Luxembourg: Selected Issues

International Monetary Fund

No 2014/119, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues Paper analyzes the fiscal position and significant challenges for Luxembourg. Luxembourg’s fiscal position is currently sound, however, fiscal safety buffers are being eroded. The country’s healthy fiscal position will be challenged by forthcoming revenue losses as well as rapid trend growth in expenditures. An overall strategy to address this coming deterioration is needed. Beyond the planned value-added tax increase, recurrent property taxes are a possible additional source of revenue. On expenditures, social benefits should be an area of focus, and reforms of these benefits should also aim to reduce disincentives to work.

Keywords: ISCR; CR; bank; Luxemburg; indexation; real estate; labor market; indexation agreement; parent bank; diversification effort; wage earnings; bank assets; banks provision; wage level; Mutual funds; Financial sector; Housing prices; Wages; Global (search for similar items in EconPapers)
Pages: 60
Date: 2014-05-09
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