Gusty Graas, MP of the Democratic Party (DP) and chair of the parliamentary foreign affairs committee, addressed both domestic and international issues in an interview with RTL Radio, starting with the government’s recent decision to raise the minimum wage.
According to Graas, the government made the right decision in a difficult context.
He pointed out that Luxembourg is currently facing a challenging environment, both politically and economically. The consequences of the Iran war remain uncertain, economic growth last year stood at around 1%, and forecasts for this year are not particularly encouraging, he said.
Against this backdrop, Graas said the government had taken a realistic and balanced approach with the 3.8% increase in the minimum wage, describing it as a significant adjustment for the roughly 70,000 people concerned.
At the same time, Graas called on both employers and trade unions to remain realistic. A wage freeze would not have been justified, but nor would an 11% increase, he said.
Graas stressed the importance of respectful dialogue, warning that a breakdown in social dialogue would not be in Luxembourg’s interest. Social partners should return to the negotiating table, he said, adding that it was too early to speak of a tripartite agreement, although this could become necessary if the situation deteriorates further.
As chair of the parliamentary foreign affairs committee, Graas also addressed the broader geopolitical context. He described the situation surrounding the Iran war, which comes after the Covid crisis and the war in Ukraine, as extremely serious.
He warned of a potential wider escalation with consequences not only for global peace but also for the world economy. In his view, Iran had been prepared for US-Israeli strikes and was unlikely to back down. A possible ground offensive by the US should be avoided at all costs, he said.
Graas also criticised US President Donald Trump, accusing him of extorting NATO allies, which he described as unacceptable. He added that neither Trump nor Israeli PM Benjamin Netanyahu had informed partners of their plans, and warned against involving NATO or the EU in the conflict.
Turning to the EU, Graas said decision-making remained too slow, pointing to how Hungarian PM Viktor Orbán had recently blocked a major financial package for Ukraine.
He argued that the unanimity principle in EU foreign policy should be abolished and replaced with qualified majority voting, warning that failure to do so would weaken the EU’s authority on the global stage.
Regarding Hungary, Graas said he would not be unhappy if Péter Magyar were to defeat Orbán in the upcoming elections on 12 April.
As part of a programme from the Organisation for Security and Cooperation in Europe (OSCE), two Luxembourg MPs, namely Gilles Baum (DP) and Claude Haagen of the Luxembourg Socialist Workers’ Party (LSAP), will observe the vote. While Graas stopped short of accusing the Hungarian government of irregularities, he acknowledged that concerns remain and expressed hope that the elections would proceed in accordance with the rules.
Graas also recently returned from a parliamentary visit to Mongolia with four other MPs. He described the trip as highly interesting, noting that Luxembourg and Mongolia have maintained diplomatic relations for 50 years and development cooperation for 25 years.
The visit came at a time of political instability in Mongolia, with the Mongolian PM recently replaced and further cabinet changes expected. Despite this, Graas said the mission had been important, particularly in assessing a cooperation project focused on a hospital for heart patients, which underlined the value of continued collaboration.
