| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2014) 417 final (02.06.14) |
| Publication Date | 02/06/2014 |
| Content Type | Policy-making |
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On 9 July 2013, the Council adopted a recommendation on Luxembourg’s national reform programme for 2013 and delivered its opinion on Luxembourg's updated stability programme for 2012-2016. On 15 November 2013, in line with Regulation (EU) No 473/2013, the Commission presented its opinion on Luxembourg's draft budgetary plan for 2014. On 13 November 2013, the Commission adopted the Annual Growth Survey, marking the start of the 2014 European Semester of economic policy coordination. On the same day on the basis of Regulation (EU) No 1176/2011, the Commission adopted the Alert Mechanism Report, in which it identified Luxembourg as one of the Member States for which an in-depth review would be carried out. On 5 March 2014, the Commission published the results of its in-depth review for Luxembourg, under Article 5 of Regulation (EU) No 1176/2011. The Commission's analysis leads it to conclude that Luxembourg is not experiencing macroeconomic imbalances in the sense of the Macroeconomic Imbalance Procedure. In particular, the analysis of the current account surplus shows that it does not stem from anaemic domestic demand, but is rather the result of Luxembourg's particular growth model, which is strongly based on financial services. Risks to the domestic financial stability stemming from the presence of a large financial sector exist but they are relatively contained as the sector is diversified and specialised at the same time. The high level of indebtedness in the private sector, in particular among the non-financial corporations mainly reflects the presence of a large number of multinational firms that use their branches or subsidiaries in Luxembourg for intra-group financing operations. Finally, the current favourable position of public finances is highly dependent on the sustainability of a growth model based on a buoyant financial sector and presents a high sustainability risk in the long term. On 28 April 2014, Luxembourg submitted its 2014 national reform programme and on 25 April 2014 its 2014 stability programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2014:417:FIN |
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| Countries / Regions | Europe, Luxembourg |
