Here's a summary of the main announcements aimed at strengthening various aspects of Luxembourg society

 

I. Tax Measures

Individuals
  • Adjustment of tax brackets (indexation) to four indicative levels this year for tax relief.
  • Proposal for a single tax class by 2026 with relief measures for single-parent taxpayers.
  • Introduction of new tax brackets to reduce taxes, with individualization of tax planned by 2026, including immediate adjustments for certain tax classes.
  • Introduction of a new tax scale reducing taxes for low and middle-income individuals.
Companies
  • Reduction of corporate tax rate from 17% to 16% effective January 1, 2025.

 

II. Housing

  • Ambitious plan to increase housing supply by simplifying administrative procedures and extending the validity of building permits.
  • Construction of new social housing to meet growing demand and regulation of real estate market prices.
  • Implementation of the "silence means consent" principle at national and local levels to expedite authorization responses.
  • Consolidation of procedures GDP (general development plan) and SDP (specific development plan) to reduce legal deadlines, with a special PAP for small projects with a maximum processing time of six months.

 

III. Construction Support (Business Support)

  • Creation of new support funds for small and medium enterprises to stimulate innovation and growth.
  • Simplification through centralized administrative procedures on a single platform following the "once only" principle.
  • Introduction of fiscal measures to stimulate the real estate market, such as accelerated depreciation and increased deductible interest for real estate loans.

 

IV. Environment

  • Reevaluation of environmental standards to avoid hindering construction projects while supporting renewable energies.
  • Adoption of new laws to protect natural spaces, encourage biodiversity, and implement more efficient recycling programs.

 

V. Work-Life Balance / Social Justice

  • Extension of parental leave by three months and flexibility of maternity leave. Extension of social security affiliation for stay-at-home parents.
  • Implementation of new policies to reduce inequalities through training and employment programs for youth and long-term unemployed.
  • Simplification of access to social benefits following the "once only" principle.

 

VI. Healthcare System Reform

  • Improvement of medical care with emphasis on outpatient services outside hospitals.
  • Increase in healthcare professionals' salaries and investment in new technologies for improved medical care.

 

VII. Security

  • Strengthening of police resources, integration of municipal police into the national police force, and introduction of immediate appearance procedures.
  • Increase in police personnel and enhancement of security measures in sensitive areas to combat crime.

 

VIII. Energy Transition

  • Strengthening measures to accelerate the transition to renewable energies, including subsidies for solar panels and heat pumps installation.
  • Maintenance of electricity price caps until 2025.
  • Introduction of climate bonuses to support energy renovation of homes, covering 50% of financing for photovoltaic installations.
  • Adaptation of mobility bonuses starting October 1, 2024.
  • Cap on subsidies for electric vehicle purchases at 6,000 euros, modulated based on consumption, with a requirement to keep the vehicle for three years to qualify.

 

IX. Education

  • Continued efforts to accommodate Luxembourg's linguistic and cultural diversity, with specific details to be announced.
  • Revision of the school curriculum to include more digital skills and subjects related to ecology.

 

X. Budget Management (Increase in Public Investments)

  • Commitment to maintaining sound management of public finances, with prudent use of debt to fund future policies while defending the country's AAA rating.
  • Launch of a multi-billion euro investment plan to improve infrastructure, including roads, schools, and hospitals.

 

Sources :

RTL Info
Paperjam.lu
https://www.virgule.lu/luxembourg/les-10-annonces-a-retenir-du-discours-de-l-etat-de-la-nation-de-luc-frieden/13828521.html