What are the expectations of Luxembourg businesses for the 2023 legislative elections? The Chamber of Commerce gave them the floor. (Photo: Michel ZAVAGNO/BLITZ Agency)

What are the expectations of Luxembourg businesses for the 2023 legislative elections? The Chamber of Commerce gave them the floor. (Photo: Michel ZAVAGNO/BLITZ Agency)

Inflation, labour flexibility, workforce shortages and the energy transition are among the challenges that Luxembourg companies expect politicians to address in the next legislative period. The Chamber of Commerce reveals their expectations in its Economy Barometer.

611 Luxembourg companies were questioned by the Chamber of Commerce between 12 and 30 September as part of the Economy Barometer. Firstly, , businesses were asked how they felt about the economic situation. Their confidence is "at its lowest since the end of 2020". The score is 52.3 points, down 2.9 points in half a year. 20% of companies have seen their activity contract over the last six months, whereas only 15% had predicted this.

"Often their expectations are more negative than what is actually happening. Here, it's the other way around," says , CEO of the Chamber of Commerce. 21% still expect a decline in the next six months, 57% expect stability. Similarly, 17% expect investments to decrease. "This worries us. Companies have to prepare for the future and cannot.

It is a complicated situation, to which politicians will have to respond. The chamber therefore anticipated the 2023 elections by asking, in a second section, what companies expect from the next government.

Controlling energy costs: a major concern

At the top of their list of concerns is the control of energy costs (59%). This is followed by simplifying administrative procedures (44%) and making the labour market more flexible (38%). "If prices are multiplied by five or ten, it is not manageable", illustrates , CEO of United caps.

When asked "what should be the key word of the next government?", the companies answer inflation control, cost reduction and the fight against climate change.

Government expected to address housing and transport

On what contributes effectively to Luxembourg's competitiveness, the social security and pension system scores 3.5/5. "It is its current capacities that are being judged," the Chamber of Commerce relativises, aware of the challenges for the future. On the other hand, the accessibility of housing (1.73/5), the availability of skilled workers (2.05/5) and commercial spaces or zones of economic activity (2.25/5) are of concern.

"We're not just talking about skilled workers, but also unskilled workers," adds owner of Cocottes, who has witnessed a rise in absenteeism rates. "Employees tell me that four years ago they would take 45 minutes to come to work and today it takes them 1.5 hours". She expects concrete proposals on housing and transport.

Profitability, skills and energy costs

Entrepreneurs agree (3.7/5) that we must move towards resource independence at European level.

Profitability (87%), skills (86%) and energy costs (79%) are the main strategic issues for companies.

Among their wishes are flexible working hours and teleworking for cross-border workers, simplification of administrative procedures, aid to maintain employment and investment, easier access to work for the entire workforce, tax relief for small businesses and control of energy costs. "We have to find a solution, otherwise, in a short time, there will be no more restaurants in Luxembourg," warns Jauquet.

"When you make laws, call us," added , president of the Luxembourg Business Confederation (CLC). How will politicians respond? The Chamber of Commerce invited representatives of all seven parties. Six of them were present at the debate that followed the presentation of the barometer results. 

This story was first published in French on . It has been translated and edited for Delano.