The government intends to concentrate on seeking an agreement with the social partners at the next tripartite meeting. Prime Minister Bettel has stressed that negotiations will be held behind closed doors and that he is unwilling to speculate on the measures – or their costs – at this stage.

The first round of meetings is scheduled for September 18-20.

In its simplest form, a tripartite is a series of formal meetings between government, employers and trade unions or worker representatives. These meetings could concern a proposed legislative change that affects employment in one or more sectors, or a major decision by a company that will affect its workers, such as restructuring and layoffs, or substantial changes to working conditions.

In terms of supply chain management and price developments, the Grand Duchy depends on a European solution. However, internal discussions have already taken place and Prime Minister Bettel has declared that the government is ready to put in place regulations if the free market requires it.

Analysis: Bettel says little – but EU action is key to cutting energy costs

Minister Turmes explained the situation of the European energy market. He cited Spain as an example of a country that has already been forced to reverse reckless measures.

Furthermore, he explained that France is currently struggling with corrosion in many of its nuclear power plants. In Scandinavia, the lack of rain in recent months has also led to a drop in energy production from hydroelectric plants.

Given that Luxembourg imports 100% of its gas supplies and a large part of its electricity supplies, the ministers said the Grand Duchy will continue to advocate for open borders. Discussions with European partners are currently underway.

Read the knowledge sheet: Tripartite – the Luxembourg social model