The ABBL, represented by its Chairman Yves Stein as part of the UEL delegation, is participating in the Tripartite discussions launched by the Government in response to the current economic situation.

Press release

Luxembourg, 13 May 2026

Launch of the Tripartite in response to the economic crisis: UEL calls for strong measures to support business competitiveness

In light of the rapidly deteriorating geopolitical situation in the Middle East, the Government convened the Tripartite Coordination Committee to address the consequences of a new economic crisis, marked by an energy shock, heightened inflationary pressures and major risks for the Luxembourg economy.

First phase: assessing the economic situation and anticipating the impact

A delegation* from the Union des Entreprises Luxembourgeoises (UEL) took part, on Tuesday 12 May, in the first meeting of the Tripartite Coordination Committee. The meeting opened with presentations by the Energy Commissioner and the Director of STATEC, aimed at establishing an objective basis for the discussions and anticipating various possible scenarios, particularly regarding energy price developments.

While the Energy Commissioner’s presentation confirmed rising energy prices, the Director of STATEC presented several scenarios, including one based on a closure of the Strait of Hormuz lasting several months. This scenario, made increasingly plausible by recent developments, could trigger a strong inflationary spiral resulting in three index-linked wage adjustments by the end of the third quarter of 2027.

The UEL delegation presented the current state of Luxembourg’s competitiveness and the foreseeable impact of the conflict in the Middle East, the first effects of which are already being felt, together with a detailed overview by sector of economic activity.

UEL messages

An economic crisis affecting an already weakened economy

The conflict in the Middle East comes at a time when Luxembourg has experienced a lack of economic growth since 2022, rising labour costs, increasing unemployment and a continuous decline in productivity, all of which had already weakened the economy before the geopolitical shock.

Business competitiveness must be at the heart of the Tripartite discussions

UEL believes that the central issue of the Tripartite discussions must be business competitiveness in the face of the economic crisis. Without competitive businesses, there can be neither job creation nor job preservation, nor sustainable financing of the welfare state and social security system. Competitiveness must be the common guiding principle, for the benefit of all.

A real risk of an inflationary spiral and job destruction

The conflict in the Middle East is generating inflationary pressure linked to energy and raw materials, tensions in supply chains and the risk of further increases in labour costs (indexation, charges), potentially leading to net job losses in the private sector.

Employment depends directly on competitiveness

The growing disconnect between labour costs and productivity is weighing on employment and unemployment trends within the market economy. Preserving employment first requires strengthening business competitiveness.

The Tripartite must fully play its role as a crisis-management instrument

UEL expects the Tripartite to deliver concrete and rapid responses to contain inflation and manage its effects in order to prevent a further deterioration of the country’s economic situation.

Next steps

The Tripartite Coordination Committee will begin its negotiation phase on 2 and 3 June, with possible continuation on 8, 9 and 10 June. By then, UEL, together with its members, is committed to being fully prepared to defend the interests of Luxembourg businesses under all circumstances, with the required rigour and responsiveness.

UEL is approaching these Tripartite discussions with determination and a clear message: the competitiveness of Luxembourg businesses must be at the centre of all decisions taken. This Tripartite process must result in ambitious measures to respond to the economic crisis, particularly its energy-related components.

UEL stresses that any measure aimed at containing inflation and safeguarding the economy will prove less costly than allowing the economy to weaken further. Competitive businesses are the fundamental driver of the sustainability of the country’s budgetary policy, the financing of social security, the Luxembourg social model and, therefore, the well-being of all citizens. Without competitive businesses, there can be neither lasting prosperity nor social cohesion.