In an interview with RTL Radio, Carole Muller, president of the employers’ organisation Luxembourg Confederation and CEO of bakery chain Fischer, discussed the challenges facing businesses, from rising energy costs to labour pressures and the need for urgent government action.
Rising fuel prices are a clear problem across all sectors, she said, though the impact is most immediate in transport, adding that the effects are felt later in services and retail. Muller stressed that Luxembourg must now respond politically, noting that countries such as Germany and France have already introduced support measures for businesses.
While discussions are ongoing with the Ministry of the Economy, she urged swift action, warning that companies need support now, not in several months’ time.
Limited room to prepare
According to Muller, businesses have little ability to anticipate such price increases, stressing that while some raw materials can be stockpiled, many purchases are made on a long-term basis. Companies must therefore absorb rising costs from the outset, which reduces margins, she said.
Over time, however, they may have no choice but to pass these increases on to customers, Muller explained, warning that even firms engaged in the energy transition remain heavily dependent on fuel prices.
Fewer bankruptcies, but larger companies affected
While the number of bankruptcies has declined overall, falling from 242 in 2021 to 93 in 2025, the situation remains concerning.
Muller highlighted that larger companies are now increasingly affected. Between 2019 and 2021, around 1,000 jobs were lost annually due to bankruptcies, compared with at least 3,000 per year over the past two years, she said. “That is really the figure that should concern us most, and one we need to look at more closely than the number of bankruptcies itself.”
She explained that the construction sector has been particularly impacted, largely due to structural issues in the housing market rather than broader economic weakness. Building activity has slowed since the Covid crisis, and Muller warned that a future recovery could expose labour shortages. She called on policymakers to address these challenges.
Social dialogue needed
Muller, who will also lead bakery company Panelux from next year, warned of the impact of rising labour costs. A potential wage indexation in June combined with a 3.8% increase in the minimum wage would, in effect, be equivalent to adding 38 additional employees to payroll costs in Fischer, a company of around 1,000 staff, she explained.
Muller fears that many small businesses may struggle to cope and will be forced to raise prices to remain viable. For this reason, she stressed the importance of renewed social dialogue between employers, trade unions, and the government, whether through a tripartite arrangement or other formats.
Changing habits affect bakeries
The bakery sector has also been affected by shifting consumer habits. Since 2020, employment in the sector has fallen by 14%. Muller explained that this is partly due to customers now buying bread not only from bakeries but also from supermarkets and petrol stations.
While competition is healthy, Muller emphasised the importance of preserving small local businesses such as bakeries, butcher’s shops, and cafés in town centres. Ultimately, however, consumer behaviour plays a decisive role, she said.
Addressing the issue of recruitment, Muller said that it remained a challenge, particularly for specialised roles such as bakers, pastry chefs, and technical staff, even though positions in sales are easier to fill.
Sunday working hours
On another topic, Muller was also asked about the upcoming law on Sunday working, which is expected to come into force in June. She noted that a number of businesses are already affected and are currently assessing how to implement the new rules.
Muller explained that the situation differs depending on the size and type of company, with smaller businesses facing different challenges than larger ones.
She added that many companies are not starting from scratch, as numerous exemptions have already been in place, meaning some businesses have experience with Sunday work. Finally, she concluded that the focus now is on how the new framework will be implemented in practice.
