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Luxembourg: Selected Issues

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  • International Monetary Fund

Abstract

This Selected Issues paper on Luxembourg reports that exemplary high growth rates and prudent fiscal policies provided the financial basis for the welfare system. Social expenditures in per capita terms, even adjusted for the large number of cross-border workers, rank highest among European Union countries, primarily driven by high replacement rates of public income support, including for unemployment benefits, the minimum guaranteed income, and pensions. Rapid social spending growth has funded substantial increases in unemployment and family benefits.

Suggested Citation

  • International Monetary Fund, 2006. "Luxembourg: Selected Issues," IMF Staff Country Reports 2006/165, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2006/165
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=19202
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    References listed on IDEAS

    as
    1. Muriel Bouchet, 2003. "The sustainability of the private sector pension system from a long-term perspective: the case of Luxembourg," BCL working papers 6, Central Bank of Luxembourg.
    2. International Monetary Fund, 2004. "Luxembourg: Selected Issues," IMF Staff Country Reports 2004/124, International Monetary Fund.
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