The European Commission recommends that Luxembourg pursue pension reform and efforts to reduce youth unemployment


The European Commission has presented its recommendations by countries within the framework of the «European Semester». According to the Vice-President of the Commission, Viviane Reding, Luxembourg is not currently a major concern in Europe. «However, it may become if not taking now measures for tomorrow.»

The first recommendation of the Commission in this regard relates to the aging of the population in Luxembourg. A reality that will have its impact on pensions, health and elderly care expenses. For Viviane Reding, «the country has to urgently find ways to take into account, in the future, this aging population.» The Commission recommends the continuation of the pension reform to raise the effective age of retirement, including limiting early retirement and linking the statutory retirement age to life expectancy.

Another recommendation from the Commission regarding the «extremely high youth unemployment» (17.4 %). The Commission recommends that Luxembourg «to continue efforts to reduce youth unemployment, especially among low-skilled job seekers from immigration in the context of the coherent strategy.»

The Commission also advocates investing in research to modify the structure of the economy. According to Viviane Reding, Luxembourg’s goal is «to invest 2.6% of GDP in research (currently 1%, invested mostly by the state). For the Commissioner, it would be normal to have more investment and more partnerships between public research and companies.

The Commission recommends that the Luxembourg reform the wage indexation system.