The subject of compensation for European Commission employees in Luxembourg, who are paid the same salary as their counterparts in Brussels but face a much higher cost of living, was again raised by Jean Asselborn on Monday.

The foreign affairs minister said he was proud that Luxembourg is the seat of many European institutions, but also reiterated his wish to see the presence of the European Commission in Luxembourg further consolidated. He referred to the agreement he made in 2015 with Hahn’s predecessor, commissioner for budget and human resources Kristalina Georgieva, which guarantees that around 12% of Commission staff should be retained in Luxembourg.  

Luxembourg has historically headquartered many European institutions including the European Court of Justice, the Court of Auditors, the European Investment Bank and the European Publications Office, and continues to attract new institutions such as the European Public Prosecutor's Office. But recruiting staff to the grand duchy has sometimes been a problem, and not just because of the cost of living. Just last year the Commission blocked the European Public Prosecutor's Office from using its budget, which had been specifically increased by a further €7.3m in December 2020 by the European Parliament and the European Council, to hire the specialised personnel it required.

The issue of the Commission in Luxembourg attracting and retaining staff has been long-standing as the cost of living, and especially rising house prices, in the grand duchy has increased. The Luxembourg government has been calling for a Luxembourg coefficient to increase wages for EU staff accordingly, but so far the Commission has failed to come up with a solution.