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On RTL’s “Background am Gespréich”, Finance Minister Gilles Roth spoke about the state of public finances, the tax reform, the index, the financial centre and a number of current political dossiers. For Gilles Roth, the CSV remains a centrist party that combines economic dynamism with social cohesion.
- State revenues are developing positively
Before presenting the budget, Gilles Roth explained that state revenues had increased significantly this year. He spoke of an increase of around 8 to 10 percent compared with the previous year. At the same time, however, he warned against too much optimism: the strong revenues from the financial sector in particular should not be taken for granted.
- Tax reform as an investment in purchasing power
According to Gilles Roth, around 880 million euros are earmarked for the planned tax reform in 2028. He described the reform as an investment in purchasing power.
The aim is to adapt the tax system more closely to social reality.
Among other things, more account is to be taken of the situation of households in which both partners work, as well as of divorced parents.
The finance minister stressed that relief for lower incomes will be proportionally greater. Nothing is to be changed in the progressive nature of the tax system: higher incomes should continue to bear a larger share of the tax take.
The tax reform is part of a broader purchasing-power package. This also includes increasing child benefit, adjustments to the Chèque-service accueil and the Allocation de vie chère.
- More targeted recruitment in the civil service
New recruitment in the public sector should be justified by concrete needs. In certain areas, however, more staff would still be unavoidable when it comes to implementing the coalition agreement. Gilles Roth cited the police, defence and education as examples. At the same time, he is banking on more digitalisation and artificial intelligence in public administrations.
- Clear commitment to the index
On the index, Gilles Roth took a clear position. The current mechanism should not be changed. For the government, the index remains a central component of Luxembourg’s social model and an instrument for safeguarding purchasing power as prices rise.
In that context, the finance minister also confirmed that increases in the social minimum wage should remain tax-free until the end of the legislative term.
- The financial centre remains central to Luxembourg
For Gilles Roth, Luxembourg’s financial centre remains a central pillar of the economy and public finances. The finance minister believes the Luxembourg financial centre is well positioned. He pointed to growth in the fund industry and to a number of new banks that are setting up in Luxembourg. A strong financial centre would give the state the necessary revenues to invest in infrastructure and social benefits.
Gilles Roth also spoke out clearly against a centralisation of European financial supervision in Paris. With its expertise, responsiveness and pragmatic way of working, the CSSF is a key location advantage for Luxembourg.
- The state is keeping its BIL stake
In the context of speculation about a possible sale of the state’s BIL shares, Gilles Roth assured that the Luxembourg state will not sell its holding. For him, BIL remains a systemically important bank for private individuals, SMEs and the Luxembourg economy.
- Social dialogue as a factor of stability
Gilles Roth highlighted the importance of Luxembourg’s social model. The Tripartite had shown that employers, trade unions and the government can find solutions even in difficult times. This social and political stability is also an important location advantage for Luxembourg.
The RTL Background replay: