Green party president Djuna Bernard told RTL the reduction in energy prices was not a social-selective measure and did not comply with the party’s wishes, but nonetheless it would be accepted as a compromise.
The government and the unions presented the outlines of the tripartite plan on Wednesday. Fuel and heating oil prices will be reduced by 7.5 cents per litre; just one indexation will take place this year; tax credits will be adjusted, rents will be frozen and businesses will receive further relief.
Bernard said a tripartite meeting would always result in a compromise, particularly in terms of energy prices. The Green MP said the unions had demanded it, but that the party viewed it as a temporary measure to be used in a volatile situation. The nature of these measures would therefore help to act as a temporary support tool.
The CSV party welcomed the announcement, with co-chief Gilles Roth saying the government needed to make an effort during these exceptional times. In contrast, déi Lénk co-spokesperson Gary Diderich said the measures announced would barely plaster over the issues in question.
Pirate Party MP Sven Clement took to Twitter for his reaction, where he said the measures would above all benefit those with the highest wages and cars.
Index
Roth said the CSV did not see an issue with moving the second indexation from August to 2023, saying that as the unions and companies had agreed on the matter, the party would not raise any objections.
However, déi Lénk’s Diderich said his party viewed it differently. “The fact that the indexation has been modulated in this manner shows that the unions have no real allies in government during these negotiations.”
He added that some companies would require further support lest they suffer from the indexation, as there were other businesses who tend to benefit from crisis conditions and would now be reaping the benefits from the delayed indexation.
Tax policy
Diderich added that a fairer tax policy was long overdue. But Roth said the government had not properly tackled this discussion over the past nine years. “This includes the assessment of low- and middle-earners’ taxes, which is very high right now”, he said. “These taxes have not been adjusted to inflation over the past five years or more, but we also need to apply a fairer policy to the top earners to ensure tax justice”.
Djuna Bernard said she doubted that fiscal justice would become a topic of discussion in the current debate on inflation, adding that she did not think that higher taxes would gain support from the government. “The financial situation of the state right now is such that we can offer the financial aids mentioned here, for the ecological transition and more socially targeted measures, thus allowing the state to assume its responsibilities”.
Bernard added that tax justice issues would likely be a topic for the next elections.
The ACL said it was satisfied with the tripartite measures and said they hoped their proposal to financially support companies who are most affected by rising energy prices would be adopted. The automobile club urged the authorities to implement the measures as early as possible in order to maintain the competitiveness of the Luxembourg economy.
Second indexation to be postponed until springtime 2023
