IMF Staff Country Reports

Luxembourg: Selected Issues

Publication Date:

May 9, 2014

Electronic Access:

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Summary:

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.

Series:

Country Report No. 2014/119

Subject:

Banking Economic sectors Expenditure Financial institutions Financial sector Housing prices Labor Mutual funds Prices Wages