Tripartite agreement in Luxembourg – Households and businesses will benefit from “targeted aid”
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LUXEMBOURG – The aid negotiated during the tripartite was presented this Thursday evening by the government. The idea is to support purchasing power and decarbonize the economy.
“We are in a crisis situation, it is important to help those who are suffering from severe losses in purchasing power”, indicated Yuriko Backes (DP), Minister of Finance, presenting this Thursday the measures negotiated at length during the tripartite, which offsets the ratio of an index this year and another next year. According to her, the support is “targeted” on the people and companies who need it the most.
Salaries up to 100,000 euros per year will benefit from an energy tax credit. The latter is established at 84 euros per month if the income does not exceed 44,000 euros, then 76 euros until the income is 68,000 euros, before continuing to decrease. The government has also announced an equivalent tax credit for Revis beneficiaries, an increase in student aid or a drop in the price of 7.5 centimes per liter of fuel at the pump. “The difference will be paid directly to oil tankers, so that the measure is reflected by a reduction at the pump”, specifies Yuriko Backes. A freeze and a rent subsidy will also be put in place.
Devices for the purchase of clean cars
On the business side, “some have seen their energy bills explode”, emphasizes Franz Fayot (LSAP), Minister of the Economy. Aid “covering between 30 and 70% of the additional cost of gas and electricity prices” is planned, as well as aid to pay for inputs and emission quotas. Guarantees for bank loans “will resemble what was done during the Covid-19 crisis”.
In total, “605 million euros are released for individuals and 225 million for companies. Provided that they decarbonize, because it is a priority”, hammered Xavier Bettel. Several schemes will be launched, in particular for the purchase of clean vehicles. “The measures cost about 1% of our GDP, calculated by Yuriko Backes. It’s a lot, but it’s important for those who need to be supported. Indexes that are too close together would be a problem for companies”. “We are witnessing a deterioration in the economy because of the war in Ukraine. My task is to ensure that the indicators do not slip,” she reveals.