Luxembourg is doing well, and generally so are its citizens: the economy is growing steadily and the state budget is solid. However, more housing options need to be generated, struggling businesses need to be given a supportive hand, both the environmental tax and wealth tax should be increased, and pensions must be further curbed.
These are some of the many recommendations made by the OECD (Organisation for Economic Co-operation and Development) to the government. The state of economic development and cooperation within Luxembourg was published in a concluding document of 110 pages on Wednesday.
The emphasis of the document rests on Luxembourg's problematic housing issue. The numbers of 2016 show that, compared to citizens of other countries, loans for housing are a much larger part of peoples' total income in Luxembourg.
In Luxembourg: the tenants that squat in social housing. Furthermore, the report states that 1 out 5 tenants living in social housing are part of the financially better-off in the country.
To conclude, the OECD remarks that Luxembourg's results are rather negative. This is partly due to the fact that the number of social housing available is one of the lowest from all OECD countries.
