Luxembourg government restores social dialogue

Luxembourg Prime Minister Luc Frieden told reporters on Monday evening that progress had been made between the government, trade unions and employers after eight hours of tense negotiations. "It is possible to go into the summer holidays in social peace," he said, hinting at a temporary reduction in tensions over three thorny issues: pension reform, shop opening hours and Sunday work.

Although there is no final agreement yet, the parties agreed that the tone of the talks has become noticeably more constructive. Frieden emphasised that the meeting was aimed at "building bridges" between conflicting interests. Foreign Minister Xavier Bettel, who postponed his visit to Brussels to participate in the dialogue, shared the government's optimism.

OGBL head Nora Back said there was a clear difference between the current negotiations and the previous tense meeting. Other union leaders, Patrick Dury of the LCGB and Romain Wolff of the CGFP, agreed with her. All three said that this time the social dialogue resembled a real process of convergence rather than a simple clash of interests.

On the business side, Michel Reckinger, president of the employers' association UEL, reiterated the desire for a "balanced deal", especially on pension reform. He added that Monday's talks were a continuation of last week's developments.

A cautious agreement has emerged that all participants - pensioners, the working population and employers - should contribute to the sustainability of the system. However, the new proposals will require in-depth financial analyses before a real step forward is possible.

The next round of talks is scheduled for 3 September. Until then, the parties have agreed not to disclose details in order to keep the process constructive. But the general mood is one of cautious optimism: the parties have not yet reached an agreement, but they are moving towards a consensus that could determine the country's future social policy.