Luxembourg: unions and government agree 2015 budget and multi-annual programming law

After much disagreement between the unions and government over the 2015 budget and budget plans for the next three years an agreement was finally forthcoming on November 28. Compared with the initial stringent budget proposals put forward by the government in October, this agreement reflects government concessions in the areas of unemployment compensation, early retirement, and social security services. Agreement came barely a week after the Luxembourg unions met to put pressure on the government notably with the threat of nationwide action.
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Government projects roundly criticized by the unions. The government’s package of budget measures for 2015 and plans for years 2016 though 2018 that it announced in October aimed at making savings of more than €1 million in 2018. Denounced as “socially unbalanced” and putting the health of the economy in jeopardy, the unions blamed the government that came into power last year for exaggerating the negatives in the country’s economic and budget situation as a pretext for pushing though rises in employee social contributions and making cuts in the social budget.

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