Luxembourg will have no choice but to slowly phase out fuel tourism, according to Georges Engel, Member of Parliament and Co-President of the LSAP. Speaking on RTL’s morning programme on Friday, Engel said the country needs to use less fuel, and less energy overall, to meet its climate goals, and stressed the need to view fuel tourism, energy supply and climate targets in an interconnected way.
Engel expressed reservations about expanding oil storage facilities for petroleum products and called instead for a stronger focus on energy efficiency. He argued that Luxembourg should step up building renovation programmes and increase remote working to reduce overall energy consumption.
He pointed out that, despite efforts to shift away from fossil fuels, petroleum products still account for about 60% of total energy usage in Luxembourg, and fuel and diesel taxes continue to generate over €800 million in annual revenue for the state. He criticised the recent tax reform, passed last week, for providing relief to higher earners while leaving this dependence on fuel revenue largely unaddressed.
Oil storage expansion and municipal compensation
Addressing the question of oil storage, Engel referred to comments by Energy Minister Lex Delles, who recently suggested that Luxembourg might need less storage capacity. Engel countered that, if more oil storage were required, it should not be concentrated in a single location, and that affected municipalities should receive compensation. Drawing on his experience as former mayor of Sanem, he cited his own municipality as an example: Sanem received new signage and a sports hall as compensation for hosting the Uerschterhaff prison.
LSAP’s longstanding environmental commitment
Engel stressed that the LSAP has always maintained an environmental outlook. Asked whether economic and green priorities have conflicted within the party, particularly during the terms of former LSAP economy ministers Jeannot Krecké and Robert Goebbels, he said: “We have always had these two tracks in our party, and that is a good thing.”
Labour reform: LSAP supports collective bargaining approach
On labour policy, Engel welcomed the approach of current Labour Minister Marc Spautz, who succeeded Georges Mischo after the 2023 change of government. Spautz has put forward proposals to make working time arrangements more flexible, but has insisted these changes must be negotiated within the framework of collective agreements, a key position for trade unions, which Engel and the LSAP endorse.
Engel added that regulations on part-time work distribution over a two-week period may require a more defined framework. He also noted that proposals for four-day working weeks with ten-hour days could prove impractical for many employees because of long commutes. According to Engel, the LSAP favours flexible arrangements agreed through collective bargaining, and he attributed the party’s inability to secure such reforms before 2023 to the uncompromising stance of employer organisations at the time, a situation he now believes has improved.
Interview in Luxembourgish:
Invité vun der Redaktioun: Georges Engel