Luxembourg’s opposition criticises the government over its plan to tackle poverty

Luxembourg’s MPs have expressed strong dissatisfaction with the government’s current strategy regarding the minimum wage. The opposition’s main criticism centres on the fact that the cabinet is confining itself solely to the existing mechanism for automatic adjustments to payments, whilst refusing to carry out a substantive review. Georges Engel, representing the LSAP, claims that the authorities are manipulating statistical calculations to avoid a real increase in the burden on the budget. In his view, whilst funds are available for other sectors, the interests of low-income citizens are being ignored, and structural measures to combat poverty remain unimplemented.

The Kaitz index – an economic indicator showing the ratio of the statutory minimum wage to the median wage in the country – was at the heart of the discussion. Carole Hartmann of the Democratic Party (DP) explained that Luxembourg’s current figure stands at between 59.3% and 59.4%. This means that the country has virtually reached the 60% target set by European directives. Nevertheless, MPs from opposition parties regard these figures as a mere formality that does not reflect the actual state of affairs.

Marc Baum, a spokesperson for dei Lenk, highlighted the continuity of the policy: the government intends to stick to the system adopted back in 1973. This involves adjusting payments every two years in line with real wage growth. Baum emphasised that such a conservative approach completely ignores the problem of the ‘working poor’ — a category of citizens who are in full-time employment but are nonetheless at risk of poverty. Djuna Bernard of the dei Greng party expressed similar concerns, noting that the refusal to significantly increase the minimum wage has a negative impact on social cohesion.

Labour Minister Marc Spautz acknowledged that a final decision on this matter has not yet been reached. Although it was previously hoped that a consensus would be reached by Easter, it now seems unlikely that this deadline will be met. Spautz emphasised the need to strike a balance: the government must take the economic climate into account and maintain business competitiveness so that companies can adapt to potential increases in financial costs. The issue of adjusting payments is expected to be one of the key topics at the next cabinet meeting.