Social Policies
#2Key Findings
With a generous social safety net, Luxembourg falls into the top ranks internationally (rank 2) for its social policies. Its score on this measure has improved by 0.4 points relative to 2014.
A reform of the education system is underway, focusing on creativity and digital skills. Linguistic complexity generates difficulties for many students, especially migrants. The government provided iPads and software for students during pandemic lockdowns. Minimum wages are high, and housing assistance funds help with high housing costs. In-work poverty is a growing problem.
The healthcare system is very good. About 99% of the population is covered by the state system, with 75% having additional insurance. The system relies on cross-border workers, and nearly collapsed when the border to France was closed during the pandemic. Pension benefits are very generous, but the system has sustainability concerns.
Child benefit levels are very high. Family-friendly workplace arrangements have been improved, and gender pay gaps have decreased. Low-income households are provided with free childcare. More than half of the country’s residents have a migrant background. Special integration programs are provided for children in schools, but dropout rates for children of migrant parents remain high.
A reform of the education system is underway, focusing on creativity and digital skills. Linguistic complexity generates difficulties for many students, especially migrants. The government provided iPads and software for students during pandemic lockdowns. Minimum wages are high, and housing assistance funds help with high housing costs. In-work poverty is a growing problem.
The healthcare system is very good. About 99% of the population is covered by the state system, with 75% having additional insurance. The system relies on cross-border workers, and nearly collapsed when the border to France was closed during the pandemic. Pension benefits are very generous, but the system has sustainability concerns.
Child benefit levels are very high. Family-friendly workplace arrangements have been improved, and gender pay gaps have decreased. Low-income households are provided with free childcare. More than half of the country’s residents have a migrant background. Special integration programs are provided for children in schools, but dropout rates for children of migrant parents remain high.
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To what extent does education policy deliver high-quality, equitable and efficient education and training?
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9
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Education policy fully achieves the criteria.
8
7
6
7
6
Education policy largely achieves the criteria.
5
4
3
4
3
Education policy partially achieves the criteria.
2
1
1
Education policy does not achieve the criteria at all.
The constitution of Luxembourg guarantees a fundamental right to education (Art. 23), and primary and secondary education are free of charge. Early childhood education is optional starting at age three, but school attendance is compulsory from the age of four years until 16. The Luxembourg school system includes public, private and international education institutions. Pupils may also attend school in a foreign country, as well as home (under certain conditions). For children with special needs, a special education system (“éducation différenciée”) has been put in place, but the aim is to integrate children with special needs into the mainstream education. After six years of elementary school, students must choose one of two tracks, a general (the former “secondaire technique”) or an academic (“classique”) one. There is also a dual apprenticeship system (“formation en alternance”) for students aged 15, which combines an apprenticeship with vocational classes.
Luxembourg’s education policy must deal with the challenges of a multilingual and multicultural society, which produces a high proportion of foreign students. According to the OECD’s Program for International Student Assessment (PISA) released in December 2019, secondary education is a cause of concern. Luxembourg is ranked 28th, behind its neighbors Germany (12th), Belgium (21st) and France (27th). Among the causes can be mentioned the difficulties of the trilingual school system approach (covering the German, Luxembourgish and French languages), as well as the economic difficulties encountered by students (55% of 15-year-old pupils are immigrants). Three in eight immigrant students in Luxembourg were socioeconomically disadvantaged (similar to the OECD average). The ongoing reform of fundamental education (the first nine years of schooling) is based on five key skills (critical thinking, creativity, communication, collaboration and coding), with an emphasis on the “Einfach Digital” (simply digital) strategy. In 2020, the Ministry of Education invested €4.8 million to provide students with 10,603 iPads (including €2.5 million each year for licenses and software). Thus, pupils were well equipped to shift to full home schooling on several occasions between March 2020 and December 2021.
In the 2022 state budget, education expenditure will amount to €3.1 billion (+10% compared to 2021). This will finance the recruitment of 1,000 more teachers, free daycare during the school periods, free school lunches for children from low-income families and free music education.
The University of Luxembourg, which is a multilingual, international, interdisciplinary and research-oriented public institution, has a current enrollment of 6,783 students originating from 130 different countries. The academic staff (drawn from 94 different countries) numbers 1,668 people, including doctoral candidates, postdoctoral researchers, research associates, professors and lecturers. According to the multi-year contract (“convention pluriannuelle”) signed on 13 January 2022 by the Ministry of Higher Education and Research and the University of Luxembourg, the university’s public endowment for the years 2022-2025 will reach a record total of €908.3 million, an almost 17% increase over the previous four-year period.
The Luxembourg government offers grants for studies abroad allocated in the form of a grant (“bourse”), a loan (“prêt”) or assistance with enrollment fees (“frais d’inscription”). Without giving too many details, it is useful to mention that Luxembourg has lost several cases before the European Court of Justice regarding problems in allocating study grants to the children of cross-border workers.
In 2021, Luxembourg’s lifelong learning system provided about 11,916 trainings programs in 62 training domains, delivered by 299 training providers. The University of Luxembourg, the Luxembourg Learning Centre, the Center of Competences (located in Belval), the House of Training, the Chamber of Commerce, and the Chambre des Salariés, are among the main actors in this field.
Citations:
“New convention ensures University’s public endowment for next 4 years.” University of Luxembourg (13 January 2022). https://wwwen.uni.lu/university/news/slideshow/new_convention_ensures_university_s_public_endowment_for_next_4_years. Accessed 154 january 2022.
“2022 Budget Prioritises Investment in Climate Action, Housing, Digitalization.” Chronicle.lu (13 October 2021). https://chronicle.lu/category/finance-1/38001-2022-budget-prioritises-investment -in-climate-action-housing-digitalization. Accessed 3 January 2022.
“Les chiffres de la rentrée 2021-2022.” Le Gouvernement du Grand-Duché de Luxembourg. Ministère de l’Éducation nationale, de l’Enfance et de la Jeuness. (10 September 2021). https://men.public.lu/en/actualites/communiques-conference-presse/2021/09/10-chiffres-rentree.html. Accessed 3 January 2022.
“Luxembourg: National Reforms in School Education.” European Commission (1 April 2021). https://eacea.ec.europa.eu/national-policies/eurydice/content/national-reforms-school-education-40_en. Accessed 3 January 2022.
“Luxembourg: Ensuring equal opportunities for students across socioeconomic backgrounds.” OECD (2021). https://www.oecd-ilibrary.org/sites/80c98885-en/index.html?itemId=/content/component/80c98885-en#section-d12020e14161. Accessed 3 January 2022.
“Education at a Glance, 2021.” OECD (2021). https://dx.doi.org/10.1787/69096873-en. Accessed 3 January 2022.
“The state of global education – 18 months into the pandemic,” OECD (2021). https://doi.org/10.1787/1a23bb23-en. Accessed 3 January 2022.
“Luxembourg and PISA – Immigrant children in the school system.” OECD (4 December 2019). https://ec.europa.eu/migrant-integration/library-document/luxembourg-and-pisa-immigrant-children-school-system_en. Accessed 3 January 2022.
Luxembourg’s education policy must deal with the challenges of a multilingual and multicultural society, which produces a high proportion of foreign students. According to the OECD’s Program for International Student Assessment (PISA) released in December 2019, secondary education is a cause of concern. Luxembourg is ranked 28th, behind its neighbors Germany (12th), Belgium (21st) and France (27th). Among the causes can be mentioned the difficulties of the trilingual school system approach (covering the German, Luxembourgish and French languages), as well as the economic difficulties encountered by students (55% of 15-year-old pupils are immigrants). Three in eight immigrant students in Luxembourg were socioeconomically disadvantaged (similar to the OECD average). The ongoing reform of fundamental education (the first nine years of schooling) is based on five key skills (critical thinking, creativity, communication, collaboration and coding), with an emphasis on the “Einfach Digital” (simply digital) strategy. In 2020, the Ministry of Education invested €4.8 million to provide students with 10,603 iPads (including €2.5 million each year for licenses and software). Thus, pupils were well equipped to shift to full home schooling on several occasions between March 2020 and December 2021.
In the 2022 state budget, education expenditure will amount to €3.1 billion (+10% compared to 2021). This will finance the recruitment of 1,000 more teachers, free daycare during the school periods, free school lunches for children from low-income families and free music education.
The University of Luxembourg, which is a multilingual, international, interdisciplinary and research-oriented public institution, has a current enrollment of 6,783 students originating from 130 different countries. The academic staff (drawn from 94 different countries) numbers 1,668 people, including doctoral candidates, postdoctoral researchers, research associates, professors and lecturers. According to the multi-year contract (“convention pluriannuelle”) signed on 13 January 2022 by the Ministry of Higher Education and Research and the University of Luxembourg, the university’s public endowment for the years 2022-2025 will reach a record total of €908.3 million, an almost 17% increase over the previous four-year period.
The Luxembourg government offers grants for studies abroad allocated in the form of a grant (“bourse”), a loan (“prêt”) or assistance with enrollment fees (“frais d’inscription”). Without giving too many details, it is useful to mention that Luxembourg has lost several cases before the European Court of Justice regarding problems in allocating study grants to the children of cross-border workers.
In 2021, Luxembourg’s lifelong learning system provided about 11,916 trainings programs in 62 training domains, delivered by 299 training providers. The University of Luxembourg, the Luxembourg Learning Centre, the Center of Competences (located in Belval), the House of Training, the Chamber of Commerce, and the Chambre des Salariés, are among the main actors in this field.
Citations:
“New convention ensures University’s public endowment for next 4 years.” University of Luxembourg (13 January 2022). https://wwwen.uni.lu/university/news/slideshow/new_convention_ensures_university_s_public_endowment_for_next_4_years. Accessed 154 january 2022.
“2022 Budget Prioritises Investment in Climate Action, Housing, Digitalization.” Chronicle.lu (13 October 2021). https://chronicle.lu/category/finance-1/38001-2022-budget-prioritises-investment -in-climate-action-housing-digitalization. Accessed 3 January 2022.
“Les chiffres de la rentrée 2021-2022.” Le Gouvernement du Grand-Duché de Luxembourg. Ministère de l’Éducation nationale, de l’Enfance et de la Jeuness. (10 September 2021). https://men.public.lu/en/actualites/communiques-conference-presse/2021/09/10-chiffres-rentree.html. Accessed 3 January 2022.
“Luxembourg: National Reforms in School Education.” European Commission (1 April 2021). https://eacea.ec.europa.eu/national-policies/eurydice/content/national-reforms-school-education-40_en. Accessed 3 January 2022.
“Luxembourg: Ensuring equal opportunities for students across socioeconomic backgrounds.” OECD (2021). https://www.oecd-ilibrary.org/sites/80c98885-en/index.html?itemId=/content/component/80c98885-en#section-d12020e14161. Accessed 3 January 2022.
“Education at a Glance, 2021.” OECD (2021). https://dx.doi.org/10.1787/69096873-en. Accessed 3 January 2022.
“The state of global education – 18 months into the pandemic,” OECD (2021). https://doi.org/10.1787/1a23bb23-en. Accessed 3 January 2022.
“Luxembourg and PISA – Immigrant children in the school system.” OECD (4 December 2019). https://ec.europa.eu/migrant-integration/library-document/luxembourg-and-pisa-immigrant-children-school-system_en. Accessed 3 January 2022.
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To what extent does social policy prevent exclusion and decoupling from society?
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Policies very effectively enable societal inclusion and ensure equal opportunities.
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For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
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3
For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
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1
1
Policies exacerbate unequal opportunities and exclusion from society.
Luxembourg has a very vibrant economy, with a GDP per capita of €101,760 in 2020, which was more than three times higher than the euro area average. However, according to several studies carried out by STATEC, 25% of Luxembourg households reported having financial difficulties, approximately 30% of households indicated that they are struggling to pay off their homes, and 5.6% of were falling below the poverty threshold as a result of low income and purchasing power. According to EUROSTAT, 96.5 million people in the EU (or approximately 20% of Europeans) were at risk of poverty or social exclusion. With a comparable rate of 19.9%, in 2020 and 17.2% in 2021 (estimation), Luxembourg ranks below the EU average of 21.9%.
Another phenomenon is the risk of in-work poverty; Luxembourg’s rate is the third-highest among EU countries. STATEC reports that 103,600 people live below the monetary poverty threshold (€1,804 per month for a single adult). In December 2020, the in-work poverty rate was 11.9%, down from its peak of 12.1% a year before. The highest rate was of 30.7%, within the 18- to 24-year-old age group.
Job seekers (with a risk rate of 40.3%) and the inactive population (43.9%) are the most vulnerable categories. Among children 17 or under, the poverty rate is 24.8%. Pensioners fare the best (8.7%), while single young people, persons with low levels of education, job seekers and single-parent families are most affected. Foreigners have a poverty risk twice as high as that of nationals (21.7% compared with 10.9%). However, both STATEC and EUROSTAT reported that monetary social transfers to households (benefits, subsidies, etc.) are having less and less effect with regard to poverty reduction. It also noted that wage inequality in Luxembourg was unaffected by the coronavirus pandemic.
On 1 January 2021, the government introduced an increase of the social minimum wage by 2.8% (to €2,201.93 for unskilled workers and €2,642.32 for skilled workers), and adjusted the social inclusion income (REVIS). Over the last decade, the minimum wage in Luxembourg, which is the highest in the EU, increased by €450. Another measure is the housing assistance program, which includes rent subsidies (at least €300/month according to the composition and income of the household), state help in financing a rent guarantee, the option of renting a subsidized or social housing, and a possible court appeal directed at the social real estate agencies. The government may also provide funding for special arrangements benefiting persons with reduced mobility or with specific accommodation needs (up to €15,000 and 60% of the costs of remodeling work needed to meet the recipient’s needs). Nevertheless, the overall provision of social housing remains below the European average. The 2022 state budget calls for a reform of the property tax system by the end of 2022, by targeting unoccupied real estate and buildings and/or land, with the aim of limiting the ability to hold them for the purposes of speculation. According to “Observatoire de l’Habitat” studies, 65.2% of land ownership intended for housing is held by natural persons.
Social inclusion in Luxembourg is also strongly reinforced by the development of projects co-financed by the European Social Fund.
Citations:
“De Budget 2022.” Luxembourg’s Stat Budget 2022 official website. The Government of the Grand Duchy of Luxembourg. https://budget.public.lu/lb.html. Accessed 3 January 2022.
“At-risk-of-poverty rate by poverty threshold, age and sex.” EUROSTAT - EU-SILC and ECHP surveys (17 December 2021). https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_li02&lang=en. Accessed 3 January 2022.
“Luxembourg City wins 2022 Access City Award for becoming more accessible to persons with disabilities.” European Union (December 2021). https://ec.europa.eu/social/main.jsp?catId=1141. Accessed 3 January 2022.
Allegrezza, Serge; Hury, Jerôme. “Rapport travail et cohésion sociale 2021. Des inégalités de revenus inchangées malgré la crise COVID-19.” STATEC (14 October 2021). https://statistiques.public.lu/fr/actualites/conditions-sociales/conditions-vie/2021/10/20211014/Rapport-travail-et-cohesion-sociale-2021_impression.pdf. Accessed 3 January 2022.
“Sozialalmanach, Luxembourg 2021.” Caritas (27 July 2021). Le “Sozialalmanach” est publié tous les ans au préalable du discours du Premier ministre sur l’état de la nation et sert d’instrument de dialogue avec les décideurs politiques, la société civile et l’économie. https://paperjam.lu/article/crise-a-davantage-aggrave-pauv. Accessed 3 January 2022.
“Governance of migrant integration in Luxembourg, 2020.” European Commission (2021). https://ec.europa.eu/migrant-integration/country-governance/governance/luxembourg_en. Accessed 3 January 2022.
“Working Yet Poor Project.” National Report for Luxembourg (6 July 2021). https://workingyetpoor.eu/press/. Accesed 3 Jan.2022.
“Les enfants pauvres, «premières victimes» du covid.” Luxemburger Wort (26 June 2021).https://www.wort.lu/fr/luxembourg/les-enfants-pauvres-premieres-victimes-du-covid-60d20435de135b9236fbe1cc. Accessed 3 January 2022.
Rapport d’activité 2020. (Mars 2021). Le Gouvernement du Grand-Duché de Luxembourg. Ministère du Travail, de l’Emploi et de l’Économie sociale et solidaire. https://adem.public.lu/en/publications/adem/2021/rapport-activites-complet-mtees s.html. Accessed 3 Jan.2021.
“Indicateurs de risque de pauvreté (2003-2019).” STATEC (2020). https://statistiques.public.lu/stat/TableViewer/tableViewHTML.aspx?ReportId=12957&IF_Language=fra&MainTheme=3&FldrName=1&RFPath=29. Accessed 3 January 2022.
Another phenomenon is the risk of in-work poverty; Luxembourg’s rate is the third-highest among EU countries. STATEC reports that 103,600 people live below the monetary poverty threshold (€1,804 per month for a single adult). In December 2020, the in-work poverty rate was 11.9%, down from its peak of 12.1% a year before. The highest rate was of 30.7%, within the 18- to 24-year-old age group.
Job seekers (with a risk rate of 40.3%) and the inactive population (43.9%) are the most vulnerable categories. Among children 17 or under, the poverty rate is 24.8%. Pensioners fare the best (8.7%), while single young people, persons with low levels of education, job seekers and single-parent families are most affected. Foreigners have a poverty risk twice as high as that of nationals (21.7% compared with 10.9%). However, both STATEC and EUROSTAT reported that monetary social transfers to households (benefits, subsidies, etc.) are having less and less effect with regard to poverty reduction. It also noted that wage inequality in Luxembourg was unaffected by the coronavirus pandemic.
On 1 January 2021, the government introduced an increase of the social minimum wage by 2.8% (to €2,201.93 for unskilled workers and €2,642.32 for skilled workers), and adjusted the social inclusion income (REVIS). Over the last decade, the minimum wage in Luxembourg, which is the highest in the EU, increased by €450. Another measure is the housing assistance program, which includes rent subsidies (at least €300/month according to the composition and income of the household), state help in financing a rent guarantee, the option of renting a subsidized or social housing, and a possible court appeal directed at the social real estate agencies. The government may also provide funding for special arrangements benefiting persons with reduced mobility or with specific accommodation needs (up to €15,000 and 60% of the costs of remodeling work needed to meet the recipient’s needs). Nevertheless, the overall provision of social housing remains below the European average. The 2022 state budget calls for a reform of the property tax system by the end of 2022, by targeting unoccupied real estate and buildings and/or land, with the aim of limiting the ability to hold them for the purposes of speculation. According to “Observatoire de l’Habitat” studies, 65.2% of land ownership intended for housing is held by natural persons.
Social inclusion in Luxembourg is also strongly reinforced by the development of projects co-financed by the European Social Fund.
Citations:
“De Budget 2022.” Luxembourg’s Stat Budget 2022 official website. The Government of the Grand Duchy of Luxembourg. https://budget.public.lu/lb.html. Accessed 3 January 2022.
“At-risk-of-poverty rate by poverty threshold, age and sex.” EUROSTAT - EU-SILC and ECHP surveys (17 December 2021). https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_li02&lang=en. Accessed 3 January 2022.
“Luxembourg City wins 2022 Access City Award for becoming more accessible to persons with disabilities.” European Union (December 2021). https://ec.europa.eu/social/main.jsp?catId=1141. Accessed 3 January 2022.
Allegrezza, Serge; Hury, Jerôme. “Rapport travail et cohésion sociale 2021. Des inégalités de revenus inchangées malgré la crise COVID-19.” STATEC (14 October 2021). https://statistiques.public.lu/fr/actualites/conditions-sociales/conditions-vie/2021/10/20211014/Rapport-travail-et-cohesion-sociale-2021_impression.pdf. Accessed 3 January 2022.
“Sozialalmanach, Luxembourg 2021.” Caritas (27 July 2021). Le “Sozialalmanach” est publié tous les ans au préalable du discours du Premier ministre sur l’état de la nation et sert d’instrument de dialogue avec les décideurs politiques, la société civile et l’économie. https://paperjam.lu/article/crise-a-davantage-aggrave-pauv. Accessed 3 January 2022.
“Governance of migrant integration in Luxembourg, 2020.” European Commission (2021). https://ec.europa.eu/migrant-integration/country-governance/governance/luxembourg_en. Accessed 3 January 2022.
“Working Yet Poor Project.” National Report for Luxembourg (6 July 2021). https://workingyetpoor.eu/press/. Accesed 3 Jan.2022.
“Les enfants pauvres, «premières victimes» du covid.” Luxemburger Wort (26 June 2021).https://www.wort.lu/fr/luxembourg/les-enfants-pauvres-premieres-victimes-du-covid-60d20435de135b9236fbe1cc. Accessed 3 January 2022.
Rapport d’activité 2020. (Mars 2021). Le Gouvernement du Grand-Duché de Luxembourg. Ministère du Travail, de l’Emploi et de l’Économie sociale et solidaire. https://adem.public.lu/en/publications/adem/2021/rapport-activites-complet-mtees s.html. Accessed 3 Jan.2021.
“Indicateurs de risque de pauvreté (2003-2019).” STATEC (2020). https://statistiques.public.lu/stat/TableViewer/tableViewHTML.aspx?ReportId=12957&IF_Language=fra&MainTheme=3&FldrName=1&RFPath=29. Accessed 3 January 2022.
Graph View
To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?
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9
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Health care policy achieves the criteria fully.
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7
6
Health care policy achieves the criteria largely.
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3
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3
Health care policy achieves the criteria partly.
2
1
1
Health care policy does not achieve the criteria at all.
Luxembourg has one of the best healthcare systems in Europe, based on a high standard of state-funded medical coverage. While 99% of the population is covered by the state healthcare system, about 75% have some extra form of private health insurance. Healthcare is administered by the Ministry of Health, which is responsible for policy, regulation and overseeing services. The majority of funding comes from the health insurance contribution to the National Health Fund. This payment is carried out via Luxembourg’s Social Security System, which represents 84% of total public healthcare expenditure. The compulsory insurance scheme covers 80% to 90% of overall healthcare costs. Residents have to pay between 10% and 20% of a general service’s costs, up to 20% of prescription costs (60% for non-essential medication), and around €22 a night for hospital stays. The country is one of the lowest healthcare spenders in the EU (just 6.2% of GDP per year), but has one of the highest per capita expenditures (over €5,500 per person per year). After the United States and Switzerland, Luxembourg has the third-most-expensive healthcare services within the OECD, due to high wages, a high ratio of medical equipment to residents, and a low generic substitution rate.
The Grand Duchy’s health system has considerable material resources for a country its size. In 2020, the Hospital Federation (FHL) – which includes four hospital centers, six specialized hospital establishments (heart surgery, radiotherapy, neuropsychiatry, post-oncology, geriatrics and functional reeducation), an institution for end-of-life care, and a diagnostics center – had 2,657 beds, an operating budget of €1,182.9 million, and a workforce of approximately 17,595 people, of which 70% are cross-border workers. In 2021, approximately 209,014 workers crossed the Luxembourg border on a daily basis (+2.7% compared with 2020). The coronavirus pandemic showed that the country’s medical and hospital sectors are entirely dependent on this cross-border workforce. When France decided on 13 March 2020 to close its border with Luxembourg, the Grand Duchy faced the real risk of “a collapse of the health system.”
In consequence, the government launched the national consultation on health (“Gesondheetsdësch”) in order to develop a strategy addressing the current gaps. Based around the University of Luxembourg, a new system of training for healthcare professionals is to be launched in 2023, offering various levels of qualification (new bachelor-level programs for general and specialized nursing, for midwives, and for technical medical assistants in radiology). The Lycée Technique pour Professions de la Santé (a technical secondary school specializing in health professions) also remains an important player in the field. The reorganization of higher education in the area of health professions will be evaluated in 2028.
The health technology ecosystem is also being reformed, with a focus on diagnostics, digital health, health data analysis and portable medical devices. Its management is conducted by the Luxembourg HealthTech Cluster (HTC), which by 2019 included around 136 specialist public and companies, with 1,600 professionals and a value added of €180 million (0.35% of GDP). The 2021-2025 investment program is focused on the “Südspidol” (total budget of €542 million, 80% funded by the government), which will bring together the hospitals of Esch-sur-Alzette, Dudelange and Niederkorn. The new consortium, which will diminish the operating costs of the three existing hospitals by 15%, will meet the growing healthcare needs of the Greater Region.
Citations:
Danescu, Elena. “Luxembourg Economy.” In Hartly C. (Ed). Western Europe 2022. Western Europe Book Series. Routledge, Abington:UK, 2022. pp. 464-481.
“Cross-border workers: COVID-19 agreements extended until, at least, 31 March 2022.” Loyens % Loeff. https://www.loyensloeff.com/en/en/news/news-articles/cross-border-workers-covid-19-agreements-extended-until-at-least-31-march-2022-n20159/. Accessed 3 January 2022.
Bettel, Xavier. “State of the Nation 2021” (12 October 2021). https://gouvernement.lu/en/gouvernement/xavier-bettel/actualites.gouvernement%2Ben%2Bactualites%2Btoutes_actualites%2Bdiscours%2B2021%2B10-octobre%2B12-etat-de-la-nation.html. Accessed 3 January 2022.
“Luxembourg - Südspidol hospital project.” RTL Today (17 September 2021). https://today.rtl.lu/news/luxembourg/a/1788041.html. Accessed 3 January 2022.
“Rapport annuel 2020.” Centre Commun de la Sécurité Sociale. (September 2021). https://ccss.public.lu/fr/actualites/2021/07/15.html. Accessed 3 January 2022.
“Rapport d’activité du Ministère de la Santé 2020” (August 2021). https://sante.public.lu/fr/publications/r/rapport-activite-ministere-sante-2020/index.html. Accessed 3 January 2022.
“Luxembourg Considers Introducing Nursing Degree in response to Labor Shortage.” (8 January 2021). Chronicle.lu. https://chronicle.lu/category/medical/35164-luxembourg-considers-introducing-nursing-degree-in-response-to-labor-shortage. Accessed 3 January 2022.
“Stability and Growth Programme of the Grand Duchy of Luxembourg 2021 > 2025”/De Stabilitéits-Programm.”
The Government of the Grand Duchy of Luxembourg. Ministry of Finance. https://ec.europa.eu/info/sites/default/files/2021-luxembourg-stability-programm e_en.pdf. Accessed 03 Jan.2021.
“National Plan for a Green, Digital and Inclusive Transition. National Reform Programme of the Grand Duchy of Luxembourg under the European semester 2021.” The Government of the Grand Duchy of Luxembourg. https://ec.europa.eu/info/sites/default/files/2021-european-semester-national-re form-programme-luxembourg_en.pdf. Accessed 03 Jan.2022.
“State of Health in the EU. Luxembourg: Country Health Profile 2019.” OECD & the European Observatory on Health Systems and Policies & European Union. (2020). https://ec.europa.eu/health/sites/default/files/state/docs/2019_chp_lu_english.pdf. Accessed 3 January 2022.
The Grand Duchy’s health system has considerable material resources for a country its size. In 2020, the Hospital Federation (FHL) – which includes four hospital centers, six specialized hospital establishments (heart surgery, radiotherapy, neuropsychiatry, post-oncology, geriatrics and functional reeducation), an institution for end-of-life care, and a diagnostics center – had 2,657 beds, an operating budget of €1,182.9 million, and a workforce of approximately 17,595 people, of which 70% are cross-border workers. In 2021, approximately 209,014 workers crossed the Luxembourg border on a daily basis (+2.7% compared with 2020). The coronavirus pandemic showed that the country’s medical and hospital sectors are entirely dependent on this cross-border workforce. When France decided on 13 March 2020 to close its border with Luxembourg, the Grand Duchy faced the real risk of “a collapse of the health system.”
In consequence, the government launched the national consultation on health (“Gesondheetsdësch”) in order to develop a strategy addressing the current gaps. Based around the University of Luxembourg, a new system of training for healthcare professionals is to be launched in 2023, offering various levels of qualification (new bachelor-level programs for general and specialized nursing, for midwives, and for technical medical assistants in radiology). The Lycée Technique pour Professions de la Santé (a technical secondary school specializing in health professions) also remains an important player in the field. The reorganization of higher education in the area of health professions will be evaluated in 2028.
The health technology ecosystem is also being reformed, with a focus on diagnostics, digital health, health data analysis and portable medical devices. Its management is conducted by the Luxembourg HealthTech Cluster (HTC), which by 2019 included around 136 specialist public and companies, with 1,600 professionals and a value added of €180 million (0.35% of GDP). The 2021-2025 investment program is focused on the “Südspidol” (total budget of €542 million, 80% funded by the government), which will bring together the hospitals of Esch-sur-Alzette, Dudelange and Niederkorn. The new consortium, which will diminish the operating costs of the three existing hospitals by 15%, will meet the growing healthcare needs of the Greater Region.
Citations:
Danescu, Elena. “Luxembourg Economy.” In Hartly C. (Ed). Western Europe 2022. Western Europe Book Series. Routledge, Abington:UK, 2022. pp. 464-481.
“Cross-border workers: COVID-19 agreements extended until, at least, 31 March 2022.” Loyens % Loeff. https://www.loyensloeff.com/en/en/news/news-articles/cross-border-workers-covid-19-agreements-extended-until-at-least-31-march-2022-n20159/. Accessed 3 January 2022.
Bettel, Xavier. “State of the Nation 2021” (12 October 2021). https://gouvernement.lu/en/gouvernement/xavier-bettel/actualites.gouvernement%2Ben%2Bactualites%2Btoutes_actualites%2Bdiscours%2B2021%2B10-octobre%2B12-etat-de-la-nation.html. Accessed 3 January 2022.
“Luxembourg - Südspidol hospital project.” RTL Today (17 September 2021). https://today.rtl.lu/news/luxembourg/a/1788041.html. Accessed 3 January 2022.
“Rapport annuel 2020.” Centre Commun de la Sécurité Sociale. (September 2021). https://ccss.public.lu/fr/actualites/2021/07/15.html. Accessed 3 January 2022.
“Rapport d’activité du Ministère de la Santé 2020” (August 2021). https://sante.public.lu/fr/publications/r/rapport-activite-ministere-sante-2020/index.html. Accessed 3 January 2022.
“Luxembourg Considers Introducing Nursing Degree in response to Labor Shortage.” (8 January 2021). Chronicle.lu. https://chronicle.lu/category/medical/35164-luxembourg-considers-introducing-nursing-degree-in-response-to-labor-shortage. Accessed 3 January 2022.
“Stability and Growth Programme of the Grand Duchy of Luxembourg 2021 > 2025”/De Stabilitéits-Programm.”
The Government of the Grand Duchy of Luxembourg. Ministry of Finance. https://ec.europa.eu/info/sites/default/files/2021-luxembourg-stability-programm e_en.pdf. Accessed 03 Jan.2021.
“National Plan for a Green, Digital and Inclusive Transition. National Reform Programme of the Grand Duchy of Luxembourg under the European semester 2021.” The Government of the Grand Duchy of Luxembourg. https://ec.europa.eu/info/sites/default/files/2021-european-semester-national-re form-programme-luxembourg_en.pdf. Accessed 03 Jan.2022.
“State of Health in the EU. Luxembourg: Country Health Profile 2019.” OECD & the European Observatory on Health Systems and Policies & European Union. (2020). https://ec.europa.eu/health/sites/default/files/state/docs/2019_chp_lu_english.pdf. Accessed 3 January 2022.
Graph View
To what extent do family support policies enable women to combine parenting with participation in the labor market?
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9
9
Family support policies effectively enable women to combine parenting with employment.
8
7
6
7
6
Family support policies provide some support for women who want to combine parenting and employment.
5
4
3
4
3
Family support policies provide only few opportunities for women who want to combine parenting and employment.
2
1
1
Family support policies force most women to opt for either parenting or employment.
In Luxembourg, an automatic wage and salary adjustment to consumer prices used to be applied also to pensions and other social transfers. Nevertheless, since 2006 family benefits had been excluded from this mechanism.
The governmental coalition program of 2018 reintroduced regular adjustment of child benefits in line with consumer prices, which is implemented from January 2022 onwards. Through the Children’s Future Fund (Caisse pour l’Avenir des Enfants - CAE - Zukunftskeess), which is a public institution under the Ministry for Family Affairs, Integration and the Greater Region, are granted benefits to parents and children, including family allowance, the back-to-school allowance (allocation de rentrée scolaire), the childbirth allowance, the special supplementary allowance, the parental leave. Early childhood education and care (ECEC) free of charge are made available for low-income households, via child, care vouchers, including free access to crèches for up to 20 hours a week during school terms (46 weeks).
From January 2020, the government increased also the “High-cost-of-living” allowance (Allocation de vie chère [AVC]), which is allotted to low-income households to compensate for high subsistence costs (e.g., energy costs). This subsidy of €1,452/year (for a single person) is increased by €363 for every additional person in the household (with an upper limit of €2,904/year). Due to the coronavirus crisis, the AVC has been doubled only for the year 2020, with a further increase from 1 January 2022 onwards (by €200 for a single person, augmented by €50 for every additional person in the household).
New policies have emerged in the housing sector, especially since rents and prices have been rising dramatically for many years (14.5% in 2020 alone). Thus, alongside the “Housing Pact 2.0” (Pacte logement 2.0) in force since July 2021, the government has announced the construction of 8,200 additional housing units by public developers, by 2025. Indirect help is also offered, such as subsidized mortgage interest rates, with this depending on the number of children at home.
By international comparison, Luxembourg’s tax policy is family-friendly. Women’s labor market participation has considerably increased since the launch of the European Employment Strategy. At the same time, the childcare facilities system facilitates women’s active life. However, despite a strong increase in recent years, the workforce participation rate among women from 15 to 64 years remains relatively low at 64 % (2020), compared to an EU average of 67.2%, but is higher than OECD average (59.6%).
Luxembourg offers the highest level of child benefits within the European Union, and is one of the four leading EU member states in terms of family benefits overall. It has made sustainable improvements in terms of family-friendly workplace arrangements, while the gender-based job segmentation and gender pay gap have decreased. In 2020, the country ranks 10th in the EU on the Gender Equality Index (with a score 2.4 points above the EU’s score).
Citations:
“Récapitulatif: Les nouveaux paramètres sociaux en janvier 2022.” PaperJam (4 January 2022). https://paperjam.lu/article/nouveaux-parametres-sociaux-en. Accessed 14 January 2022.
“De Budget 2022.” Luxembourg’s Stat Budget 2022 official website. The Government of the Grand Duchy of Luxembourg. https://budget.public.lu/lb.html. Accessed 3 January 2022.
“Nouveautés 2022.” Le Gouvernement du Grand-Duché de Luxembourg (30 December 2021). https://paperjam.lu/article/nouveaux-parametres-sociaux-en. Accessed 14 January 2022.
“Rapport d’activité 2020 du ministère de la Famille, de l’Intégration et à la Grande Région” (6 June 2021). https://mfamigr.gouvernement.lu/en/publications.gouvernement%2Ben%2Bpublications%2Brapport-activite%2Bminist-famille-integration-grande-region%2Bmfamigr%2B2020-rapport-activite-mfamigr.html. Accessed 14 January 2022.
“Children, young people & families.” Caritas Luxembourg. https://www.caritas.lu/en/children-young-people-families/services. Accessed 14 January 2022.
“Employment and unemployment rate, by sex and age group, quarterly data (2007-2020).” OECD Statistics. https://stats.oecd.org/index.aspx?queryid=54744. Accessed 14 January 2022.
“Study to support the evaluation of the EU Strategic Framework on health and safety at work 2014-2020.” European Commission (2021). https://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8413&furtherPubs=yes. Accessed 14 January 2022.
“Women in Work Index 2021. The impact of Covid-19 on women in work “. https://www.strategyand.pwc.com/de/en/functions/organisational-strategy/women-in-work.html. Accessed 14 January 2022.
The governmental coalition program of 2018 reintroduced regular adjustment of child benefits in line with consumer prices, which is implemented from January 2022 onwards. Through the Children’s Future Fund (Caisse pour l’Avenir des Enfants - CAE - Zukunftskeess), which is a public institution under the Ministry for Family Affairs, Integration and the Greater Region, are granted benefits to parents and children, including family allowance, the back-to-school allowance (allocation de rentrée scolaire), the childbirth allowance, the special supplementary allowance, the parental leave. Early childhood education and care (ECEC) free of charge are made available for low-income households, via child, care vouchers, including free access to crèches for up to 20 hours a week during school terms (46 weeks).
From January 2020, the government increased also the “High-cost-of-living” allowance (Allocation de vie chère [AVC]), which is allotted to low-income households to compensate for high subsistence costs (e.g., energy costs). This subsidy of €1,452/year (for a single person) is increased by €363 for every additional person in the household (with an upper limit of €2,904/year). Due to the coronavirus crisis, the AVC has been doubled only for the year 2020, with a further increase from 1 January 2022 onwards (by €200 for a single person, augmented by €50 for every additional person in the household).
New policies have emerged in the housing sector, especially since rents and prices have been rising dramatically for many years (14.5% in 2020 alone). Thus, alongside the “Housing Pact 2.0” (Pacte logement 2.0) in force since July 2021, the government has announced the construction of 8,200 additional housing units by public developers, by 2025. Indirect help is also offered, such as subsidized mortgage interest rates, with this depending on the number of children at home.
By international comparison, Luxembourg’s tax policy is family-friendly. Women’s labor market participation has considerably increased since the launch of the European Employment Strategy. At the same time, the childcare facilities system facilitates women’s active life. However, despite a strong increase in recent years, the workforce participation rate among women from 15 to 64 years remains relatively low at 64 % (2020), compared to an EU average of 67.2%, but is higher than OECD average (59.6%).
Luxembourg offers the highest level of child benefits within the European Union, and is one of the four leading EU member states in terms of family benefits overall. It has made sustainable improvements in terms of family-friendly workplace arrangements, while the gender-based job segmentation and gender pay gap have decreased. In 2020, the country ranks 10th in the EU on the Gender Equality Index (with a score 2.4 points above the EU’s score).
Citations:
“Récapitulatif: Les nouveaux paramètres sociaux en janvier 2022.” PaperJam (4 January 2022). https://paperjam.lu/article/nouveaux-parametres-sociaux-en. Accessed 14 January 2022.
“De Budget 2022.” Luxembourg’s Stat Budget 2022 official website. The Government of the Grand Duchy of Luxembourg. https://budget.public.lu/lb.html. Accessed 3 January 2022.
“Nouveautés 2022.” Le Gouvernement du Grand-Duché de Luxembourg (30 December 2021). https://paperjam.lu/article/nouveaux-parametres-sociaux-en. Accessed 14 January 2022.
“Rapport d’activité 2020 du ministère de la Famille, de l’Intégration et à la Grande Région” (6 June 2021). https://mfamigr.gouvernement.lu/en/publications.gouvernement%2Ben%2Bpublications%2Brapport-activite%2Bminist-famille-integration-grande-region%2Bmfamigr%2B2020-rapport-activite-mfamigr.html. Accessed 14 January 2022.
“Children, young people & families.” Caritas Luxembourg. https://www.caritas.lu/en/children-young-people-families/services. Accessed 14 January 2022.
“Employment and unemployment rate, by sex and age group, quarterly data (2007-2020).” OECD Statistics. https://stats.oecd.org/index.aspx?queryid=54744. Accessed 14 January 2022.
“Study to support the evaluation of the EU Strategic Framework on health and safety at work 2014-2020.” European Commission (2021). https://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8413&furtherPubs=yes. Accessed 14 January 2022.
“Women in Work Index 2021. The impact of Covid-19 on women in work “. https://www.strategyand.pwc.com/de/en/functions/organisational-strategy/women-in-work.html. Accessed 14 January 2022.
Graph View
To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?
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9
9
Pension policy achieves the objectives fully.
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7
6
7
6
Pension policy achieves the objectives largely.
5
4
3
4
3
Pension policy achieves the objectives partly.
2
1
1
Pension policy does not achieve the objectives at all.
In Luxembourg there are three types of pension – a public state pension, a company pension and a personal pension. The statutory pension scheme also includes public health insurance and long-term care insurance. Other state pension entitlements include the survivors’ pension (which applies in the event of the death of a spouse or legal partner), the child-raising pension and the disability pension (for people under the age of 65 who are unable to work). Cross-border workers are eligible for all aspects of the pension system.
A full pension is possible only if you have contributed for 480 months (meaning 40 years). The retirement age is 65 (both for men and women), but an early retirement system also exists, for those between 57 and 60 (in such cases, payment into the compulsory insurance system of at least 120 months is required). For beneficiaries of an old-age pension affiliated with the National Health Fund (Caisse Nationale de Santé) (CNS), contributions are borne equally by the insured and the National Pension and Insurance Fund (Caisse Nationale d’Assurance Pension) (CNAP).
Luxembourg’s pension plans offer one of the highest replacement rates within the OECD, and provide a high living standard for the elderly (maximum monthly pension cannot exceed €8,525.50 in 2020).
One-third of retirees received a full pension (on average of €3,900), and two-thirds received a partial pension (on average of €1,250), in most cases combined with other amounts (deriving from another provision or from working in another country). Due to the annual indexation, pensions were adjusted upward by 1.3% on 1 January 2021 (following a +1.5% increase in 2020). However, pensioners must contribute financially to the healthcare insurance system, and pension benefits are fully taxed.
The coronavirus crisis made it clear that Luxembourg’s social security system has long-term sustainability problems, given that it is facing growing pressure due to an aging population. The OECD and the European Commission have urged the Grand Duchy to reform its pension system by taking steps to increase the retirement age in line with increasing life expectancy, and/or diminish the generosity of pensions. Furthermore, neither the economy’s overall strength nor the rate of increase in the number of contributors to the system over the decades to come can be predicted with certainty. As previously indicated, several international authorities are warning the country against possible slippage in the pension system. However, the social partners and the state have shown little interest in addressing this problem.
Citations:
“Luxembourg’s tax reform encourages private pensions.” ING Luxembourg. https://www.ing.lu/content/siteing/en/Individuals/my-money/categories/savings/luxembourg-s-tax-reform-encourages-private-pensions.html. Accessed 14 January 2022.
«Le premier pilier des pensions doit être fort». Déclaration de Romain Schneider (Ministre de la Sécurité sociale). PapeJam (26 November 2021). https://paperjam.lu/article/premier-pilier-pensions-doit-e. Accessed 14 January 2022.
Rapport annuel 2020.” Centre Commun de la Sécurité Sociale. (September 2021). https://ccss.public.lu/fr/actualites/2021/07/15.html. Accessed 3 January 2022.
“Pensions at a Glance, 2019.” OECD (2020). https://www.oecd-ilibrary.org/docserver/451d8676-en.pdf?expires=1642244638&id=id&accname=guest&checksum=6C25EB9964E96F18EE1F7293ECE4B8F2. Accessed 14 January 2022.
A full pension is possible only if you have contributed for 480 months (meaning 40 years). The retirement age is 65 (both for men and women), but an early retirement system also exists, for those between 57 and 60 (in such cases, payment into the compulsory insurance system of at least 120 months is required). For beneficiaries of an old-age pension affiliated with the National Health Fund (Caisse Nationale de Santé) (CNS), contributions are borne equally by the insured and the National Pension and Insurance Fund (Caisse Nationale d’Assurance Pension) (CNAP).
Luxembourg’s pension plans offer one of the highest replacement rates within the OECD, and provide a high living standard for the elderly (maximum monthly pension cannot exceed €8,525.50 in 2020).
One-third of retirees received a full pension (on average of €3,900), and two-thirds received a partial pension (on average of €1,250), in most cases combined with other amounts (deriving from another provision or from working in another country). Due to the annual indexation, pensions were adjusted upward by 1.3% on 1 January 2021 (following a +1.5% increase in 2020). However, pensioners must contribute financially to the healthcare insurance system, and pension benefits are fully taxed.
The coronavirus crisis made it clear that Luxembourg’s social security system has long-term sustainability problems, given that it is facing growing pressure due to an aging population. The OECD and the European Commission have urged the Grand Duchy to reform its pension system by taking steps to increase the retirement age in line with increasing life expectancy, and/or diminish the generosity of pensions. Furthermore, neither the economy’s overall strength nor the rate of increase in the number of contributors to the system over the decades to come can be predicted with certainty. As previously indicated, several international authorities are warning the country against possible slippage in the pension system. However, the social partners and the state have shown little interest in addressing this problem.
Citations:
“Luxembourg’s tax reform encourages private pensions.” ING Luxembourg. https://www.ing.lu/content/siteing/en/Individuals/my-money/categories/savings/luxembourg-s-tax-reform-encourages-private-pensions.html. Accessed 14 January 2022.
«Le premier pilier des pensions doit être fort». Déclaration de Romain Schneider (Ministre de la Sécurité sociale). PapeJam (26 November 2021). https://paperjam.lu/article/premier-pilier-pensions-doit-e. Accessed 14 January 2022.
Rapport annuel 2020.” Centre Commun de la Sécurité Sociale. (September 2021). https://ccss.public.lu/fr/actualites/2021/07/15.html. Accessed 3 January 2022.
“Pensions at a Glance, 2019.” OECD (2020). https://www.oecd-ilibrary.org/docserver/451d8676-en.pdf?expires=1642244638&id=id&accname=guest&checksum=6C25EB9964E96F18EE1F7293ECE4B8F2. Accessed 14 January 2022.
Graph View
How effectively do policies support the integration of migrants into society?
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9
9
Cultural, education and social policies effectively support the integration of migrants into society.
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7
6
7
6
Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
5
4
3
4
3
Cultural, education and social policies do not focus on integrating migrants into society.
2
1
1
Cultural, education and social policies segregate migrant communities from the majority society.
Luxembourg’s migrant population has grown continuously since the Second World War. Nowadays, around 85% of migrants are citizens of the European Union, with 90% of resident migrants being of European descent. Most other highly qualified migrants have come either from Russia, Canada or the United States. On 1 January 2021, 47.2% of the total population were foreigners, and 81.6% of this group were EU citizens. The top five most represented nationalities are the Portuguese (38.6%), the French (19.8%), the Belgians (8.2%), the Germans (5.2%) and the Spanish (3.2%). Among third-country nationals, the most common countries of origin are the United Kingdom, China and Montenegro. It is estimated that more than half of Luxembourg’s citizens currently have a migrant background, and that 10% of them have roots in a non-EU nation.
In 2020, of the 11,904 new residence permits issued, approximately 30% were for family reasons, about 25% for were work purposes and 16% were for international protection. Among the population receiving protection, 29.9% came from Syria, 21.6% from Eritrea, and 7.9% from Afghanistan.
In Luxembourg, the state, municipalities and civil society work together to help foreigners integrate, under the coordination of the Ministry of Family Affairs, Integration and the Greater Region. The National Council for Foreigners, an institutional consultative body, represents foreigners in Luxembourg. The two main civil society organizations representing migrants’ interests are the Association de Soutien aux Travailleurs Immigrés (ASTI), and the Liaison and Action Committee for Foreigners (CLAE). In early 2021, the government launched a study on racism, and two other studies have also been launched by the EU’s Asylum, Migration and Integration Fund (AMIF) national program.
Foreign children are fully integrated in local elementary schools or high schools. Mediators assist foreign parents and students in their dealings with the education system. Pupils who have not mastered Luxembourgish or German when entering elementary school can take advantage of a certain number of linguistic tutoring hours. Several structures have been set up to welcome and guide new arrivals aged 12 to 24 in Luxembourg. Children between 12 and 15 are given the opportunity to attend special classes called “classes d’insertion” in the capital’s Lycée Technique du Centre, with special programs in French or German, designed to facilitate integration into regular classes. English-speaking and “international” classes also exist within the public school system, as well as technical and professional education classes. Despite this, the average school dropout rate for children of foreign parents is high. To enable migrant employees to learn Luxembourgish, a 200-hour training leave is allowed.
All foreigners, whether they are citizens of the EU or third countries, can vote and run for office in local elections, provided they fulfill certain residency requirements and are registered on the electoral list. Conditions for registration have been eased over recent years. However, meetings of local councils are usually held in Luxembourgish (with reports written in German, French or English), which poses an obstacle for many resident foreign citizens.
The Migrant Integration Policy Index 2020 points out that the Grand Duchy’s integration policies shifted from halfway favorable (54/100) to slightly favorable (64/100) for societal integration (above-average for the EU and for Western Europe).
The many cross-border workers in Luxembourg are not taken into account within the CNE (Conseil national pour étrangers, or National Council for Foreigners). However, the creation of a commission specifically dedicated to cross-border workers has very recently been discussed.
Citations:
Grand Duchy of Luxembourg Statistics Portal. https://statistiques.public.lu/en/. Accessed 3 January 2022.
“Main d’œuvre étrangère qualifiée au Luxembourg : le rôle de la politique d’immigration.” Fondatio Idea (2 December 2021). https://www.fondation-idea.lu/2021/12/02/main-doeuvre-etrangere-qualifiee-au-luxembourg-le-role-de-la-politique-dimmigration/. Accessed 3 January 2022.
“Données en matière d’asile et protection internationale.” Le Gouvernement du Grand-Duché de Luxembourg. Ministère des Affaires étrangères et européennes. https://maee.gouvernement.lu/fr/directions-du-ministere/immigration/stats-et-publications.html. Accessed 3 January 2022.
“Luxembourg in figures 2021” (16.09.2021). https://statistiques.public.lu/en/publications/series/lux-figures/2021/lux-figur es/index.html. Accessed 3 January 2022.
“Governance of migrant integration in Luxembourg, 2020.” European Commission (2021). https://ec.europa.eu/migrant-integration/country-governance/governance/luxembourg_en. Accessed 3 January 2022.
“Measuring policies to integrate migrants across six continents.” The Migrant Integration Policy Index 2020. https://www.mipex.eu/key-findings. Accessed 3 January 2022.
In 2020, of the 11,904 new residence permits issued, approximately 30% were for family reasons, about 25% for were work purposes and 16% were for international protection. Among the population receiving protection, 29.9% came from Syria, 21.6% from Eritrea, and 7.9% from Afghanistan.
In Luxembourg, the state, municipalities and civil society work together to help foreigners integrate, under the coordination of the Ministry of Family Affairs, Integration and the Greater Region. The National Council for Foreigners, an institutional consultative body, represents foreigners in Luxembourg. The two main civil society organizations representing migrants’ interests are the Association de Soutien aux Travailleurs Immigrés (ASTI), and the Liaison and Action Committee for Foreigners (CLAE). In early 2021, the government launched a study on racism, and two other studies have also been launched by the EU’s Asylum, Migration and Integration Fund (AMIF) national program.
Foreign children are fully integrated in local elementary schools or high schools. Mediators assist foreign parents and students in their dealings with the education system. Pupils who have not mastered Luxembourgish or German when entering elementary school can take advantage of a certain number of linguistic tutoring hours. Several structures have been set up to welcome and guide new arrivals aged 12 to 24 in Luxembourg. Children between 12 and 15 are given the opportunity to attend special classes called “classes d’insertion” in the capital’s Lycée Technique du Centre, with special programs in French or German, designed to facilitate integration into regular classes. English-speaking and “international” classes also exist within the public school system, as well as technical and professional education classes. Despite this, the average school dropout rate for children of foreign parents is high. To enable migrant employees to learn Luxembourgish, a 200-hour training leave is allowed.
All foreigners, whether they are citizens of the EU or third countries, can vote and run for office in local elections, provided they fulfill certain residency requirements and are registered on the electoral list. Conditions for registration have been eased over recent years. However, meetings of local councils are usually held in Luxembourgish (with reports written in German, French or English), which poses an obstacle for many resident foreign citizens.
The Migrant Integration Policy Index 2020 points out that the Grand Duchy’s integration policies shifted from halfway favorable (54/100) to slightly favorable (64/100) for societal integration (above-average for the EU and for Western Europe).
The many cross-border workers in Luxembourg are not taken into account within the CNE (Conseil national pour étrangers, or National Council for Foreigners). However, the creation of a commission specifically dedicated to cross-border workers has very recently been discussed.
Citations:
Grand Duchy of Luxembourg Statistics Portal. https://statistiques.public.lu/en/. Accessed 3 January 2022.
“Main d’œuvre étrangère qualifiée au Luxembourg : le rôle de la politique d’immigration.” Fondatio Idea (2 December 2021). https://www.fondation-idea.lu/2021/12/02/main-doeuvre-etrangere-qualifiee-au-luxembourg-le-role-de-la-politique-dimmigration/. Accessed 3 January 2022.
“Données en matière d’asile et protection internationale.” Le Gouvernement du Grand-Duché de Luxembourg. Ministère des Affaires étrangères et européennes. https://maee.gouvernement.lu/fr/directions-du-ministere/immigration/stats-et-publications.html. Accessed 3 January 2022.
“Luxembourg in figures 2021” (16.09.2021). https://statistiques.public.lu/en/publications/series/lux-figures/2021/lux-figur es/index.html. Accessed 3 January 2022.
“Governance of migrant integration in Luxembourg, 2020.” European Commission (2021). https://ec.europa.eu/migrant-integration/country-governance/governance/luxembourg_en. Accessed 3 January 2022.
“Measuring policies to integrate migrants across six continents.” The Migrant Integration Policy Index 2020. https://www.mipex.eu/key-findings. Accessed 3 January 2022.
Graph View
How effectively does internal security policy protect citizens against security risks?
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9
9
Internal security policy protects citizens against security risks very effectively.
8
7
6
7
6
Internal security policy protects citizens against security risks more or less effectively.
5
4
3
4
3
Internal security policy does not effectively protect citizens against security risks.
2
1
1
Internal security policy exacerbates the security risks.
In Mercer’s 2019 Quality of Living, Luxembourg City was ranked as the safest city in the world in terms of personal security, ahead of Helsinki and the Swiss cities of Basel, Bern and Zurich. In this context, several factors were analyzed: crime rates, law enforcement, security forces, the limits of individual freedom, international relations and press freedom. However, the situation has worsened over the last two years.
According to the 2021 police report, the overall number of crimes in Luxembourg increased by 4% over a year. In 2019, the police recorded 38,800 offenses, the majority of which were crimes against property. The number of crimes against persons increased by 8.9%. Drug-related cases increased substantially. This was particularly true of possession (+35% in 2019), drug use (+51%), and drug trafficking (+21%) offenses. The number of drug seizures carried out in cooperation with the Customs and Excise Agency rose to 1,412 in 2019. Security issues in the neighborhood of Luxembourg’s central railway station (drug, prostitution, general infractions) remain a recurrent problem. The Luxembourg police force aims to recruit more personnel, but faces recruitment difficulties. However, in recent years, a reorganization of the police force has had positive effects.
Citations:
“Luxembourg City wins 2022 Access City Award for becoming more accessible to persons with disabilities.” European Union (December 2021). https://ec.europa.eu/social/main.jsp?catId=1141. Accessed 3 January 2022.
“Climate Change Perfomance Index, 2022” (2022). https://ccpi.org/country/lux/. Accessed 3 January 2022.
“Luxembourg in figures 2021” (16.09.2021). https://statistiques.public.lu/en/publications/series/lux-figures/2021/lux-figur es/index.html. Accessed 3 January 2022.
“OECD Better Life Index 2021.” OECD. https://www.oecdbetterlifeindex.org/#/11111111111. Accessed 3 January 2022.
“Freedom House. Countries and Territories, 2021.” (2022). https://freedomhouse.org/countries/freedom-world/scores. Accessed 3 January 2022.
“World Happiness Report 2021.” https://worldhappiness.report/. Accessed 3 January 2022. Accessed 3 January 2022.
“Rapport d’activités, 2020.” Police grand-ducale (26 October 2021). https://police.public.lu/en/publications/2021/rapport-activite-2020-police-grand-ducale.html. Accessed 3 January 2022.
«La situation du quartier Gare est très préoccupante». Luxemburger Wort (6 September 2021). https://www.wort.lu/fr/luxembourg/la-situation-du-quartier-gare-est-tres-preoccupante-61365640de135b9236e63c1f. Accessed 3 January 2022.
“Fewer burglaries but more offences last year.” RTL today (27 March 2021). https://today.rtl.lu/news/luxembourg/a/1696050.html. Accessed 3 January 2022.
“Corruption Perceptions Index, 2020.” Transparency International. https://www.transparency.org/en/cpi/2020/index/nzl. Accessed 3 January 2022.
According to the 2021 police report, the overall number of crimes in Luxembourg increased by 4% over a year. In 2019, the police recorded 38,800 offenses, the majority of which were crimes against property. The number of crimes against persons increased by 8.9%. Drug-related cases increased substantially. This was particularly true of possession (+35% in 2019), drug use (+51%), and drug trafficking (+21%) offenses. The number of drug seizures carried out in cooperation with the Customs and Excise Agency rose to 1,412 in 2019. Security issues in the neighborhood of Luxembourg’s central railway station (drug, prostitution, general infractions) remain a recurrent problem. The Luxembourg police force aims to recruit more personnel, but faces recruitment difficulties. However, in recent years, a reorganization of the police force has had positive effects.
Citations:
“Luxembourg City wins 2022 Access City Award for becoming more accessible to persons with disabilities.” European Union (December 2021). https://ec.europa.eu/social/main.jsp?catId=1141. Accessed 3 January 2022.
“Climate Change Perfomance Index, 2022” (2022). https://ccpi.org/country/lux/. Accessed 3 January 2022.
“Luxembourg in figures 2021” (16.09.2021). https://statistiques.public.lu/en/publications/series/lux-figures/2021/lux-figur es/index.html. Accessed 3 January 2022.
“OECD Better Life Index 2021.” OECD. https://www.oecdbetterlifeindex.org/#/11111111111. Accessed 3 January 2022.
“Freedom House. Countries and Territories, 2021.” (2022). https://freedomhouse.org/countries/freedom-world/scores. Accessed 3 January 2022.
“World Happiness Report 2021.” https://worldhappiness.report/. Accessed 3 January 2022. Accessed 3 January 2022.
“Rapport d’activités, 2020.” Police grand-ducale (26 October 2021). https://police.public.lu/en/publications/2021/rapport-activite-2020-police-grand-ducale.html. Accessed 3 January 2022.
«La situation du quartier Gare est très préoccupante». Luxemburger Wort (6 September 2021). https://www.wort.lu/fr/luxembourg/la-situation-du-quartier-gare-est-tres-preoccupante-61365640de135b9236e63c1f. Accessed 3 January 2022.
“Fewer burglaries but more offences last year.” RTL today (27 March 2021). https://today.rtl.lu/news/luxembourg/a/1696050.html. Accessed 3 January 2022.
“Corruption Perceptions Index, 2020.” Transparency International. https://www.transparency.org/en/cpi/2020/index/nzl. Accessed 3 January 2022.
Graph View
To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?
10
9
9
The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
8
7
6
7
6
The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
5
4
3
4
3
The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
2
1
1
The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
Luxembourg’s development cooperation strategy is titled The Road to 2030, and has four areas of focus: 1) access to quality social services; 2) socioeconomic integration of women and youth; 3) inclusive and sustainable growth; and 4) inclusive governance. The strategy also aims to leverage Luxembourg’s comparative advantage as a leading international financial center and in the information and communication technology sector. The development cooperation program is focused on seven partner countries, five of which are in sub-Saharan Africa.
According to the 2021 OECD Cooperation Report, the Grand Duchy’s contribution to official international development assistance amounted to $450 million in 2020, or 1.02% of its gross national income (GNI), and ranked third among the member countries of the OECD’s Development Assistance Committee. Despite a decrease of 9.2% in real terms in volume in 2020 (due to the drop in the gross national income due to the coronavirus pandemic), the development assistance provided by the Grand Duchy has far surpassed the UN’s industrialized-nation contribution target of 0.7% of GNI. In line with the EU and OECD priorities, Luxembourg’s major areas of involvement are social sectors (including education and training in the fields of healthcare), water treatment, sewage, local economic development and infrastructure construction, and humanitarian support (including emergency assistance and reconstruction aid).
In 2019, Luxembourg provided $216.5 million in development aid to the multilateral system (a drop of 1.1% from 2018), $109.6 million of which was allocated to core multilateral activities (through pooled funds and specific-purpose programs and funds). Furthermore, Luxembourg’s total contribution to multilateral organizations in 2019 was mainly allocated to the U.N., the World Bank Group and the European Union institutions, which accounted together for 83% of the country’s total support to the multilateral system. The U.N. system received 49.3%, mainly through earmarked contributions devoted to the U.N. Development Program ($16.4 million), the U.N. Children’s Fund ($12.1 million) and the World Food Program ($11.3 million).
Citations:
“Shaping a Just Digital Transformation. OECD Development Cooperation Report 2021.” OECD (21 December 2021). https://www.oecd.org/dac/development-cooperation-report-20747721.htm. Accessed 3 January 2022.
“The Road to 2030. Luxembourg’s General Development Cooperation Strategy.” The Ministry of Foreign and European Affairs (2021). https://cooperation.gouvernement.lu/dam-assets/politique-cooperation-action-humanitaire/documents-de-reference/strat%C3%A9gie/Strat%C3%A9gie-MAEE-EN.pdf. Accessed 3 January 2022.
“De Budget 2021. Coopération au développement et à l’action humanitaire.” Le Gouvernement du Grand-Duché de Luxembourg. Ministère des Affaires étrangères et européennes. https://budget.public.lu/lb/budget2021/am-detail.html?chpt=depenses&dept=1§=17. Accessed 3 January 2022.
According to the 2021 OECD Cooperation Report, the Grand Duchy’s contribution to official international development assistance amounted to $450 million in 2020, or 1.02% of its gross national income (GNI), and ranked third among the member countries of the OECD’s Development Assistance Committee. Despite a decrease of 9.2% in real terms in volume in 2020 (due to the drop in the gross national income due to the coronavirus pandemic), the development assistance provided by the Grand Duchy has far surpassed the UN’s industrialized-nation contribution target of 0.7% of GNI. In line with the EU and OECD priorities, Luxembourg’s major areas of involvement are social sectors (including education and training in the fields of healthcare), water treatment, sewage, local economic development and infrastructure construction, and humanitarian support (including emergency assistance and reconstruction aid).
In 2019, Luxembourg provided $216.5 million in development aid to the multilateral system (a drop of 1.1% from 2018), $109.6 million of which was allocated to core multilateral activities (through pooled funds and specific-purpose programs and funds). Furthermore, Luxembourg’s total contribution to multilateral organizations in 2019 was mainly allocated to the U.N., the World Bank Group and the European Union institutions, which accounted together for 83% of the country’s total support to the multilateral system. The U.N. system received 49.3%, mainly through earmarked contributions devoted to the U.N. Development Program ($16.4 million), the U.N. Children’s Fund ($12.1 million) and the World Food Program ($11.3 million).
Citations:
“Shaping a Just Digital Transformation. OECD Development Cooperation Report 2021.” OECD (21 December 2021). https://www.oecd.org/dac/development-cooperation-report-20747721.htm. Accessed 3 January 2022.
“The Road to 2030. Luxembourg’s General Development Cooperation Strategy.” The Ministry of Foreign and European Affairs (2021). https://cooperation.gouvernement.lu/dam-assets/politique-cooperation-action-humanitaire/documents-de-reference/strat%C3%A9gie/Strat%C3%A9gie-MAEE-EN.pdf. Accessed 3 January 2022.
“De Budget 2021. Coopération au développement et à l’action humanitaire.” Le Gouvernement du Grand-Duché de Luxembourg. Ministère des Affaires étrangères et européennes. https://budget.public.lu/lb/budget2021/am-detail.html?chpt=depenses&dept=1§=17. Accessed 3 January 2022.