The agreement reached during the recent tripartite meeting will increase the purchasing power of all households in Luxembourg, poor and rich. This is especially important in the midst of a crisis. The poorer people have already experienced a severe decline in income due to energy price hikes. Measures from the tripartite agreement seek to cushion this blow by also lowering the cost of living for Luxembourgers.
The agreement includes:
- VAT reduction.
- Electricity price freeze.
- Limit on the growth of gas prices to 15% of the current price.
- Subsidies for fuel oil and fuel pellets.
As well as other economic initiatives. All this should help in the fight against inflation and economic recession, not only for the poorest families in the country, but for all its inhabitants as a whole.
According to Statec, the agreement can seriously reduce inflation – by 0.4% this year (6.2% with it versus 6.6% without it). And by 3.8% in 2023 (2.8% vs. 6.6%).