Politics: The economy minister, who recently announced his resignation, says the current indexation system threatens Luxembourg’s future.
Last autumn, Jeannot Krecké expressed frustration at the pace of reform, telling a paperJam Business Club roundtable that: “if I took myself very seriously and if I was honest with myself, I should resign.”
Wednesday night, he once again spoke forthrightly during a conference organised by paperJam Business Club--owned by the same group as Delano--calling for Luxembourg to urgently reach consensus on an economic reform package.
The event was a review of the government’s performance half-way through its six-year term. A panel discussion brought together representatives from the four main parties: Gilles Roth of the CSV, Claude Haagen of Krecké’s LSAP, François Bausch of Déi Gréng and Claude Meisch of the DP.
But Krecké’s closing speech stole the limelight. He said that the future of the Grand Duchy’s economy lies above all in providing services to international companies.
“We no longer will be able to use differences in tax and niches of sovereignty that we have taken advantage of,” he said. “It is through the management of companies that we will be able to play our cards rights and that will ensure our international future.”
“Let us be among the best!” the LSAP minister added.
Among the pressing reforms the economy minister said he would like to see was a revamp of the system of automatic indexation of wages with inflation. Krecké would like fuel removed from the consumer price index used to calculate salary increases, noting that otherwise wages are expected to rise 2.5% next year.
He said there is no other way to preserve the competitiveness of Luxembourg businesses, especially in view of the coming explosion in energy prices. “This will happen because of the shortage of energy resources. It has only been delayed by the current breakdown of growth.”
“Let us resolve to say: there will be no indexation, not in February, not in March, not in April!” he concluded.
Earlier this month, Krecké confirmed that he will leave his post at the start of February, citing personal reasons.