Tom Clarke and Duncan Roberts in the Ara City Radio studios  Delano/Ara City Radio

Tom Clarke and Duncan Roberts in the Ara City Radio studios  Delano/Ara City Radio

Ara City Radio’s Monday morning slot featured Tom Clarke and Duncan Roberts talking about reactions to the latest inflation forecasts and the postponement of yet another indexation of salaries.

Breakfast show presenter Tom Clarke welcomed digital editor-in-chief Duncan Roberts into the Ara City Radio studio for the regular Delano’s Top of the Week slot on Monday morning.

The pair discussed the cost-of-living crisis as soaring energy prices act as a catalyst for accelerating inflation. Indeed, the latest forecast from national statistics office Statec of inflation for 2022 is heading to the 6.6% mark, compared to 5.8% in its previous forecast in May. This led to prime minister Xavier Bettel calling for a new tripartite meeting of government, employers and union representatives in the early autumn.

The meeting will discuss how to best lessen the impact of inflation on households as they had already agreed that one automatic indexation of salaries should be deferred to 2023.

The alternative solution was to give everyone an energy tax credit on their salary, which kicked in this month. The credit, worth €84 for the lower salaries, is regressive--the argument being that it is the less well-off that will suffer most from energy cost increases (whereas they did not benefit most from the fuel discount of 7.5 cents per litre on petrol and diesel that will end after August in any case).

But two of the three main unions will be pushing for some sort of compensation, with the CGFP now joining the OGBL in saying that a deferment of a possible third indexation cannot be allowed. The CGFP argues that last tripartite deal, to which it signed up (unlike the OGBL) was based on figures that are no longer in line with current reality.

Employers, on the other hand, say that a universal indexation is dangerous and could lead to job losses as production costs rise. It also doesn’t target the poor and less well off, as high earners also get a substantial pay rise under the scheme.

Picks of the week

Duncan then provided listeners with three “what’s on” tips for the coming week including the continuation of the Congés Annulés season of concerts at Rotondes, the Cinémathèque’s season of summer-based films and the e-lake festival in Echternach next weekend.

Finally, Duncan’s track of the week was Lava Lamp Pisco by Australia’s Psychedelic Porn Crumpets off their new album Night Gnomes.

Tune in again to Ara City Radio ( FM) to hear the next episode of Delano’s Top of the Week on Monday 22 August around 8.30am on  or listen to the podcast on Delano.