Parliamentarians on Wednesday voted in Luxembourg’s budget for 2026, adopting increases in health and defence expenditure as well as a new child tax credit of almost €1,000.
A total of 34 deputies from the Christian Socialist Party (CSV) and Democratic Party (DP) voted for the budget. Some 25 opposition deputies from opposition parties – the LSAP, ADR, the Greens, déi Lenk and the Pirates – voted against it, parliament said on its website.
During the budget debate, Green deputy and former Justice Minister Sam Tanson said there was no clarity on the tax reform – which is to be presented on 6 January – and how it might impact public finances.
“I can’t believe that these calculations were not carried out in the ministry, since the text is ready,” she said. “That’s why I absolutely don’t understand the lack of transparency.”
The 2026 state budget in graphics
Fred Keup of the right-wing ADR said there was a “lack of strategy” and plan for reducing the deficit, a concern echoed by other opposition deputies.
“You have no more reserves, only debts, and you are not using this debt to shape the future, but to finance the standstill,” Pirate party MP Sven Clement told Finance Minister Gilles Roth during the budget debate.
Roth expects a deficit of €1.2 billion for 2025 and €1.49 billion for 2026, the Luxemburger Wort reported.
DP deputy Gilles Baum defended the budget and said it focused on people and not just numbers.
It is “a budget that bears a social-liberal signature and declares war on poverty as rarely anyone has done before,” he said.
Huge rise in health and defence spending planned under draft 2026 budget
Under the 2026 budget, Luxembourg will increase defence spending by €500 million next year to reach €1.3 billion, representing 2% of gross national income. Among the scheduled spending in next year’s defence budget includes €80 million to support Ukraine, as well as €94 million to build a Cyber Defence Cloud.
The health budget will increase by 10.5% in 2026 to €494 million, with investments in the new CHL hospital building and €10.7 million in digitalisation, while a further €21 million will be spent on buying new vaccines.
The biggest slice of the transport budget will be spent on the railways, with €3.4 billion pledged in tranches over the next four years. This funding includes improvements on the Luxembourg–Bettembourg line and the second phase of the modernisation of the station in Howald. Luxtram will also receive investment worth €73.8 million next year.
(This article was originally published by the Luxemburger Wort. Machine translated using AI, with editing and adaptation by Kate Oglesby)
