In the press
On Friday 28 November 2025, Fondation IDEA asbl published Working Paper No. 33, “Does Cross-Border Integration Generate Economic and Social Convergence within Greater Luxembourg?”, examining the effects of Luxembourg’s labour market on employment and demographic dynamics in neighbouring regions.
According to IDEA, Luxembourg is expected to forego €1.9 billion in 2026, nearly 6% of central government revenue, due to tax expenditures. These exceptional fiscal mechanisms serve various public policy objectives, such as facilitating access to housing, encouraging retirement savings, strengthening the purchasing power of young people, enhancing national attractiveness, supporting job seekers, and promoting research. The foundation noted, however, that many of these schemes may not be fully identified and that their effectiveness, measured against their objectives and opportunity costs, is rarely assessed.