Gilles Baum

Social peace is ensured

If you look at our French neighbors these days, you quickly realize how important social peace is in a country. Our government with Prime Minister Xavier Bettel is absolutely aware of this and acts accordingly. They have made this clear with their anti-crisis measures in recent years.

And even now, when we are all suffering from the rise in prices – and especially from energy prices – the government has acted quickly and effectively.

The Prime Minister convened a tripartite meeting in which a good agreement was negotiated with the social partners.

The goal was clear from the beginning on: to support the people, the companies and the independents and help them with pragmatic measures… among other things through tax relief up to the middle class, as the DP has always supported them.

When depositing the budget at the end of last year, Finance Minister Yuriko Backes linked such relief to the country’s financial situation. However, in the meantime the economic situation has improved: growth is increasing, and Luxembourg has the lowest inflation of Europe.

It has therefore been possible to make a partial adjustment of the tax scale: the purchasing power of citizens will be substantially strengthened and the middle class will be relieved.

Thus, the cap on the energy price has been extended until the end of the next year.

Each index tranche is paid out 1 to 1 to people.

The tax table will be adjusted by 2.5 index installments from 2024.

Until then, a new tax credit applies retroactively to January 1 of the current year at the same amount.

The cheap act is increased from 20,000 to 30,000 euros. And the ceiling of deductible debt interest in housing will rise from 2,000 to 3,000 euros – retroactively to January 1 of the year.

What does this actually mean? I’ll give you an example to illustrate its impact.

For a married couple with 2 children and a cumulative income of 9,500 gross per month, who pays back a housing loan, this is 2,460 euros less in taxes this year.

The following year, this number will rise again. The household now wins 2,580 euros.

As a center party, the DP supports the agreement of March 7. It is the third agreement that the government has reached with the support of the DP within 12 months. This proves that social dialogue is working in this country and social peace is secured. The DP, however, continues to make a careful policy in order to not burden the next generations with irresponsible expenses.



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