5 stories you may have missed
News roundup
4 minutes
14.10.2022
In case you missed it, the Luxembourg Times has selected the top five news stories of the week.
In case you missed it, the Luxembourg Times has selected the top five news stories of the week.
Prime Minister Xavier Vettel (left) and Finance Minister Yuriko Backs (right) with the government’s 2023 budget proposal
Photo credit: Chris Karaba
Luxembourg faces crisis with historic deficit spending
On Wednesday, the Luxembourg government proposed running a historic €2.8 billion budget deficit next year as next year’s national elections approach.
In the €27.3 billion spending plan presented to parliamentarians by Finance Minister Yuriko Bax, almost half of central government spending goes to social security, subsidies, grants and transfers to social security. In addition, the 2023 budget proposal will increase public investment to a record high of his 3.8 billion euros.
“For a country like Luxembourg, outside of a crisis, such sums would be unthinkable. But in a crisis they are inevitable,” said Backes.
The increase in spending in 2023 is linked to the continued economic turmoil from the Covid-19 pandemic and the inflationary shock from Russia’s invasion of Ukraine in February, leaving the country’s debt at 24.6% of the current total economy. means to increase from In 2023 she will be 26.3% of GDP and in 2026 she will be 29.5%, she said.
Luxembourg MEPs condemn tax probe by their own commission
A member of the European Parliament in Luxembourg said he would not join next week’s fact-finding mission to investigate the Grand Duchy’s fight against tax avoidance, saying a visit by his own commission was a “waste of money”.
Christoph Hansen, a member of the opposition Christian Democratic Party (CSV), made the remarks during a debate at the European Parliament’s subcommittee on finance on Thursday.
The commission was discussing Luxembourg’s progress in cracking down on tax avoidance schemes ahead of its scheduled visit to the country next Thursday and Friday.
Describing the forthcoming visit as “wasting taxpayer money on tourism,” Hansen added: [fiscal subcommittee] We should focus on external tasks instead of blaming Member States. ”
He was reprimanded by the chairman of the committee, Dutch parliamentarian Paul Tann, saying that “it is clear that Luxembourg is involved” in promoting tax cuts for large companies.
Tan said the delegation was investigating several other EU member states and had just concluded a long debate on the same issue related to his own country, the Netherlands, on Thursday morning.
Luxembourg shows all signs of tax haven, UN says
Luxembourg displays “all the hallmarks of a tax haven” and the proposal to give up its status is too vague, the UN commission said in a report, citing the country’s plans for companies to combat human rights abuses. It is also criticized that there is a large gap in
Members of the 18-strong UN Commission on Economic, Social and Cultural Rights made the remarks at a meeting with the Luxembourg delegation on Friday as part of the country’s regular review.
The panel will investigate the country’s compliance with international agreements to which Luxembourg has signed and commit to defending rights in several areas such as work, education and housing.
While applauding Luxembourg’s efforts to close the gender gap in the workforce, the Committee raised concerns about the country’s commitment to making progress in areas such as tax and corporate human rights violations.
Luxembourg exhibits all signs of a tax haven, with “extremely low tax rates and shell companies used to hide funds,” says a report of a meeting between the commission and the Luxembourg delegation. increase.
Cargolux spends billions on new planes
Luxembourg cargo airline Cargolux pledged on Wednesday to spend billions of euros in a years-long effort to upgrade its aging fleet.
The state-owned freighter has confirmed an order with Boeing to purchase at least 10 777-8 freighters, with the option to purchase the six needed to replace the current 16 Boeing 747-400 jets. .
Neither company has disclosed how much Cargolux will pay or when it will start delivering the jets.
In January, CargoLux rival Qatar Airways placed an order for dozens of 777-8 freighters at an average price of $400 million (€412 million). At today’s prices, this means Cargolux has agreed to spend in the range of €4 billion for 10 aircraft and €6 billion for 16 jets.
Six other airlines have previously placed purchase orders for cargo jets that are expected to hit the market in January and start delivering to customers in five years.
EU spending error and fraud reports are on the rise, auditor says
Errors in EU spending rose for a fifth straight year in 2021, while reports of suspected fraud nearly tripled in 12 months, the EU’s Luxembourg-based auditor said Thursday. said in its annual report.
Issues were identified in 3% of all trades tracked last year. This is a level he has not seen since 2016, the European Court of Auditors concluded in its assessment of his EU spending for 2021.
An error does not necessarily mean that the transaction was fraudulent. The auditor defines an error as the funds not being used in accordance with EU and national regulations. For example, financial aid given to companies in violation of state aid regulations.
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http://www.luxtimes.lu/en/business-finance/five-stories-you-may-have-missed-63492cdbde135b9236b2358b 5 stories you may have missed
