Luxembourg will not escape this new rule and will be expected to pay unemployment benefits for cross-border workers—but not just yet.
According to “Les Echos”, however, Luxembourg is the exception: this measure would only apply in 2026, compared to 2021 in the other countries.
This preferential treatment is linked to the fact that Luxembourg counts 45% of cross-border workers in its active population, according to Statec figures.
“Les Echos” reports that the Grand Duchy would then have to face “a big quantitative shock”. It currently issues unemployment benefits to 10,000 to 15,000 people, but under the new ruling would have to administer twice as much. The measure will concern people who have worked for at least six months without interruption in Luxembourg.
A progressive agreement?
Philippe Manenti, president of the Comité de défense et d'initiatives des frontaliers au Luxembourg (CDIFL), told the Luxemburger Wort in June 2018 that Luxembourg was paying France “compensation corresponding to three months of unemployment for each job seeker, i.e. an amount of €20 million per year.”
The measure was approved on Tuesday 19 March after an agreement between the European Parliament, European Commission and European Council.
“We reached a progressive agreement that focuses on the worker. In times of increased labour mobility, protecting social rights is of utmost importance. Member states will no longer be able to apply unilaterally national periods,” says rapporteur Guillaume Balas in a European Parliament press release.
As for associations representing unemployed people, they ultimately fear the “risks of unequal treatment” between unemployed people in the same country.