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Xavier Bettel: Up to five index tranches expected by the end of 2023

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Xavier BettelUp to five index tranches expected by end of 2023

LUXEMBOURG – Xavier Bettel, Prime Minister, said he wanted to find solutions to the sharp rise in prices, after meeting the social partners.

Xavier Bettel delivered “his personal feeling” before the start of negotiations.

SIP/Jean-Christophe Verhaegen

Faced with the current crisis, “it is imperative to find solutions”, hammered Wednesday Xavier Bettel, Prime Minister, after meeting the social partners. “Inflation weighs on citizens and businesses, they need support,” he said, after meeting with representatives of employers and then unions. This meeting precedes the tripartite, from Sunday.

The time was not yet for negotiations, but for the analysis of the facts, in order to have “the best possible overview of the situation”. However, “depending on the different scenarios, two, three or four salary indexation tranches could fall by the end of 2023, in addition to that of July 2022 which has been postponed to April 2023”, explained the head of government. The central scenario indeed evokes an inflation rate of 6.6% for this year, a very high rate which has consequences on a daily basis: “People see their energy bills explode, the amount of loans increase. It is not possible that people wonder if they will heat their homes this winter.

“The government is open to discussions”

Nora Back, OGBL

“The outlook for our economy in 12 or 18 months is gloomy,” echoed Michel Reckinger, president of the Union of Luxembourg Enterprises (UEL). According to him, “we must find solutions, which cannot go through the payment of five indexes in one year”. He believes that “if everyone is responsible, an agreement will be signed”. Nora Back, president of the OGBL, not a signatory to the agreement at the end of the previous tripartite, recognizes that the government was “considerate” and “open to discussions”. She is delighted with the data delivered by the government and hopes that the “disaster scenario” of high inflation will not materialize.

It is still too early to talk about concrete measures, pending negotiations. “An exceptional situation requires exceptional means”, first slipped Xavier Bettel, before recalling the budgetary framework: “We are committed not to exceed a debt of 30% of GDP, we must see what we can do with our means. To finance support for economic players, “all scenarios are on the table”, including a tax on the profits of energy companies: “it is being discussed at European level and we are not opposed to it”.