Luxembourg offers remote work, France demands money

After a tense bilateral meeting between France and Luxembourg (CIG France-Luxembourg), where the issue of telecommuting was once again at the centre of attention, it became clear that there is still no compromise between the countries. The issue is particularly relevant for the tens of thousands of French cross-border workers who cross the Luxembourg border every day. Despite the disappointment that the lack of concrete agreements has caused, negotiations are continuing - and with concrete figures.

As confirmed by Finance Minister Gilles Roth, Luxembourg is ready to increase the allowable threshold for remote work for French border workers to 25% of working hours, equivalent to 1.25 days a week or about 58 working days a year. The tax threshold is now limited to 34 days per year - for French, Germans and Belgians.

However, France has proposed a more ambitious target of 40 per cent. Luxembourg is not yet in favour of this approach, and the reason is financial.

France is demanding financial compensation for the loss of part of its taxes, because more remote work means fewer days of tax paid in Luxembourg. But Gilles Roth bluntly stated that the Grand Duchy government is against annual automatic compensations and proposes an alternative: the joint development of cross-border projects, from transport infrastructure to hospitals and educational institutions. These projects should be equal and agreed by both sides, and this is what Luxembourg is willing to allocate funds for.

So far, the negotiations are at an impasse: there is neither an approved mechanism nor specific deadlines. France is not ready to give up cash payments, and Luxembourg is not willing to pay for something that could be invested in mutual infrastructure.