Lenert spoke in parliament after the price of diesel in the country per litre for the first time with Europe grappling with the result of its dependency on Russian energy imports.
“Freedom and the defence of our values are something that has a price,” said Lenert, stepping in for prime minister Xavier Bettel (DP) who was attending EU crisis talks. “There is no one miracle solution that can singlehandedly solve the problem.”
In February, the government had announced a €75m package to help households shoulder the burden of rising petrol and gas prices. This includes a €200 to €400 energy subsidy for low-income households benefitting from a cost-of-living allowance as well as the state paying the bill for network costs with utility operators to relieve consumers.
A package of measures for businesses is still under discussion.
But Marc Goergen (Pirate Party) on Thursday said that there was no sign of these benefits being paid, with application forms missing from the MyGuichet.lu platform.
Abolish CO2 tax, ADR demands
Lawmakers across the board said the government must do more but several proposals were shot down. For example, the conservative ADR party said a CO2 tax should be abolished immediately.
“The state is enriching itself in the current situation,” said Fred Keup (ADR). Already in February, MPs had called for the extra revenue gained by the state because of the high prices to be funnelled back to households.
The Pirate Party and déi Lénk called for an energy subsidy of €100 or more, but the majority parties DP, LSAP and déi Greng sided with the government rejecting all proposals and instead saying the outcome of the tripartite talks should not be pre-empted.
This crisis mechanism brings together the government, trade unions and employer groups to jointly work on solutions. Bettel on Thursday called for tripartite talks as soon as possible and Lenert in parliament said that preparations were underway.
Price for peace
However, MPs also said Luxembourg must stand in solidarity with Ukraine. “This is a price we must be willing to pay,” said Max Hahn (DP), adding that Russia is committing war crimes against its neighbour and must be isolated. “We are more than determined to hit Russia where it hurts.”
More price rises could also be on the horizon, as wheat prices are exploding with Russia and Ukraine among the biggest exporters globally. “We must become more independent from non-democratic regimes when it comes to the procurement of energy and other basic goods,” said Cecile Hemmen (LSAP).
“We are in a situation of war, of war in Europe, war on our doorstep,” said François Benoy (déi Gréng), who said that the price increase should not trigger knee-jerk reactions but a package that is green, doable and can be financed.