Yes clearly. That apparently most job growth is in the public sector is of course not sustainable nor a good thing. They really need to rethink the pay in the public sector. Currently an entry level job (A1) at the state pays 7k gross a month. This is what middle management earns in the private sector.Â
Yes. I’ve been saying this in many posts on this sub and got downvoted. I don’t think a negative reaction is very helpful, rather than ackowledging the issues and discussing possible solutions.
Over the last 20-30y Luxembourg grew a lot thanks to a mix globalization, EU expansion, comparative tax advantages for corporations and an expading France and German economies. Now pretty mich all of that is under threat. This boom has also resulted in an unsustainable housing boom which built equity for early movers which bought, now housing has bevome an issue and a big challange for people considering moving into Lux. Unfortunately I think a small country like Lux is dependent on a pipeline of companies coming and growing and labour coming in, as soon as this stops or grows much slower that could pose a threat to the overall model and of course pension system which unfortunately in most of Europe is the socialist pay-as-you-go so you need to keep an influx of people to pay pensions of the future retirees. I don’t know how the future will look like for Lux but definately the booming times are gone.
Luxembourg will do anything for the triple A rating so if this will affect it then they will address it, one way or another.
Topic approached at the ALFI AGM this year where Marco Zwick from the CSSF addressed the over regulation and competitiveness of the fund industry. In a nutshell, market participants are free to collaborate, formalise a document and then discuss it with the CSSF. They will push this to the EU commission if the concerns have merit.
It’s not a secret really. Our economic engine is made up of real estate, finance and public spending. The former is basically a zombie, the second is holding up well given circumstances but isn’t likely to generate growth due to consolidation and innovation and the latter, well I think enough has been said about public spending and the civil service.
The problem is that we dug this hole for ourselves over generations of political inaction and short-termism and addressing them is political suicide in a country where the majority of the electorate works in public service.
We don’t really need radical reform from day one, small gradual changes would already be a start but there doesn’t seem to be political appetite even for that.
Cut taxes, cut defense spending to finance it (let’s be real, why Lux needs an army?) Cut bureaucracy. Automate public services. Non-eu locations are increasing in popularity despite lack of infrastructure/unbearable weather conditions/political instability because EU is just really unfavourable in those key aspects for businesses.
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Yes clearly. That apparently most job growth is in the public sector is of course not sustainable nor a good thing. They really need to rethink the pay in the public sector. Currently an entry level job (A1) at the state pays 7k gross a month. This is what middle management earns in the private sector.Â
Yes. I’ve been saying this in many posts on this sub and got downvoted. I don’t think a negative reaction is very helpful, rather than ackowledging the issues and discussing possible solutions.
Over the last 20-30y Luxembourg grew a lot thanks to a mix globalization, EU expansion, comparative tax advantages for corporations and an expading France and German economies. Now pretty mich all of that is under threat. This boom has also resulted in an unsustainable housing boom which built equity for early movers which bought, now housing has bevome an issue and a big challange for people considering moving into Lux. Unfortunately I think a small country like Lux is dependent on a pipeline of companies coming and growing and labour coming in, as soon as this stops or grows much slower that could pose a threat to the overall model and of course pension system which unfortunately in most of Europe is the socialist pay-as-you-go so you need to keep an influx of people to pay pensions of the future retirees. I don’t know how the future will look like for Lux but definately the booming times are gone.
Luxembourg will do anything for the triple A rating so if this will affect it then they will address it, one way or another.
Topic approached at the ALFI AGM this year where Marco Zwick from the CSSF addressed the over regulation and competitiveness of the fund industry. In a nutshell, market participants are free to collaborate, formalise a document and then discuss it with the CSSF. They will push this to the EU commission if the concerns have merit.
It’s not a secret really. Our economic engine is made up of real estate, finance and public spending. The former is basically a zombie, the second is holding up well given circumstances but isn’t likely to generate growth due to consolidation and innovation and the latter, well I think enough has been said about public spending and the civil service.
The problem is that we dug this hole for ourselves over generations of political inaction and short-termism and addressing them is political suicide in a country where the majority of the electorate works in public service.
We don’t really need radical reform from day one, small gradual changes would already be a start but there doesn’t seem to be political appetite even for that.
Cut taxes, cut defense spending to finance it (let’s be real, why Lux needs an army?) Cut bureaucracy. Automate public services. Non-eu locations are increasing in popularity despite lack of infrastructure/unbearable weather conditions/political instability because EU is just really unfavourable in those key aspects for businesses.
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