Tax Justice
Luxembourg was mentioned 51 times in the latest annual report by the Tax Justice Network, which found countries’ authorities had lost out on $427b as a result of tax avoidance strategies. The countries which lost the most were the US, UK, Germany, France and Brazil while the biggest beneficiaries were the Cayman Islands, UK, Netherlands, Luxembourg and US. Paperjam.
BCD Travel to axe jobs
Travel firm BCD Travel plans to lay off a quarter of its staff in Luxembourg for economic reasons. The firm employs 40 people in the grand duchy, and has benefited from partial employment measures, according to union OGBL. The firm is preparing a social plan. The OGBL says its priority will be to limit the number of jobs lost.
Avoid contact
Luxembourg health minister Paulette Lenert urged the public to avoid all contacts, even for Christmas, in an interview for RTL on Saturday. The government is expected to announce new restrictions for Luxembourg at a press conference at 1pm on Monday. Over the past two days, Luxembourg recorded six deaths as a result of covid-19 and well over 1,000 new positive cases (Delano rolling coverage)
Min wage & Revis increase
On Friday, the government announced a 2.8% increase in the minimum wage to take effect on 1 January 2021, a decision that employers’ union the UEL said would destroy existing jobs and stifle the creation of new ones.
The government will offer a €500 grant per employee to employers to help cover this increase in sectors suffering as a result of the crisis. The Social Inclusion Income (Revis) will also be revised up 2.8% as of 1 January to maintain the purchasing power of citizens. Paperjam.
Covid-19 update
Global covid-19 infections reached 58.5m on Saturday while the death toll since January stood at 1.38m.
According to Bloomberg, the French government plans a three-phase easing of lockdown measures in December. Hong Kong and Singapore have abandoned a travel bubble scheme after a spike in cases, while China has reported sporadic cases in Tianjin, Shanghai and Inner Mongolia. The UK will today announce a massive increase in community testing and will reintroduce tiered restrictions for when lockdown ends on 2 December.
According to Politico, World Health Organization envoy David Nabarro said on Sunday that Europe risks a third wave of the virus if member states fail to maintain restrictions.
Mass vaccine roll-out
The US roll-out of coronavirus vaccines is expected to begin within three weeks, according to Bloomberg which has this tracker on which vaccines are cleared for use. Speaking at a G20 summit, German chancellor Angela Merkel expressed concern about vaccine access for poorer nations. During the virtual conference, European Commission president Ursula von der Leyen said more funding was needed to the plug the $4.5b gap in the ACT Accelerator, a mechanism to ensure access to tests, treatments and vaccines for all.
On Friday, Luxembourg prime minister Xavier Bettel (DP) announced 45,000 vaccine doses, enough to vaccinate 23,000 people, would arrive in the grand duchy by mid-December.
Meanwhile, the Guardian reports that State-sponsored hackers from China, Russia, Iran and North Korea are trying to seize sensitive information about mass production of drugs related to the pandemic.
Women on boards
The German government has agreed a historic mandatory boardroom 30% quota for women, in a move aimed at closing the gender gap. The quota will apply to listed companies with management boards of three or more members. Women currently make up 12.8% of the management boards of the 30 largest German companies listed on the Dap index. The Guardian.
Brexit discussions lagging
UK and EU negotiators enter what is expected to be their final week of discussions, with significant gaps remaining on issues such as fishing and competition rules. UK chancellor Rishi Sunak told the BBC that “no deal is better than a bad deal”, saying the pandemic posed a greater threat to the UK economy than Brexit. However, analysis by the London School of Economics and UK in a Changing Europe found the economic impact of a no-deal Brexit could be up to three times worse than the pandemic. The Guardian
Biden picks team
US president-elect Joe Biden is expected to announce his cabinet choice on Tuesday, despite president Donald Trump refusing to concede. A Biden source suggested veteran diplomat Antony Blinken could head the State Department, while last week he announced Janet Yellen, former Fed chair, for the role of treasury secretary. Bloomberg, Reuters, New York Times.
Sarkozy in the dock
The trial of former French president Nicolas Sarkozy for corruption and influence-peddling was adjourned on Monday. Sarkozy, who led France from 2007-2012, is accused of trying to bribe a magistrate for information on an investigation into his party finances. The case is linked to a long-running investigation into the politician’s suspected used of secret donations to fund his 2007 presidential campaign. BBC news.
Deepspot
The world’s deepest swimming pool opened in Poland on Saturday. At 45.5-metres-deep and with 8,000 cubic metres of water, Deepspot was designed as a training centre for divers. Euronews, BBC news.
Agenda
The Luxembourg government is expected to announce new restrictions at 1pm on Monday. Last week, prime minister said a new law would be voted on, closing bars and restaurants, indoor sporting and cultural activities (excluding museums and libraries) and a rule of two external guests in homes.
Also on the parliamentary agenda this week will be discussions on the public financing of hospitals, the threat of radical Islam, the Constitutional reform, the organisation of the electricity market, and the investment strategy of the sovereign intergenerational fund.
From Tuesday to Thursday, budding entrepreneurs can get support to develop an idea at the Mind & Market matchmaking sessions.
Luxembourg’s trade mission to China goes digital this week with a number of televised talks, case studies and workshops from Monday to Thursday.
On Wednesday, private equity practitioners will gather for the Luxembourg Private Equity and Venture Capital Association’s annual summit, which this year will be online.
And on Thursday, the British Chamber of Commerce will televise an interview with former UK chancellor of the exchequer Philip Hammond about the economic challenges of coronavirus and the end of the UK transition period.
Today’s breakfast briefing was written by Jess Bauldry