

Luxembourg may have to pay €200 million annually in unemployment benefits to cross-border workers under new EU rules that make the last country of employment responsible for full payments.

Currently, Luxembourg only contributes part of the benefits during the first three months for cross-border workers residing in France who become unemployed. The relevant EU directive, however, stipulates that in the future, the member state where the employee was last employed will be required to pay the full unemployment benefits, provided the employee meets the conditions in effect in that country. This means Luxembourg will have to cover all unemployment benefits for cross-border workers coming from its three neighbouring countries.

Minister of Labour Marc Spautz does not believe the development can still be stopped. He first pointed out that without its cross-border workers, Luxembourg would never have achieved its current GDP or the level of benefits it provides. In Spautz’s view, the change is inevitable: "The only question that remains is how clear the vote will end up being." He noted that the vote does not need to be unanimous and that a simple majority is sufficient. Spautz expects there will be a majority in favour of the measure at the level of the European Commission, among individual EU governments, and finally in the European Parliament.

Also today

• A new deal will not be signed between the AMMD and the CNS before the end of May, the doctors' association announced on Tuesday.
• The municipality of Luxembourg City has approved the real estate project that will replace the former BGL BNP Paribas headquarters in Kirchberg
• The trial has started for two police officers from the former Luxembourg-Gare C3R station who are accused intentional bodily harm and abuse of authority in the course of their duties
• An agreement has been reached to end border checks between Germany and Luxembourg, officials announced today
• A 21-year-old man has pleaded guilty in an Austrian court over a jihadist plot to attack a Taylor Swift concert
• A saffron-robed Buddhist monk ended a gruelling barefoot walk across Sri Lanka on Tuesday with an impassioned appeal for world peace and kindness towards animals.

On air

Tuesday saw the return of the 'Algo-rhythm' and Tom treated us to tracks that we might like - if we liked Antony Szmierek - which I am sure we all do!

Figure of the day

One in three craft businesses failed to make a profit in 2024.

• The skilled crafts sector in Luxembourg remains stable, but pressure is mounting, according to Tom Wirion, Director of the Chamber of Skilled Trades and Crafts, who presented the 2025 report at a press conference on Tuesday.
• Although the sector appears stable, with nearly 10,000 businesses and over 105,000 employees, profitability is increasingly under pressure. Declining productivity, rising costs – particularly for energy, materials, and wages – and a digital transformation that remains insufficiently exploited are making it increasingly difficult for many businesses to operate profitably. The figures presented on Tuesday confirm this trend.

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