Luxembourg

   

Social Policies

#5
Key Findings
With a generous social safety net, Luxembourg falls into the top ranks internationally (rank 5) for its social policies. Its score on this measure remains unchanged relative to 2014.

Education spending is high, but gender gaps are significant, and children of migrants have a harder time reaching university. Many students repeat years, delaying workforce entry. The welfare system is comprehensive, guaranteeing a minimum income, with only a modest poverty risk after transfers.

Child-care services have been expanded, and child benefits increased. Women’s labor-market participation rate is relatively low but rising. The health care system, based on contributions from employees, employers and the state, is generally of high quality. Costs are high, but out-of-pocket expenses very low.

Pension benefits are high, but further reforms are needed to ensure sustainability. With many immigrants, the country has focused strongly on integration, with mixed success. The crime rate has risen in recent years.

Education

#29

To what extent does education policy deliver high-quality, equitable and efficient education and training?

10
 9

Education policy fully achieves the criteria.
 8
 7
 6


Education policy largely achieves the criteria.
 5
 4
 3


Education policy partially achieves the criteria.
 2
 1

Education policy does not achieve the criteria at all.
Education Policy
5
The country’s education policy must deal with the challenges of a multilingual society and a high proportion of migrant students (about 50%). The education system is particularly marked by its insistence on early selection: after six years of primary school, students face a crucial junction and must choose one of two academic tracks, general or technical. There is a marked division between Luxembourg nationals and migrant students, as generally migrants (especially the Portuguese minority) struggle with languages and are more often tracked to the technical level (secondaire technique), which affects their progress toward a university education. Recent studies have shown that migrants are four times less likely to transfer to the higher-level, university-oriented school track (enseignement secondaire) than are Luxembourgish nationals. To avoid this, often more affluent migrants will send their children to a reputable international school. This leads to yet another division between higher-income and lower-income migrants.

According to OECD data (Education at a Glance 2014), Luxembourg has the OECD’s highest level of expenditure per student by educational institutions (more than $23,000 at the primary level and more than $16,000 at the secondary level), and the smallest average class size (16 students). In addition, between 2008 and 2012, average salaries for primary-education teachers increased dramatically, by 40.8%. This is mostly due to the fact that the 2009 law reforming basic education introduced an increase in teachers’ salaries. In 2009, the government introduced primary-school reforms, including a new competence-based curriculum, performance monitoring and a tutorial system. Secondary-school teachers were required to teach 15% more hours in 2012 as compared to 2005.
However, in the PISA 2012 study, Luxembourg showed the largest gender differences of any country measured. Boys outperformed girls in mathematics (by 25 points) and in natural science (15 points), while girls obtained better results in reading. In mathematics specifically, Luxembourg showed the most pronounced differences between boys and girls among the OECD countries. In Luxembourg some students repeat one or more years of school, leaving school with an average of two years delay. A total of 61% of EST students (Enseignement Secondaire Technique) had to retake at least one school year in 2013 – 2014. The excessive length of studies and the delayed onset of working life are certainly problems that must be urgently addressed. Furthermore, only 20% of young adults complete type A tertiary education degrees before their 30th birthday.
However, students on average are achieving better educational qualifications than in former periods. From 2010 to 2014, the proportion of students going on to tertiary education has increased. The share of people with upper-secondary education (2013: 38.6%) declined to 35.5% in 2014, while the share of those with tertiary education rose to 39.6%. Furthermore, the share of early school or training-program leavers fell during the period under review, leaving Luxembourg in seventh place on this measure within the EU-28. This share fell 6.1% in 2014 (2012: 8.1%). Reforms introduced in recent years on this issue (Second Chance School and new social-assistance programs) are having a strongly positive effect, significantly reducing early school leaving and improving social cohesion.
The Ministry of Education’s first educational report (2015) calls for better transitions between different school types, more education at the preschool and kindergarten levels, additional measures in the form of multidisciplinary teams and strategies for the “No Child Left Behind Act” aimed at realizing students’ educational potentials and promoting inclusive schooling.
A government action plan (Plan d’Encadrement Périscolaire) released during the period under review set new educational goals, mainly through a close collaboration between school and after-school care facilities, including sharing of premises, staff and equipment.
Plans for secondary-school reforms were launched after primary-school reforms, focusing on improving student’s skill bases (socles de compétences) along with more balanced language expectations. Following a year of intensive negotiation and internal debate, the draft bill was introduced to parliament in 2013. Ongoing negotiations with the unions have produced some satisfactory agreement.

The government is engaged on 85 reform projects as a whole. Key items here include a new Luxembourg Center for Educational Testing (LUCET) linked to teacher-training institutes, increases in school autonomy in association with individual institutional development plans, two new institutes for treating learning disabilities and behavior problems, a new center for political education, improvements in connections between kindergarten and primary school, efforts to ease inter-school and post-school transitions, policies making schools and teaching more flexible, an initiative promoting native-language instruction, and the creation of a (free) International School. Despite resistance and lengthy negotiations, there is a strong governmental will for change.

Citations:
http://www.forum.lu/pdf/artikel/7380_316_UNEL.pdf
http://www.cc.lu/uploads/tx_userccpublications/A_T_16_Oct_2014.pdf
http://www.lessentiel.lu/fr/news/luxembourg/story/12031031
http://www.men.public.lu/fr/actualites/communiques-conference-presse/2013/12/03-pisa/index.html
http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00186&plugin=1
http://www.gouvernement.lu/5069738/16-meisch-maintienscolaire?context=3422896
http://www.men.public.lu/fr/actualites/communiques-conference-presse/2014/10/16-besser-zukunftschancen/index.html
http://www.men.public.lu/catalogue-publications/systeme-educatif/statistiques-analyses/couts-et-financements/couts-12/couts-fin-12.pdf
http://www.men.public.lu/catalogue-publications/systeme-educatif/dossiers-presse/2013-2014/131203-pisa.pdf
http://www.men.public.lu/catalogue-publications/secondaire/etudes-internationales/pisa-2012/2012-de.pdf
http://gpseducation.oecd.org/CountryProfile?primaryCountry=LUX&treshold=10&topic=PI
http://www.oecd.org/edu/EAG%202012_e-book_EN_200912.pdf
http://www.oecd.org/edu/Education-at-a-Glance-2014.pdf
http://www.oecd.org/edu/EAG-Interim-report.pdf
http://www.oecdbetterlifeindex.org/countries/luxembourg/
http://www.oecd-ilibrary.org/docserver/download/9810131ec011.pdf?expires=1422976094&id=id&accname=guest&checksum=5D5D1962E8CE11EE6EF9594E24240468
http://www.statistiques.public.lu/fr/publications/thematique/conditions-sociales/enseignement-en-chiffres/enseignement-en-chiffres.pdf
http://www.men.public.lu/catalogue-publications/systeme-educatif/statistiques-analyses/bildungsbericht/2015/band-1.pdf
http://www.legilux.public.lu/ldp/2013/20130081_I.pdf
http://www.wort.lu/fr/luxembourg/decrochage-scolaire-au-luxembourg-chaque-mois-140-eleves-desertent-l-ecole-53749d49b9b398870802620c
http://www.men.public.lu/catalogue-publications/systeme-educatif/statistiques-analyses/bildungsbericht/2015/band-2.pdf
http://zukunft.men.lu/content/location/248
www.zukunft.men.lu
http://www.men.public.lu/catalogue-publications/themes-transversaux/statistiques-analyses/bildungsbericht/2015/band-1.pdf

Social Inclusion

#2

To what extent does social policy prevent exclusion and decoupling from society?

10
 9

Policies very effectively enable societal inclusion and ensure equal opportunities.
 8
 7
 6


For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
 5
 4
 3


For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
 2
 1

Policies exacerbate unequal opportunities and exclusion from society.
Social Inclusion Policy
9
Luxembourg’s welfare system is possibly one of the most substantial and comprehensive in Europe. While other countries in recent years have curtailed welfare benefits, Luxembourg has in contrast expanded its system over the past 30 years. Since 1986, Luxembourg has offered a guaranteed minimum income (revenu minimum garanti, RMG) system to ensure all residents older than 24 (with certain exceptions, such as one-parent families and the disabled) have sufficient income to live (since 2001, this has only included citizens of European Union and European Economic Area states). The number of RMG recipients has remained stable in recent years, with about 4,000 new applications and a total of 9,209 households receiving the benefits. The government began establishing regional social-services (Office Social) offices in 2011, with 30 created by 2013. Since that time, the number of social-aid applications has increased at the local level. The government intends to reform the 1999 RMG law in order to reduce the poverty risk of young adults (under 25 years of age, in a single household).
Thanks to previously sustainable growth rates, Luxembourg ranks as a wealthy welfare state in international comparison, achieving high positions (21) in the 2013 and 2014 U.N. Human Development Index (HDI). However, it remains behind neighbor countries France and Germany in terms of overall HDI ranking. Luxembourg’s international rankings with regard to education and skills, and personal safety are lower than the OECD average, while life expectancy (81 years) is only one year higher than the OECD average.

Luxembourg has a high at-risk-of-poverty rate before social transfers (63.2%) and a relatively modest poverty risk after transfers (19% in 2014). Income inequality (Gini coefficient in 2014: 28.7) is lower than the EU average (31) and lower than in other countries, such as the United Kingdom (31.6), France (29.2) and Germany (30.7). The country’s social assistance services primarily concentrates on large families and single parents. Nevertheless, it is worth emphasizing that the poverty risk for single-parent families in Luxembourg has risen dramatically from 25.2% in 2003 to 46.1% in 2013.
Child-care services up through the 1990s, while available, were not as extensive as they are today. Employment rates among women have risen in recent years. Since the enactment of the EU Employment Strategy, Luxembourg has significantly expanded child-care services, and now offers some of the most generous child benefits within the European Union. Child-care service provisions are also partly financed by the state.
In 1989, Luxembourg adopted a system of care insurance (assurance dépendance) that is considered one of the most generous schemes worldwide. It includes cash benefits and benefits in kind that give priority to caring for the elderly and disabled at home. Institutional care is also provided without requiring out-of-pocket payments. Other allowances provide the necessary means for long-term institutional care.
In 2013, welfare expenditures on social protection totaled 24.4% of GDP (2012: 23.3%). Those who have left school early, have low vocational skill levels, or who work in low-wage sectors (working poor) frequently make use of social assistance. The average unemployment rate among adults with low-level qualifications rose more than 7 percentage points between 2000 and 2013. The OECD notes that 80% of the overall unemployment rate has structural grounds. Rising unemployment rates and higher living costs, mainly associated with housing, resulted in a 40% increase in welfare recipients between 2008 and 2012.
During the past 10 years alone, rental prices have risen by 43%. The government recognizes the problem and is promoting the construction of about 11,000 new housing units to support continuing migration flows and population growth (about 2% last year). This program has a budget of about €600 million from 2010 to 2025. Despite the scarcity of social housing, only 29% of the new housing units are intended for renting and 81% of the stock is for sale to low-income groups. This excludes the working poor and welfare beneficiaries with low credit ratings. Although it has been delayed, a new housing allowance will be introduced in 2016. About 19,000 low-income households would benefit from this subsidy, amounting to a monthly average of €126. This underlines the crucial importance of social housing, especially with regard to providing affordable rentals for low-income people.
The quantity of social housing is still below the European average. Some municipalities have decided to impose a special tax on unoccupied houses in order to create disincentives to leaving spaces empty, and thus encourage existing residential property to be rented or sold. In addition to programs on the local level, the public social-housing companies (Fonds du Logement and SNHBM) are strengthening their activities. The National Housing Fund was recently exposed to criticism following an audit, and is currently being reformed with an eye to establishing effective quality-control measures.

Citations:
http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&plugin=1&pcode=tps00098&language=en
http://ec.europa.eu/eurostat/estat-navtree-portlet-prod/BulkDownloadListing?file=data/hlth_dpe030.tsv.gz
http://www.mfi.public.lu/publications/01_rapports-activite/rapp_act_2014.pdf
http://www.kpmg.com/global/en/issuesandinsights/articlespublications/taxation-international-executives/luxembourg/pages/income-tax.aspx
http://www.legilux.public.lu/ldp/2013/20130028_I.pdf
http://www.oecd.org/statistics/BLI%202014%20Luxembourg%20country%20report.pdf
http://www.ceps.lu/publi_viewer.cfm?tmp=3884
http://www.oecdbetterlifeindex.org/countries/luxembourg/
http://www.snas.etat.lu
http://www.statistiques.public.lu/stat/TableViewer/tableView.aspx?ReportId=2117&IF_Language=fra&MainTheme=3&FldrName=1&RFPath=29
http://stats.oecd.org/Index.aspx?DataSetCode=SOCX_AGG
http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=de&pcode=t2020_10&plugin=
http://www.fondsdulogement.lu
http://snhbm.lu/index.php?p=52

Health

#5

To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?

10
 9

Health care policy achieves the criteria fully.
 8
 7
 6


Health care policy achieves the criteria largely.
 5
 4
 3


Health care policy achieves the criteria partly.
 2
 1

Health care policy does not achieve the criteria at all.
Health Policy
8
Luxembourg’s well-equipped hospitals offer a wide range of services, including high-end, expensive treatments, and waiting lists are rare, except for some services that are highly demanded. Luxembourg also has the highest share of patient transfers to other countries for treatment within the European Union. Due to the country’s small size and the absence of a university hospital, it is not possible to provide every medical specialization. Necessary medical transfers to neighboring countries have the side effect of being beneficial for the finances of the state health-insurance program, as those services are in general less expensive abroad.
Drawbacks to the Luxembourg system include the aforementioned lack of a university hospital and the individual nature of doctor’s contracts and treatment responsibilities. Most resident general practitioners and medical specialists sign contracts with individual hospitals and are responsible only for a certain number of patients (Belegbetten), which prevents any sort of group or collective treatment options. Some hospitals have organized in such a fashion as to keep doctors’ offices “in house” but this has not changed their status as independent actors (Belegarzt).
Luxembourg’s system of health insurance providers has been gradually unified; in January 2009, of the nine – typically corporatist – providers, six were merged into a single national health insurance (Caisse nationale de santé). The remaining three independent schemes are for civil servants, and while they operate independently, they offer the same coverage and tariffs for health care provisions. The overall objective is to end up with a universal system; the system up to now functions with equal contributions from employees and employers, plus an important contribution from the state. The same tariff structures exist for all doctors and patients (including for the three independent insurance programs). Access to treatment under the Luxembourg health care system is limited to contributors (employees, employers and their co-insured family members) only. It excludes newcomers without a work contract or those who do not have another form of voluntary insurance coverage. Applicants for international protection are insured via the competent ministry. Furthermore, Luxembourg’s national insurer offers generous reimbursements; out-of-pocket expenses for patients in Luxembourg are the lowest within the OECD.
However, Luxembourg’s health care system is also considered one of the most expensive within the OECD countries, ranked fourth after Switzerland, Norway and the United States. The reasons for this include the country’s high wages, the high ratio of technical medical equipment to residents and the low out-of-pocket costs for patients. Furthermore, authorities for years have tried to limit general provisions offered by all hospitals, instead offering incentives to limit treatment in specialized centers, for example. Another indicator is average treatment duration. At 7.35 days in 2013, Luxembourg has the highest average length of hospital stay in the European Union.
The introduction of the psychotherapists’ law will improve the provision of health care, but also implies additional charges. While necessary health care reforms have been initiated, most of the details are still far from being implemented. Due to the favorable labor market and sustainable economic growth, the country’s health-insurance funds recorded a net profit of 18% in 2015. Despite these factors, the new government is expected to swiftly implement a comprehensive reform of the health-insurance system (for example, introducing digital patient files, a primary-doctor principle and a performance-oriented fee-per-case system) with the aim of improving long-term budgetary sustainability within the health care and statutory nursing care systems.

Citations:
http://www.gouvernement.lu/3680390/cg.pdf
http://www.legilux.public.lu/leg/a/archives/2008/0060/a060.pdf#page=2
http://www.mss.public.lu/publications/divers/health_glance.pdf
http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do

Families

#12

To what extent do family support policies enable women to combine parenting with participation in the labor market?

10
 9

Family support policies effectively enable women to combine parenting with employment.
 8
 7
 6


Family support policies provide some support for women who want to combine parenting and employment.
 5
 4
 3


Family support policies provide only few opportunities for women who want to combine parenting and employment.
 2
 1

Family support policies force most women to opt for either parenting or employment.
Family Policy
8
Luxembourg’s corporatist welfare regime has gradually evolved over the years to a more universal system with a high degree of defamilialization. One indicator is the shift from a predominant transfer system to transfer and service system, with specific provisions for children and the elderly. Luxembourg has positively responded to its changing demographics by adapting family policy measures. In this context, the government has pushed for policy to offer a wide range of child-rearing allowances and child-care services, such as child benefits, maternity leave, parental leave, birth and post-birth allowances. Furthermore, indirect help is also offered, such as subsidized mortgage interest rates depending on the number of children per home. In general, Luxembourg offers the highest level of child benefits within the European Union. It is today one of the four leading EU member states in terms of family benefits. It has made sustainable improvements in terms of family-friendly workplace arrangements, while gender-based job segmentation and the gender pay gap, while still existing, have decreased.
When compared internationally, Luxembourg’s tax policy is family-friendly. Women’s labor-market participation has increased considerably since the launch of the European Employment Strategy. In parallel, the government has invested heavily in child-care facilities, with the aim of making it easier for women to work. Yet despite a strong increase in recent years, women’s workforce participation rate is still comparatively low, ranking only 15th in the EU-28 at 65.5%.
Luxembourg’s public child-care institutions include the “Maisons Relais” or general daycare centers; the “éducation précoce,” a third preschool year and “foyers de jour” or after-school centers. As of 2014, a total of 49,208 public child-care places were available (2009: 24,648; 2013: 46,377) for children aged three months to 12 years (or 52.2% of children aged 0 to 14 years), compared to just 7,712 places in 2009 (or 8.7% of children aged 0 to 14 years). Thus European employment policies have given Luxembourg a significant push toward broadening its child-care provisions.
The 2015 budget introduced a reform of family policies aimed at administrative simplification. Furthermore, in 2016, there will be one fixed subsidy per child regardless of the family composition. Child bonuses and child allowances will be paid in one sum, €265 per child. The government also plans to cut education and maternity allowances as part of this new coherent family policy. The Chamber of Labor (CSL) has criticized this new policy, noting that a family with two children would lose 19% of its annual benefits through the 2016 reform. To compensate for this decline in financial support, the government introduced a 0.5% supplementary tax earmarked for providing free child-care facilities for one- to three-year-olds, early language support, and intercultural education for migrants.

Citations:
Bousselin, A./ Ray, J.-C. (2011), Participation des mères au marché du travail et disponibilité locale des services collectifs au Luxembourg, Esch/Alzette
Bradshaw, J./ Finch, N. (no year), A Comparison of Child Benefit Packages in 22 Countries, Department for Work and Pensions Research Report no. 174
http://www.mega.public.lu/fr/publications/references-etudes-externes/2015/etude-tns-ilres/Etude-MEGA-2014—Rapport.pdf
http://ec.europa.eu/social/main.jsp?langId=en&catId=101
http://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=t2020_10&language=en
http://www.gouvernement.lu/4090822/14-bettel-declaration
http://www.guichet.public.lu/citoyens/de/actualites/2014/10/14-budget-2015/index.html
http://www.statistiques.public.lu/catalogue-publications/regards/2014/PDF-03-2014.pdf
http://www.men.public.lu/catalogue-publications/systeme-educatif/rapport-activites-ministere/2014/fr.pdf
http://www.csl.lu/component/rubberdoc/doc/2894/raw

Pensions

#11

To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?

10
 9

Pension policy achieves the objectives fully.
 8
 7
 6


Pension policy achieves the objectives largely.
 5
 4
 3


Pension policy achieves the objectives partly.
 2
 1

Pension policy does not achieve the objectives at all.
Pension Policy
7
Luxembourg’s pension plans offer one of the highest replacement rates within the OECD (2012) and provide a high living standard for the elderly. In 1999 Luxembourg started urgent reforms of the social security system that offers a broad scope of services and requires no out-of-pocket expenditure for benefits such as health care. The country’s package of services for the elderly (health care insurance and other allowances) is one of the most substantial and generous in the world. The rate of old-age poverty is lower than that for families, and even more so if single-parent families are considered. However, pensioners must contribute financially to the health care insurance system and are fully taxed.

In 2014, the country’s pension fund comprised a still-growing reserve of four times annual expenses. Luxembourg’s old-age dependency ratio in the private sector was at its most ideal in 2013 with 41.3 pensioners to 100 contributors, yet in 2011 fell to 40.1 pensioners per 100 contributors. The public sector, which is comprised of 90% Luxembourg nationals, is suffering from an inevitable aging effect; furthermore, wages and pensions in this sector are significantly higher than in the private sector. In December 2013, the average level of monthly pension payments was €2,159.29 for men and €1,457.91 for women, thus under the minimum income. This is important, because almost 45% of retirees (total: 155,000) today live in their home countries. These so-called cross-border retirees mostly had incomplete insurance careers, and received only 25% (€808 million) of the total retirement payments (€3,438 million) in 2013. This is going to change, and pension fund expenditures are expected to increase rapidly.

In light of the long-term sustainability of such a system, the OECD and the European Commission have urged radical pension system reform. In 2012 the government introduced a number of changes, including a gradual increase in the number of contribution years to 43 to earn the same level of benefits, as well as a reduction in benefits for those who have only contributed to the system for 40 years; indexing pension payments only to inflation rather than to nominal wages, in the event that reserves proved insufficient; and a gradual increase in the rate of pension contributions from 24% to 30% of gross wages and other income. Yet the pension reforms, which came into force on 1 January 2013, are benefiting from the favorable macroeconomic environment. The reforms were based on an estimated GDP growth rate of 3%, which is unlikely to be continued in the future. However, GDP growth was 4.8% in 2015, compared to -0.8% in 2012. Further measures must be taken to guarantee long-term financial stability through 2050.

Integration

#13

How effectively do policies support the integration of migrants into society?

10
 9

Cultural, education and social policies effectively support the integration of migrants into society.
 8
 7
 6


Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
 5
 4
 3


Cultural, education and social policies do not focus on integrating migrants into society.
 2
 1

Cultural, education and social policies segregate migrant communities from the majority society.
Integration Policy
8
Luxembourg’s migrant population since the Second World War has grown continuously. Today, some 85% of migrants are citizens of the European Union, while overall 92% are of European extraction, with the remaining highly qualified migrants coming from Japan, the United States, Canada and other countries. Luxembourg claims one of the highest performing migration populations, with an outstanding share of economic immigrants among OECD countries and a very small group of economically weak third-country nationals. Some 50% of the total resident population in Luxembourg is immigrant-based, and as of 2008 the government significantly revised its immigration and integration policy. Furthermore, in 2010 the government introduced a national action plan to better integrate the immigrant populations as well as combat discrimination (Plan d’action national d’intégration et de lutte contre les discriminations). In addition, Luxembourg has improved consultation mechanisms with migrants and pursued stronger democratic principles with regard to migrant issues. A national body focusing on migrant issues (Conseil national pour étrangers) had its first session in March 2012, and in September 2012 members elected a president and vice-president.

Every municipality is as of the review period required to establish an integration commission (Commissions consultatives communales d’intégration, CCI) that accurately represents the region’s migrant mix. As these bodies are fairly new, no detailed evaluation is yet available.

In 2014, the Migrant Integration Policy Index gave Luxembourg an overall score of 57 (59 in 2010), ranking the country 15th out of 35 nations examined. Migrant children are fully integrated into the local primary-school or secondary-school system. Children between 12 and 15 who have recently migrated to Luxembourg are given the opportunity to attend a special class 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 at a later date. Children of foreign origin have high average failure rates, a fact closely associated with the bilingual school system. As part of its evaluation though the Program for International Student Assessment (PISA), Luxembourg is regularly criticized for its low performance regarding the integration of migrant children.

All foreigners, EU citizens and third-country citizens can vote and run for office in local elections, provided they fulfill certain residency requirements and are registered on the electoral list. Inscription conditions have been eased over the years. However, the fact that the meetings of local councils are held in Luxembourgish (with written reports in German, English, or French) constitutes an impediment for resident aliens.
Non-nationals’ interest in political participation at the local level remains low. In the 2011 municipal elections, only 16.9% of those eligible to vote actually took part. Luxembourg has also for some time been criticized by chambers of commerce and non-governmental organizations over the representative makeup of parliament, as it does not include representatives for migrants or cross-border commuters, who constitute 80% of the labor market and are the main driving force of the “national” economy and nearly half the country’s population. Thus, the national Chamber of Commerce and one of the most powerful migrant lobbying groups (Association de Soutien aux Travailleurs Immigrés, ASTI) have pushed for the participation of migrants in national elections, a request that is unprecedented within the European Union. During the period under review, voting rights for resident foreigners in parliamentary elections was a cross-party issue, and an issue put to public vote in the June 2015 consultative referendum. However, an absolute majority of 78.02% voted against creating full foreigner voting rights, putting a preliminary end to this ambitious project. The next referendum is not expected before 2017. In light of this experience, the government wants to accelerate the passage of a new Naturalization Act to facilitate foreigners’ civil participation in public life.

Citations:
Office Luxembourgeois de l’Accueil et de l’Integration (November 2010), Plan d’action d’intégration (NAPICD), Luxembourg, http://www.olai.public.lu/fr/publications/programmes-planactions-campagnes/plan/olai_plan_daction_fr.pdf
http://www.asti.lu/2013/01/30/conference-quel-droit-de-vote-pour-les-etrangers-au-luxembourg-2/
http://eli.legilux.public.lu/eli/etat/leg/rgd/2011/11/15/n2
http://www.wort.lu/de/politik/endergebnis-des-referendums-steht-fest-ein-deutliches-nein-in-allen-drei-fragen-557481770c88b46a8ce5ad18
http://www.wort.lu/de/politik/reform-geplant-neues-einbuergerungsgesetz-wird-konkret-561633110c88b46a8ce61cec
http://ideas.repec.org/p/oec/elsaab/79-en.html
http://www.mipex.eu/luxembourg
http://www.statistiques.public.lu/stat/TableViewer/tableView.aspx?ReportId=9396&IF_Language=fra&MainTheme=2&FldrName=1&RFPath=69

Safe Living

#17

How effectively does internal security policy protect citizens against security risks?

10
 9

Internal security policy protects citizens against security risks very effectively.
 8
 7
 6


Internal security policy protects citizens against security risks more or less effectively.
 5
 4
 3


Internal security policy does not effectively protect citizens against security risks.
 2
 1

Internal security policy exacerbates the security risks.
Safe Living Conditions
7
While Luxembourg no longer scores among the very top cities in Mercer’s Quality of Living survey, the capital was ranked 19th worldwide in 2015 with regard to standards of living and personal security, holding the position attained in recent years.

As of 2000 the government merged the police and the gendarmerie to create the Police Grand-Ducale, cutting administration staff, strengthening the forces overall, resulting in an improvement in crime clearance rates. One ongoing focus is on the continuous education and training of police officers as an important means of adapting to new criminal methods and activities. An additional goal is to strengthen international cooperation and bilateral agreements in combating cross-border crime. Sustained efforts remain necessary to prevent activities such as money laundering, other financial crimes and terrorism. The number of international crime offenses reported to Europol rose to 5,660 in 2015. Although the number of police officers has increased every year, the crime rate is also rising continuously. The national police force showed a modest increase to a total of 1,784 police officers and 240 civil officers in 2014. According to 2014 statistics, the crime rate rose 5% as compared to 2013, with 7,839 crimes per 100,000 residents. The number of all recorded crimes increased from 39,957 in 2013 to 43,078 in 2014.
While the number of burglaries decreased during the first nine months of 2015 by 20% in comparison to 2014, drug-related crime (+30% as a result of intensified controls) and reported violence (+8.5%) have climbed again faster (with respect to total number of cases) than other crimes. Vandalism rose by 1.5% in 2014, while Luxembourg’s prisoner population increased only slightly, by 2.5% compared to the previous year (2012: total population of 679; 2013: 697).

Increasing criminality in Luxembourg not only results in rising costs, but also decreases subjective and objective safety. A recent survey showed that 34% of population believed they “could be burgled during the next year” and more than a third (37%) of people living in houses believed they “were at risk.”

Citations:
http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=crim_pris&lang=en
http://www.police.public.lu/fr/publications/statistiques-2014/20150429-presentation-statistiques.pdf
http://www.police.public.lu/fr/publications/statistiques-2014/rapport-2014.pdf
http://www.statistiques.public.lu/catalogue-publications/regards/2014/PDF-08-2014.pdf
http://www.wort.lu/de/lokales/nach-dem-rekordjahr-2014-20-prozent-weniger-einbrueche-562b97a50da165c55dc4bdd6
http://www.lessentiel.lu/de/news/Luxembourg/story/23878597
http://www.wort.lu/en/luxembourg/statec-report-1-in-3-residents-expects-to-be-burgled-54118172b9b3988708062fad

Global Inequalities

#2

To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in developing countries?

10
 9

The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in developing countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
 8
 7
 6


The government actively engages in international efforts to promote equal socioeconomic opportunities in developing countries. However, some of its measures or policies lack coherence.
 5
 4
 3


The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in developing countries. Many of its measures or policies lack coherence.
 2
 1

The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in developing countries.
Global Social Policy
9
For several years, Luxembourg has contributed approximately 1% of its GDP to official development-assistance efforts. The country has focused its sustainable development-aid policy on poverty eradication and energy-saving programs, as well as on other programs that could help reduce carbon emissions in beneficiary countries.

Since 2000, the country’s development agency, Luxembourg Development Cooperation (Lux-Development), has exceeded the U.N. industrialized-nation contribution target of 0.7% of GDP for development projects. Trailing Sweden (1.1%), Luxembourg spent 1.07% of GDP on public development-assistance funding in 2014 (EU-28 average: 0.41%). Despite the still-strained state budget and fiscal tightening, Luxembourg did not forecast a reduction in development-aid spending 2015, with this continuing to be at 1% of gross national income. The NGO umbrella organization CERCLE has pointed out, that budgetary rigor will also apply to NGO development aid policy in the coming years, reducing national co-financing costs along with NGO administrative costs.
Luxembourg’s development assistance focuses on training, health care, water-treatment, sewage, local-development and infrastructure projects, with a focus on supporting local initiatives through offering education and training programs. Some 15% of the cooperation budget is given for humanitarian help, which includes emergency assistance and reconstruction aid based on EU and OECD guidelines.

Luxembourg plays an important role in the microfinance sector, hosting firms that offer a full range of microfinance products, and supporting more than 50% of the global funds in this area. From 2013 to 2015, Luxembourg served as a non-permanent member of the U.N. Security Council, elected in part on the basis of its strong contribution to cooperation policies.

Lux-Development has been responsible for the design and implementation of the country’s development budget (€318 million in 2014) since 1992. Furthermore, about 17% of official development assistance is reserved for projects in cooperation with 95 approved NGOs, which work in concert with the government minister responsible for cooperation and humanitarian action. In 1992, Luxembourg joined the Development Assistance Committee (DAC) of the OECD, which supports bilateral cooperation and monitors aid flows; this allows Luxembourg to work with other European countries on a regular basis. Luxembourg conducts multilateral cooperation together with international organizations. A total of €70 million of the country’s official development aid (ODA) is intended for international organizations.

A recent DAC peer review recommended that policy coherence in the area of development issues be given a higher priority, and that coordination between state departments and Lux-Development be improved. Luxembourg has also implemented guidelines set by the OECD and the European Union to stop tax evasion on the part of developing countries or its citizens, although Luxembourg is one of the leading countries with regard to offering an advantageous tax home to companies seeking to avoid taxes.

Citations:
http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&plugin=1&pcode=tsdgp100&language=de
http://cercle.lu/le-zukunftspak-menace-lavenir-des-ong-de-developpement/
http://www.lux-development.lu/files/documents/RAPANN_2014_web.pdf
http://www.cooperation.lu/_dbfiles/lacentrale_files/1100/1122/MAE-rapport%20EN_2014_web.pdf
http://www.gouvernement.lu/5111541/27-cooperation-rapport
http://www.gouvernement.lu/4737059
http://www.wort.lu/de/politik/europaeisches-jahr-der-entwicklung-Luxembourg-liegt-an-der-spitze-54a6ce0a0c88b46a8ce4eafa
https://euaidexplorer.ec.europa.eu/AidOverview.do
http://www.globalpolicyjournal.com/blog/01/05/2014/worlds-top-donor
http://www.oecd.org/dac/peer-reviews/peer-review-luxembourg.htm
http://www.wort.lu/de/politik/luxleaks-und-co-einmal-anders-spart-euch-eure-entwicklungshilfe-557dcbbd0c88b46a8ce5b4f7
http://www.taxjustice.net
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