Assessment of Public Finances - June 2015

The 'National Council of Public Finance' (CNFP) adopted its first "Assesment of Public Finances" during its 27 May meeting. This assessment is prepared on the basis of the Stability and Growth Programme for the 2015-2019 period.

Compared to other countries, Luxembourg continues to present a rather favourable fiscal position. Although fiscal rules will likely be respected in the short term, the sustained rate of increase in public expenditures and the progressive worsening of budgetary balance are posing a threat to continued adherence to these rules in the medium and long term.

In addition, the automatic correction mechanism may potentially have to be activated prior to the end of the period under review.

In the longer term, costs resulting from the ageing of the population should cause the public authorities to adopt an inter-generational approach that will allow them to anticipate and remedy a situation of potential imbalances in public finances.

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