If two indexes are to fall next year, the government will have to discuss with the social partners to find solutions, according to the director of the Chamber of Commerce.
Carlo Thelen presented on Tuesday the opinion of the Chamber of Commerce on the draft budget for 2025. A new index was planned this year, but due to a slight decline in inflation, it is not expected before next year. According to Statec, two index tranches could therefore fall in 12 months. According to the director of the Chamber of Commerce, this would not be good for businesses which already have a lot of problems.
Concerning the draft budget for next year, the Chamber of Commerce welcomed the fact that the government has “stabilized the current situation“He needs it now.”secure the future“. The Chamber of Commerce insisted on a certain number of difficulties or challenges, but it did not hide that it was rather satisfied with the action of the new CSV-DP government, particularly its prudent budgetary policy.
The jaws effect – the fact that central government spending increased faster than revenue – has been reduced again. Chamber of Commerce director Carlo Thelen admitted that this was mainly because some companies did good business and paid more taxes, and that investments often appear on paper but do not materialize .
If the Chamber of Commerce welcomes the stabilization at the level of the central State, it is something else at the level of Social Security. There, she would like to know how the government wants to remedy the pre-programmed deficits of the National Health Fund, but especially of the National Pension Insurance Fund. The 2012 reform was already going in the right direction, but it is no longer enough, according to Carlo Thelen. This is not about weakening the system. According to him, the expenses must be returned “more selective“. An increase in contributions would be harmful to competitiveness.
On the one hand, the population will age in the decades to come, on the other hand, the economy will grow less quickly than in previous decades and productivity, which is indeed high in our country, in particular thanks to the place financial, will stagnate. For the director of the Chamber of Commerce, this means that we must continue to innovate. According to Carlo Thelen, more is needed “communicate“on measures to support innovation and lead the smallest companies on the path to innovation. In a survey conducted by the Chamber of Commerce, companies that innovate say that their productivity has “massively” increase.
**How might the potential implementation of two index tranches within a year impact the competitiveness of Luxembourg’s small and medium-sized enterprises (SMEs) compared to those in neighboring countries?**
## World Today News Exclusive Interview: Analyzing Luxembourg’s Economic Future
**Introduction:**
Good evening, and welcome to World Today News. Tonight, we’re delving into the recent draft budget for 2025 presented by the Luxembourg government and its potential implications for businesses and the wider economy. To help us unpack this complex topic, we’re joined by two expert guests:
* **[Guest 1 Name and Title]** representing [Guest 1 Affiliation]
* **[Guest 2 Name and Title]** representing [Guest 2 Affiliation]
We’ll be discussing the potential impact of upcoming index tranches, the state of Social Security, and the importance of innovation for Luxembourg’s future prosperity.
**Section 1: The Looming Index Tranches**
* **Host:** Carlo Thelen, director of the Chamber of Commerce, has expressed concerns about the possibility of two index tranches falling within a year. Mr. [Guest 1 Name], could you elaborate on the potential impact this would have on businesses, particularly small and medium-sized enterprises? Are these concerns justified?
* **Host:** Ms. [Guest 2 Name], the article mentions a slight decline in inflation as a reason for the delayed index tranche. Do you think this delay is a prudent measure by the government, or could it lead to unforeseen consequences further down the line?
**Section 2: Evaluating the Draft Budget: Stability vs. Future Planning**
* **Host:** The Chamber of Commerce has voiced its satisfaction with the government’s “prudent budgetary policy.” Mr. [Guest 1 Name], can you elaborate on which specific aspects of the draft budget you believe demonstrate this prudence? Conversely, are there any areas where you see potential for improvement?
* **Host:** Ms. [Guest 2 Name], the article highlights a reduction in the “jaws effect,” a phenomenon where government spending outpaces revenue. Could you explain the factors contributing to this reduction? What are the long-term implications of this trend for Luxembourg’s fiscal stability?
**Section 3: The Challenge of Social Security**
* **Host:** The Chamber of Commerce has raised concerns about the sustainability of Social Security, particularly the National Health Fund and the National Pension Insurance Fund. Mr. [Guest 1 Name], the article mentions the need for more “selective” spending in these areas. Could you clarify what this means in practice, and what trade-offs might need to be considered?
* **Host:** Ms. [Guest 2 Name], what are your thoughts on the Chamber of Commerce’s call for more selective spending in Social Security? Do you believe there are alternative solutions to address the projected deficits without compromising the well-being of Luxembourg’s citizens?
**Section 4: Innovation as a Driver of Future Prosperity**
* **Host:** The article emphasizes the importance of innovation for Luxembourg’s long-term economic growth. Mr. [Guest 1 Name], based on the Chamber of Commerce’s findings, what specific measures can be taken to foster innovation, particularly among smaller businesses?
* **Host:** Ms. [Guest 2 Name], what are your views on the role of the government in promoting innovation? Do you believe the current approach isSufficient, or are there areas where policy interventions could have a greater impact?
**Closing Remarks:**
**Host:** Thank you both for sharing your insightful perspectives on these critical issues facing Luxembourg. Their insights provide a valuable contribution to the ongoing dialog about prioritizing economic stability and future growth for the benefit of all Luxembourg residents. This concludes our interview for today. We encourage our viewers to stay engaged on these important issues and continue to follow World Today News for updates and further analysis.
