Luxembourg’s structural deficit remains uncorrected in 2025
By the AFREEQUE newsroom, based on L’essentiel
Luxembourg’s structural balance stood at -0.2% or -0.02% of GDP in 2025 depending on the estimates used, against a target of 0%. The deviations are not considered significant under the law and do not trigger a corrective mechanism, according to the National Council of Public Finances.
Luxembourg’s structural deficit stood at -0.2% of gross domestic product (GDP) in 2025 according to the estimate by Statec, the national statistics institute, and at -0.02% according to that of the European Commission. Both levels remain below the medium-term budgetary objective set at 0% of GDP, the National Council of Public Finances (CNFP) said.
The CNFP nevertheless considers that neither deviation is sufficiently significant under the law to trigger the budgetary correction mechanism. The nominal balance of general government reached -€1.604 billion in 2025, or -1.8% of GDP, while that of central government stood at -€2.294 billion, or -2.5% of GDP, according to the CNFP.
