Luxembourg’s political institutions have started to come out and share their perspectives on the upcoming budget debates in the Chamber of Deputies, with the Union of Cities and Municipalities (Syvicol) discussing the 2025 state budget proposal during a plenary session on Monday morning.
From Syvicol’s viewpoint, there is general satisfaction, as municipalities are set to receive an additional €250 million. Speaking to RTL, Syvicol President Emile Eicher labelled the recent announcement a “pleasant surprise”, arguing that €100 million more in commercial tax and €150 million more in the municipal fund help cover many existing “gaps”. However, Eicher pointed out that despite the positive news, budget gaps have widened considerably due to inflation, and the subsidies from the state have not kept pace with rising costs.
Eicher noted that since the state has not contributed to covering these additional expenses, the Union of Municipalities has raised concerns about the effectiveness of support measures, including caps on subsidies, questioning whether they are still appropriate. He emphasised that while members of Syvicol, regardless of political affiliation, agree on maintaining the principle of subsidy caps, they must be adjusted to align with current economic realities.
