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OGBL criticised the plan to tackle poverty

Last time updated
17.12.25
Risk of poverty in Luxembourg

Emil Kalibradov, Unsplash

Two years ago, Prime Minister Luc Frieden loudly proclaimed that his government's main task would be to fight poverty. However, the long-awaited plan, finally presented on 8 December by ministers Max Hahn, Martine Deprez and Claude Meisch, was completely overshadowed by another event on the same day: the resignation of minister Georges Mischo - news that resonated much more in the media field. Especially against the backdrop of a fresh ranking of politicians, where Frieden lost popularity at record speed.

In terms of communication, the government lost: a key social issue was displaced by news of a personnel crisis. But even worse, the plan is more sceptical than optimistic in terms of content.

Luxembourg remains one of the richest countries in Europe, but the poverty rate - especially among working people - is the highest in the EU. This applies to families, single parents, young people and children. Even the European Commission has expressed concern about Luxembourg's social indicators. Against this background, the OGBL has long demanded a clear and ambitious plan. However, the resulting 106 measures look more like an attempt to cover the vastness than a realistic package of actions.

Among the "improvements" is an increase in child benefits, but only from 2027. Most of the measures relate to simplifying bureaucracy and improving the processes of receiving aid, but have little impact on the real incomes of the poor.

Key steps insisted upon by OGBL are missing:

  • Raising the minimum wage by at least 10 per cent;
  • Rent Ceiling;
  • Reforming the minimum pension so that it actually allows you to survive without seeking social assistance.

The text criticises in particular the government's decision not to increase minimum pensions, but instead to replace them with additional social benefits on application. "After a lifetime of work, asking for help is unacceptable," the union emphasises.

Separately it raises the problem of young people and new forms of precarious employment: freelancing, "flexible" employment, short contracts. The union demands reform of bankruptcy legislation, improvement of unemployment conditions, creation of sustainable career trajectories and protection of workers' rights in a changing labour market.

One only looks with hope towards the new Labour Minister Marc Spautz, who, according to the OGBL, could "breathe new wind into the Labour Code".

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Last time updated
17.12.25

We took photos from these sources: Emil Kalibradov, Unsplash

Authors: Alex Mort