What’s the big deal?

The reserves of Luxembourg’s national health insurer are shrinking. In 2023, the CNS should clock up a deficit of more than €41m, health minister (LSAP) said this week. There are currently around €862m left in the reserves, which should shrink to roughly €820m by the end of this year.

Already last year, there was a deficit of €41.6m. “We must take the situation seriously,” Lenert said of the downward trend. Efficiency gains, for example through digitalisation, are one way forward, with a working group developing recommendations for the next government, which will take office in the autumn.

Contributions of €3.91bn compare to expenses of €3.951bn. “The trend towards a deficit is being confirmed,” Lenert said. The state is under a legal obligation to make sure that reserves of 10% of expenses are in the bank. This amount is currently at 19.1%, but CNS officials warned that at the current pace the extra buffer would melt away in the next few years.

Elections

·      Luxembourg heads to the polls on Sunday to vote the next round of mayors and town councillors for the country’s 102 communes in this year’s local elections. One of the most closely watched races will be in the capital, where Lydie Polfer is in the running to continue her reign after having held the office for the last 10 consecutive years following a 17-year mandate between 1982 and 1999.

·      The party Fokus, which is making its debut at this year’s local elections, said it would file a complaint against racist slogans smeared on some of their campaign posters. In Sanem, around a third of Fokus’ candidates are foreigners. The unknown perpetrator(s) scribbled on posters in the commune that foreigners should get lost.

The incident follows a complaint by déi Gréng in Echternach, where a dead cat was left at the foot of an elections banner, with candidates slandered as fascists and terrorists on social media.

From parliament

·      The government is still working on a national anti-Semitism plan, promised in 2021 as part of a landmark restitution agreement. The Research and Information on Anti-Semitism in Luxembourg (Rial) group last year recorded 76 incidents of anti-Semitism, although the number of unreported incidents could be much higher. Four people were sentenced in 2021 and 2022 for anti-Semitic remarks in the context of vaccination against covid-19. The action plan should be presented before the summer break, ministers said in answer to a parliamentary question.

·      Luxembourg has more than 966,500 vaccine doses in stock, worth around €20m, Lenert said in response to a question by lawmakers. “The stock is large enough to supply the entire population of Luxembourg with a vaccine,” she said, in the event of a new wave of infections or as immunity from previous rounds of vaccinations wanes.

·      Under plans to be confirmed by parliament, Luxembourg’s grand duke is set to receive an annual income of €523,000 from the state, with the crown prince taking home €220,000. The money comes tax free, with the grand duke’s payment newly regulated under a constitutional reform that aimed for greater transparency and separation between public and private fortunes.  

Number of the week

Brussels calling

·      Under EU rules up until now staff couldn’t work more than 25% of their time outside the country of their office without losing access to their social security affiliation. This is now changing, with the EU raising this amount to 49% if countries on both sides of the border agree.

Luxembourg has with Belgium and Germany, with France still considering its options. The social security issue is separate from dual non-taxation agreements, which limit the number of teleworking days to 34 for Belgium and France, and 19 for Germany.

·      The effectiveness of EU justice systems is improving, a review by the European Commission this week said. Luxembourg ranked among the ten slowest countries in resolving civil, commercial, administrative and other cases, the survey found, with around 150 days of proceedings. It had the lowest number of pending cases per capita.

International relations

·      Luxembourg is switching the format of its residency permits. The old paper document with an attached photo will cease to be valid on 3 August. Foreign nationals holding these documents have been advised to get an updated version.

·      The foreign ministers of the Benelux countries, including (LSAP), travelled to Ghana and Kenya this week, meeting with their local ambassadors and national representatives. On the agenda were talks on EU relations with the continent, Benelux cooperation in the region, the security situation but also the war in Ukraine and its global impact.

In other news

·      The finance inspectorate has filed a complaint with the public prosecutor’s office against the Luxembourg Science Center over irregularities in its finances. An investigation has been ongoing after claims that the centre paid inflated prices to the company GGM11 for the interactive science stations in its exhibit. The company is headed by Nicolas Didier, who is also the centre’s director.

The government previously cancelled an agreement under which it paid €21m since 2017 in subsidies, which it is now in the process of re-negotiating to have greater oversight.

·      Luxembourg’s justice council, introduced under a constitutional reform to enshrine the independence of the judiciary, is taking shape. The nine members (and nine substitutes) were nominated by different branches of the judiciary, such as the courts and prosecutor’s offices, but also the Chamber of Deputies. The council will act as a watchdog to oversee the justice system and ensure the separation of powers.