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Luxembourg residents upbeat about economy, EU survey finds

Luxembourg residents are far more likely to view their personal finances and their country’s economic outlook in a positive light than those in other EU nations on average, according to the latest Eurobarometer poll conducted by the European Commission.

People living in the Grand Duchy were also more confident about their economic prospects over the coming year than EU citizens on average, the survey showed. The country has the highest average wage in the EU, and salaries are automatically adjusted by 2.5% once inflation crosses a certain threshold through the wage indexation policy.

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More than 80% of participants in Luxembourg – where over 500 people were interviewed in April this year – described the country’s economic state, their household finances and personal job situation as good, well above the EU average across all three areas, where the share expressing satisfaction ranged from 58% on the national economy to 72% on household finances.

Almost one in four people in Luxembourg – 23% - expected the economic situation over the next twelve months in the country to be better, up five percentage points from the end of last year, and slightly above the EU average of 21%.

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Housing is by far the most important issue facing Luxembourg at the moment, almost 60% of respondents said, echoing concerns expressed in the national Politmonitor survey published this week. Housing was ranked well ahead of the second-biggest concern for Luxembourg residents, inflation and the cost of living, which was selected as the top priority by 37% of participants.

In stark contrast, just 12% of those surveyed across the EU felt housing was the most important issue facing their country, with the cost of living coming out on top as the main concern across the bloc.

Residents in both Luxembourg (38%) and across the EU as a whole (35%) believed that the war in Ukraine is the key problem for the bloc, followed by immigration, which was cited by 24% of respondents in both Luxembourg and across the EU.

Almost three-quarters of people in Luxembourg expressed trust in their national government, well above the EU average of 33%. There was also a higher level in trust in the EU among Luxembourg residents, with 56% stating they had confidence in the bloc compared to just under half across all member states on average.

In response to Russia’s invasion in Ukraine, more than 90% of people in Luxembourg said they agreed with providing humanitarian support and allowing those fleeing entry into the EU, above the bloc’s average.

However, just 55% of those surveyed in Luxembourg said they agreed with granting Ukraine candidate status for potential EU membership, a lower level than across the bloc as a whole, where 60% expressed support for the move.

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