Prime minister Xavier Bettel (DP) on he wants to convene so-called tripartite talks to discuss the rising energy prices, their impact on Luxembourg households and businesses, and potential measures to alleviate the burden of extra spending.
Radio 100,7 reports that these talks have now been scheduled for Tuesday 22 March.
Trade unions already in December had wanted to discuss household purchasing power in a tripartite meeting called to discuss the ongoing coronavirus pandemic. Already at the end of last year, prices on numerous goods were rising amid supply chain bottlenecks.
But the government had , with unions slamming the talks as .
To help households shoulder the burden of rising energy prices, the government at the end of February announced a , including an increase of the cost-of-living benefit for low-income households, adding an energy bonus and covering network costs for operators to lower customer bills.
Energy minister Claude Turmes this week acknowledged that there are delays in implementing these measures.
Indexation
A support package for businesses remains under discussion and the government said it would not announce any further proposals until after the tripartite talks.
High consumer prices are likely to trigger the indexation of wages before mid-year, an automatic mechanism that raises salaries by 2.5% to adjust them to inflation. Business unions have long complained that the mechanism is a burden for businesses, which must now face higher prices for energy and raw materials as well as larger payrolls.
They have suggested that high-income earners should be excluded to throttle costs but ensure that people who need it still receive the cash boost.
National statistics office Statec had previously estimated that could be triggered this year if prices continue climbing. Several industry groups have already suggested that only one index should be paid this year. The last increase dates to October last year.
Economy minister Franz Fayot (LSAP) is set to miss Tuesday’s talks as he is scheduled to travel abroad.