About this Episode
Prime Minister Luc Frieden’s State of the Nation address has been criticised by opposition parties for failing to address citizens’ everyday realities. LSAP leader Taina Bofferding urged structural action on housing, calling for property and vacancy taxes and faster construction. ADR head Fred Keup blamed population growth for social strains and called for stronger Luxembourgish language measures, and Green MP Sam Tanson warned youth unemployment remains a major concern at about 20%.
The annual inflation has surged to 5.2% in April, placing the Grand Duchy among the EU’s highest and behind only Romania, Bulgaria and Croatia, Eurostat has reported; energy price rises have driven inflation across the euro area and pushed eurozone inflation back above target. Eurostat said energy inflation jumped to 10.8% in April, and national statistics agency STATEC has warned the conflict in the Middle East could push inflation higher and trigger automatic wage indexation.
Defence Minister Yuriko Backes has announced plans to raise defence spending by about 10% annually until 2029. The increases will lift defence to roughly 2.3% of GNI by 2029 and are aligned with NATO commitments, and the funding will support a Belgian‑Luxembourg binational battalion as well as cyber, space and other defence projects.
The country has recorded an unemployment rate of 6.3% last month, and National Employment Agency (ADEM) has warned resident jobseekers have risen year‑on‑year, notably among highly qualified workers and those aged 30–44. ADEM has said registrations have edged up while full‑benefit recipients have fallen. Employers have declared fewer vacancies, with demand strongest in IT, administrative roles, accountancy and care sectors, and the agency has urged targeted training and job matching to address the shifts
