Luxembourg’s public debt is expected to continue to increase over the next three years. This is what the Court of Auditors underlines this Monday, in its general report on the bill regulating the general account of the State for the 2023 financial year. The public debt should thus reach 26.6 billion euros or 27.3% of GDP at the end of 2027 (compared to 22.2 billion euros or 26.5% of GDP in 2024), according to Statec forecasts. The consolidated public debt mainly consists of the debt of the central administration and that of local administrations. Social security for its part is “structurally surplus” (see table in the slideshow).
The Court of Auditors recalls that the economic stabilization measures taken during the tripartite meetings and the “Energiedësch” to combat the explosion in energy prices as well as the measures taken in the context of the housing crisis, “ weigh considerably” on public finances.
To this end, in order to “reinforce the resilience” of public finances, the Court considers that the government should reserve the use of debt for the financing of “future-oriented” investments, promoting in particular the energy, socio-economic and social transition. environmental and digital aspects of our economy.
“Given that the risk of new health, ecological or financial crises in the coming years, or even decades, is real, we must already think about developing a medium-term strategy to escape the spiral of public debt, in order to be able to react to a future crisis,” adds the Institution.
Remember that the state coffers were full this year. The CSV Minister of Finance judges that “the government’s policy is starting to be felt”. According to him, “the country is returning to growth”. Opposition deputies like Franz Fayot (LSAP) and Sam Tanson (Déi Greng) however express concerns about controlling the long-term public debt.
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