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Stopgap solution for 2014 Luxembourg budget
Economics

Stopgap solution for 2014 Luxembourg budget

26.11.2013 From our online archive
The 2013 budget will be extended by a maximum of four months in order to allow the incoming government to vote a new budget when it takes office and prevent the Luxembourg state from becoming insolvent.

(CS/DS) The 2013 budget will be extended by a maximum of four months in order to allow the incoming government to vote a new budget when it takes office and prevent the Luxembourg state from becoming insolvent.

Ahead of the elections in October, outgoing Prime Minister Jean-Claude Juncker had warned that there could be an impasse in regard to the timing of the 2014 budget.

A so-called “douzième provisoire” is now set to ensure that the state can continue to levy taxes, as well as taking out and paying back loans, for a maximum period of four months until the end of April next year.

Any expenses not foreseen in the 2013 budget will need special parliamentary approval during this period.

Last year, parliament voted on the budget on December 13 – a date considered late, which followed a protracted debate about the Grand Duchy's finances and several changes to the initial bill.

With the new government not expected to be installed before mid-December, work on the budget will need to be a top priority in order to ensure that the “douzième provisoire” is not surpassed.

Finance Minister Luc Frieden officially submitted the proposal for the extension of the budget on Monday – probably the last bill he will hand in during the current legislative period.

Parliament will have to green-light the proposal in one of its next sessions.