The Union of Luxembourg Enterprises (UEL) has welcomed the tripartite agreement reached this week, with its president Michel Reckinger describing it as “good for people and businesses” and saying it provides much-needed certainty during a difficult economic period.
The agreement, reached between the government and social partners on Thursday, includes measures to curb energy costs, tax relief for households, and steps to accelerate the energy transition. The package is estimated to cost €450 million.
Speaking to RTL, Reckinger said the deal would help both companies and residents navigate the coming months: “We are very satisfied with it because it helps us have visibility over the next few months, both for companies and for people, in what remains a very difficult situation.”
Reckinger said the rapid conclusion of negotiations reflected the urgency created by geopolitical tensions and economic uncertainty.
“If we don’t react quickly, the next few months will be very difficult for many businesses”, he said. He also praised the government’s preparation for the talks, saying ministries and the national statistics office, STATEC, had provided “very solid dossiers” that allowed discussions to progress efficiently.
Housing crisis must be addressed
The UEL president also pointed to an improvement in relations between employers and trade unions, describing the atmosphere during the negotiations as constructive and “solution-oriented”.
“The tone was responsible and respectful”, he said. “When people speak respectfully and responsibly, they can move forward.”
Looking ahead, Reckinger identified housing as one of Luxembourg’s most pressing challenges, despite it not formally falling under the remit of the tripartite process. He noted that the government currently invests around €600 million annually in affordable housing, but argued that significantly greater investment would be needed to meet demand.
“We need 4,000 homes per year. That represents around €3 billion”, he said. “The government cannot do that alone. We need investors to regain confidence and invest in housing again.”
Reckinger warned that the slowdown in residential construction was also affecting employment, noting that around 5,000 jobs had already been lost in the construction sector in recent years.
“I think it is cheaper to act now on housing than to pay for unemployment or bankruptcies later”, he said.
Aid not wanted, but needed
On labour market issues, Reckinger acknowledged that employers and unions would continue to disagree on certain topics but expressed confidence that discussions could remain constructive within the Permanent Committee for Labour and Employment (CPTE).
Addressing criticism that businesses should become more resilient during periods of crisis, Reckinger said companies generally preferred to stand on their own feet and did not want to depend on public support.
“We are the first to say that we do not want to be asking for aid”, he said. “A company must, in principle, be able to survive by itself.”
However, he argued that the current circumstances justified temporary government intervention.
“We are in an exceptional situation, which is why we held an exceptional tripartite meeting”, Reckinger said. “The support must be limited in time. Once the crisis is over, these measures must be scaled back and companies must again be able to manage on their own.”
