Socialists criticise Frieden

On Tuesday, 19 May 2026, Dan Kersch, the former Minister for Labour and the Civil Service representing the LSAP, strongly criticised the government’s approach during an interview on RTL Radio. The politician expressed particular bewilderment at the timing of the Prime Minister’s traditional address to the nation. In Kersch’s view, it makes no sense to organise it before the conclusion of the nationwide tripartite negotiations between the authorities, trade unions and business. The MP emphasised that, in this context, Luc Frieden would either say nothing of substance or pre-empt the outcome of the discussions, which would send an extremely negative signal for social dialogue in the country.

Against the backdrop of slowing economic growth, the socialist called for the immediate adoption of a package of anti-crisis measures, with a particular focus on the property sector. Kersch proposed a radical mechanism to support the population, under which the state would act as a guarantor for mortgage loans. In the event that families are no longer able to service their debts, state bodies would be obliged to purchase these properties, taking them onto their balance sheets, and then lease the same properties back to the former owners.

At the same time, the former minister is calling for an extension of the public sector’s right of first refusal on land purchases. Such a measure is necessary to prevent the market from being monopolised by large developers, who, in the current liquidity crisis, are actively buying up plots of land from small-scale developers facing financial difficulties. According to the LSAP representative, it is time for the state to become a strong and active economic player directly within the construction market.

On the subject of fiscal policy, Kersch has spoken out against across-the-board and indiscriminate cuts to corporation tax. Instead, he proposes a return to the progressive scale successfully implemented by the previous coalition, where rates ranged from 15% to 17% depending on profit levels. This would protect small businesses without creating unjustified tax breaks for banking institutions and corporations generating windfall profits.

At the same time, the politician touched on the subject of cutting budget expenditure. He believes it is advisable to optimise defence spending, emphasising that Luxembourg should not blindly and aimlessly build up its military capabilities simply because of demands from US President Donald Trump. Describing the political prospects of the incumbent prime minister, Kersch pointed to his extremely low approval ratings. He noted that Luc Frieden is already on the defensive, and if the tripartite talks break down, the only sensible course of action for him would be to resign voluntarily.

The former minister is deeply concerned about rising youth unemployment, which calls for the launch of large-scale public employment schemes. Commenting on the change of leadership at the Ministry of Labour, where Georges Mischo has been replaced by Marc Spautz, Kersch noted that the new minister is more sympathetic towards the trade unions, although his autonomy within the cabinet is severely limited by the conservative influence of the DP.

Towards the end of the discussion, the issue of the income disparity between the public and private sectors was raised. Kersch stated that the problem lay not in the excessive salaries of civil servants, but in the excessively low pay levels in private companies. Raising wages in the commercial sector is a fundamental prerequisite for maintaining social cohesion within Luxembourg society.