Eurogroup statement on the updated draft budgetary plan of Luxembourg for 2024

We welcome the submission of the updated draft budgetary plan (DBP) for 2024 of Luxembourg on 6 March 2024 and the Commission´s Opinion published on 18 April 2024.

We note that, based on the Commission assessment, the updated DBP of Luxembourg risks being not in line with the fiscal recommendations of the Council from July 2023. Based on the Commission assessment, taking into account outturn data for 2023, the growth of net nationally financed primary expenditure in 2024 is not projected to respect the maximum growth rate recommended by the Council in July 2023 and emergency energy support measures are not expected to be wound down in line with the Council recommendation.

We note that, based on the Commission assessment, the headline budget deficit and public debt for 2024 are expected to be well below the Treaty reference values, of 3% of GDP and respectively, 60% of GDP.

The Eurogroup invites Luxembourg to consider in a timely manner and as necessary to take action to address the risks identified by the Commission to ensure that fiscal policy is in line with the recommendations adopted by the Council and welcomes Luxembourg’s commitment to follow-up as needed, including during the implementation of its 2024 budget.

The Eurogroup will continue to closely monitor economic and fiscal developments regularly and reinforce its policy coordination.