National Recovery and Resilience Plan: Luxembourg

Abstract

Luxembourg’s national Recovery and Resilience Plan (RRP) unfolds in three directions: social, green and digital. They largely correspond to the idea of sustainable growth endorsed by the UN SDGs. The EU Commission acknowledged that the investments and reforms set out in Luxembourg’s RRP may effectively support the green and digital transitions; help to address challenges identified in the European Semester; and strengthen Luxembourg’s growth potential, job creation and economic and social resilience. Nevertheless, the country needs to cope with a number of unresolved issues, including the financial sustainability of its public pensions scheme and skills shortages in some key sectors, such as health care. Luxembourg’s RRP seems particularly promising because of the possibility it offers of building on the implementation of the European Pillar of Social Rights, thereby providing it with a solid social basis.