Luc Frieden: "There are more important topics than pension reform"

In an interview with Luxembourg Wort, Luxembourg Prime Minister Luc Frieden answered tough questions on pension reform, complex negotiations with trade unions, international security and the country's foreign policy.

Despite the lack of agreement after three rounds of social negotiations, the government decided to move forward. According to Frieden, the positions of employers and trade unions were opposed - some insisted on the cancellation of provisions of the 2012 law, while others rejected any increase in contributions.

Frieden insists: "We listened, we reconsidered our positions, we offered a compromise. This is the result of social dialogue. He added that the experience of past reforms shows that there is almost never a consensus on pensions.

Although major changes have been postponed until 2030, the prime minister insists: "We are still making progress." At the same time, he emphasises that in the context of an unstable economy and demographic shifts, reform is a necessity, especially for the sake of future generations. Young people, he believes, should be explained: the reform is not against them, but for their sake.

Frieden rejects the criticism and believes that disagreements are part of democracy. The format of tripartism (government-employers-unions) was not used because, according to the prime minister, it is a crisis instrument, and pension reform is a strategic, long-term issue.

Speaking of the economy, Frieden said: in the first two years of the new government, Luxembourg has returned to growth. The next step is to reduce corporate tax in the middle of the legislature to support competitiveness. Also mentioned are priorities: renewable energy, expansion of industrial zones and smart regulation.

In the health sector, where financial difficulties are also looming, the prime minister has not yet revealed details, but welcomes the ongoing dialogues between ministries and social partners.

Frieden does not believe that the pension issue will be the main topic in the next election. In his opinion, the agenda will be dominated by the economy, energy, health care and housing affordability.