FRIDAY 26 APRIL
Luxembourg labour costs are the highest in the European Union. Although other countries have considerably increased their worker’s rates, the Grand Duchy is still the front-runner with an hourly rate of over 50 euros. Labour costs within Europe are far apart with Bulgaria at the bottom of the comparison with an hourly rate of a little more than 9 euros, Romania is just above that with wages of 11 euros per hour. An increase in industrialisation and the relocation of production to lower wage regions, however, are creating a rise in labour costs in Eastern European countries.
The energy prices in Luxembourg are among the lowest in the EU. According to a report by Eurostat, the Grand Duchy’s consumers had the lowest electricity and gas prices in the EU, despite inflation and the energy crisis. Household electricity prices dropped in Luxembourg and 12 other EU member states. The report states that the price decreases are a result of market dynamics but they were partially offset by reducing or removing consumer alleviation measures. Nonetheless, Luxembourg succeeded in keeping energy costs low for households as it has kept providing energy subsidies, thus making it the country with the second-lowest energy costs, when price differences are removed.
Luxembourg parliament has approved the state budget for 2024. All 25 MPs from the LSAP, Déi Gréng, Déi Lénk, Pirate Party and ADR voted against the bill, which includes a €1.9 billion deficit spending. But with a majority of 35 MPs in the Chamber of Deputies, the CSV-DP coalition had no problem passing the bill. The budget forecasts that state revenues will rise by 7.1% this year, but the government also plans to increase expenditure by 7.6%. Finance minister Gilles Roth said that the deficit equals 1.2% of GDP and is lower than the €3.6 billion gap foreseen during the coalition negotiations in October.
Members of Parliament have unanimously approved 48 infrastructure projects in the next few years. The projects range from road construction to the development of school buildings. The costs involved are estimated between 10 and 60 million euros. The vote is necessary to launch further studies on the planned constructions or renovations. According to rapporteur Corine Cahen, the projects are designed to improve the quality of life, shorten journeys and foresee notable improvements everywhere. Plans include building a new bridge over the Pétrusse from Hollerich towards the Esch motorway, a new LuxExpo building, new roundabouts and new or renovated schools.