One in five Luxembourgers lives below the poverty line

Luxembourg, one of the most prosperous corners of Europe, has shocking statistics for 2023: the poverty rate here was 18.8 per cent, making it one of the highest on the continent. Almost one in five people in the country has an income below €2,518 per month, the poverty threshold for this highly developed economy.

Although Luxembourg leads the world in terms of purchasing power and GDP per capita, the reality for a large part of the population is different. The country's minimum pension, as the Chamber of Workers notes, also falls short of this threshold, and one in seven working people is classified as poor.

Luxembourg ranks 11th in Eurostat's poverty ranking among European countries, behind neighbours such as France (15.4%), Germany (14.4%) and Belgium (12.3%). It is only ahead of economically vulnerable countries such as Bulgaria and Romania. This raises the question: how does a country with one of the highest GDPs in the world allow such a high proportion of poor people to live in poverty?

Part of the problem is due to the housing crisis. Property prices here are so high that for many residents owning their own home remains an unattainable dream. Although the government is planning tax relief by 2025, these measures are unlikely to have a significant impact on the root causes of poverty, especially without addressing the housing issue.

The high level of poverty in Luxembourg is a reminder that even the richest countries are not immune to social imbalances. This situation emphasises the need for not only economic but also social reform to support vulnerable groups. Otherwise, the gap between theoretical wealth and reality will only widen.