The social sector in Luxembourg is seeking to draw lessons from the Caritas scandal by strengthening prevention, improving communication, and forging closer ties with political decision-makers, according to the Federation of Social Sector Actors in Luxembourg (FEDAS).
The remarks come as FEDAS hosts the third edition of its Social Day on Tuesday at the Coque sporting centre in Luxembourg City. While the official theme of this year’s event is the opportunities and risks of artificial intelligence, the gathering also serves as a platform to address the broader developments and challenges currently facing the sector.
FEDAS, created in 2018 following a merger, represents over 200 organisations employing more than 15,000 people. Its members operate across a diverse range of fields, including child and adolescent support, family counselling, housing, disability services, and employment initiatives.
While the work of these organisations often remains out of the public eye, the sector was thrust into the spotlight two years ago following the fraud scandal that severely impacted the charity Caritas.
Reflecting on the affair’s aftermath, Carlos Breda, one of FEDAS’s two vice-presidents, noted that it highlighted the vulnerability of social organisations, particularly concerning online security. However, he also acknowledged that the case exposed deeper structural weaknesses within the sector that must be addressed systematically.
To this end, FEDAS intends to adopt a more proactive role, with a renewed focus on prevention and communication. A key pillar of this strategy involves closer collaboration with political leaders. Against this backdrop, the federation has signed a Memorandum of Understanding with seven ministries to formalise cooperation.
The recent reform of the law on non-profit organisations was also designed to increase transparency. While FEDAS acknowledges the necessity of this legislative change, it holds a more nuanced view of its potential impact.
Breda questioned whether the reform would be sufficient on its own, arguing that more work is needed regarding agreements, operational frameworks, and the internal governance of organisations. He stressed the need to strengthen what FEDAS terms “structured dialogue” with public authorities.
According to Breda, this is precisely the kind of ongoing discussion the federation aims to have with the ministries in the months and years following the signing of the memorandum.
The collapse of Caritas also led to the discontinuation of the social almanac, a publication that provided an overview of Luxembourg’s social and economic landscape. In its place, FEDAS announced the launch of its own social advocacy service at the end of 2024.
According to Breda, the service is now fully operational and has already produced a range of opinions and articles. He noted that, despite being a newly assembled team of less than a year, the service is highly active and is working diligently to fulfil its role as a social advocate at the national level.
Housing has emerged as a major priority for the federation. Breda stressed that Luxembourg is currently facing a housing crisis. When asked about the specific changes needed, he called for the creation of a framework that ensures vulnerable individuals – including young people and families – can live in decent conditions.
