Fedil: Restoration of competitiveness must be a priority

The global political landscape changed fundamentally in 2024. After the European elections in May, Ursula von der Leyen was re -elected as President of the European Commission for a second term, « her political priorities are, in particular, focused on the economic competitiveness of the Union and the strengthening of European defense, » says Georges Rassel, President of the Fedil at the General Assembly of the Industrial Association on Thursday.

These topics are all the more important when Donald Trump was once again elected President of the United States, which gives rise to concern about transatlantic relations and security in Europe.

Complex global economic environment

Within the EU, the year 2024 was to be characterized by a political reorganization that was characterized by the rise of conservative and populist parties and increased political instability in several countries, including France, Germany, Austria and Belgium – with a complex global economic environment that was characterized by continuing international tensions, which continued to burden the supply chains and the trade balance.

A tentative economic recovery in the euro zone of 0.5 percent in 2024 reflected the persistent effects of the energy crisis and the tightened international competition, which increased the pressure on European industries.

The decline in industrial production, especially in energy -intensive industries, has been due to several factors, in particular the increasing energy prices in connection with the consequences of the war in Ukraine, the weak construction activity in several European countries or the dulls on the European automotive market.

Luxembourg was also unable to escape the general trends, said Rassel. While the Luxembourg overall economy with a slight growth of 0.5 percent in 2024 profits again in 2024, construction activity is still in the downward trend.

« Logementsdësch » bears fruit – slowly

The Fedil President summarizes the measures for administrative simplification and to support the companies in the sector « only slowly wear » as part of the « Logementsdësch » in early 2024.

As for inflation, this has dropped compared to 2023 and is now below one percent, while inflation in the euro zone is two percent. « An increase in inflation in Luxembourg is expected for 2025, in particular due to the relaxation of the measures to limit energy prices, » says the Fedil annual report.

In view of the difficult economic and political environment and the deterioration in trade relationships, it is necessary for the European Union to make decisions in order to support the competitiveness of the companies.

Small country with a high quality of life

Luxembourg is today a small country, but it has grew up through industry for decades. Thanks to industry, a high quality of life could be achieved. And to secure these achievements, the country and the economy would have to rely on the development of an innovative economy.

To do this, one has to try to diversify industrial activities by continuing to open up new possibilities. « Together we will continue to work to realize the vision of the Fedil, which consists in the development and diversification of a strong, carbon -poor and highly productive economy, which is supported by the use of new market opportunities or market niches, technological progress, the development and attraction of talents and international cooperation ».

At the national level, the Fedil was still heavily involved in all dossiers related to the energy transition and the decarbonization of the industry. Be it through their participation in the « Energiedësch » or through their cooperation in the high committee for the development of industry, the Fedil « was able to enforce their positions and recommendations in particular in favor of the member companies, which are faced with high energy costs and difficult to reach decarbonization targets ».

A question of survival

In the area of ​​innovation and technological change, the Fedil experts have dealt primarily with the implementation and implementation of important European regulations such as the data act, the AI ​​Act or the NIS 2.0 directive.

For the Luxembourg and European companies, the restoration of competitiveness is an absolute priority, if not a question of survival. In 2025, Fedil will also carefully pursue the dossiers in this regard and support its members on this question.