The first Juncker–Asselborn Government was the government of Luxembourg between 31 July 2004 and 23 July 2009. It was led by, and named after, Prime Minister Jean-Claude Juncker and Deputy Prime Minister Jean Asselborn .
67-405: The Juncker-Asselborn Ministry may refer to: Juncker-Asselborn Ministry I Juncker-Asselborn Ministry II Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with the title Juncker-Asselborn Ministry . If an internal link led you here, you may wish to change the link to point directly to
134-546: A balanced budget, especially as tax receipts depended largely on the economic situation, which itself depended on the performance of the financial sector. The financial centre remained the engine of growth. However, its legal framework was subject to adjustments. On 1 January 2006, a law came into force introducing a withholding tax in full discharge on revenue from savings. That same year, the European Commission decided that holding companies that were exempt on
201-533: A bill on the right to die with dignity in 2002. In 2006, the government drafted a bill on palliative care and support for people at the end of their life. it decided to have it discussed along with the Err/Huss bill. The two bills were passed by the Chamber of Deputies in 2008, in the course of two votes. Notably, the parliament avoided the traditional divide between government majority and opposition by exempting
268-722: A branch of the European executive. On 15 April 2008 in Brussels, Juncker suggested that the eurozone should be represented at the International Monetary Fund as a bloc, rather than each member state separately: "It is absurd for those 15 countries not to agree to have a single representation at the IMF. It makes us look absolutely ridiculous. We are regarded as buffoons on the international scene." However Finance Commissioner Joaquín Almunia stated that before there
335-689: A day before a meeting of the Economic and Financial Affairs Council (ECOFIN) of the Council of the European Union . They communicate their decisions via press and document releases. The group is related to the Council of the European Union (only Eurogroup member states vote on issues relating to the euro in the ECOFIN) and was formalised under the Treaty of Lisbon . The Eurogroup, formerly known as
402-639: A national referendum. While the Luxembourgish electors voted with 56,52% in favour of the Constitution in the referendum on 10 July 2005 , France and the Netherlands rejected it. To remedy this failure, an intergovernmental meeting prepared a new agreement, the Treaty of Lisbon , which was signed on 13 December 2007 by the 27 member states of the EU. On 29 May 2008, the Chamber of Deputies ratified
469-619: A personal, local, national and also on a European level." while referring to Southern European countries affected by the European Debt Crisis . This statement led to strong reactions by many European figures, as Gianni Pitella , head of the Socialist group in the European Parliament (to which Dijsselbloem's party belongs) said "There is no excuse or reason for using such language, especially from someone who
536-619: A priority for government policy. The level of public investment remained high, independent of economic fluctuations. Several large projects, started under previous governments, were completed: the Grande-Duchesse Joséphine-Charlotte Concert Hall ( Philharmonie ) and the "Centre de musiques amplifiées" ( Rockhal ) in 2005, the Grand Duke Jean Museum of Modern Art ( MUDAM ) in 2006, a new terminal for Luxembourg Findel Airport and
603-532: A reorganisation of the institutional architecture of the Union, made necessary by the successive enlargements. On 29 October 2004 in Rome, Luxembourgish representatives signed the Treaty establishing a Constitution for Europe . This treaty should have come into force in 2006 after being ratified by all signatory states, which ended up not taking place. Several countries, including Luxembourg, decided to ratify it through
670-501: A reorientation. In order to make the governments more responsible to their European partners, each member state had to submit a national programme of reform to the European Commission for the years 2005–2008. The Luxembourgish government advocated an integrated approach aiming not only at competitiveness, but also at "an increased social cohesion and a more harmoniously balanced environment". A second large project that
737-476: A return to growth: the GDP reached a growth rate of 4% in 2005 and 6,2% in 2006. However, the unemployment rate remained fairly high, between 4 and 5%, despite the creation of 21,000 new jobs in 2005 and 2006. Moreover, Luxembourg experienced higher inflation than most other Eurozone members, which threatened a loss of Luxembourg's competitiveness compared with its principal trading partners, even though Luxembourg in 2007
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#1732772636458804-583: Is common representation, a common political agenda should be agreed. In January 2010 Juncker indicated that the commission is to propose that the group become a member of the G20 . During the 2013 Economic crisis in Cyprus, Eurogroup proceeded towards the first bail-in approach towards the Cypriot banking sector, resulting in the confiscation of deposits of Cyprus' two main banks. Despite the lack of any visibility on
871-586: Is however fluid; IMF personnel are sometimes allowed to be present at meetings. What remains unknown about this group is whether they allow observers to speak or speech by the observers is forbidden. Prior to the Lisbon Treaty , the Eurogroup had no legal basis. A formal legal basis was granted for the first time under the Lisbon Treaty when it came into force on 1 December 2009. Protocol 14 of
938-475: Is supposed to be a progressive". Manfred Weber , leader of the European People's Party group , tweeted "Eurozone is about responsibility, solidarity but also respect. No room for stereotypes". The Portuguese Prime Minister , António Costa , said his words were "racist, xenophobic and sexist" and that "Europe will only be credible as a common project on the day when Mr. Dijsselbloem stops being Head of
1005-518: The Euro summit and has held meetings irregularly during the financial crisis. Since the beginning of the monetary union, its role has grown in regards to the euro's economic governance. The fact the group meets just before the Ecofin council means it can pre-approve all Ecofin's decisions on eurozone affairs. In 2009 the Treaty of Lisbon formalised the group and its president. The current president of
1072-537: The Euro-X and Euro-XI in relation to the number of states adopting the euro, was established at the request of France as a policy co-ordination and consultation forum on eurozone matters. The December 1997 European Council endorsed its creation and the first meeting was held on 4 June 1998 at Senningen Castle in Luxembourg . To begin with, the chair of the Eurogroup mirrored that of the rotating presidency of
1139-615: The Judiciary City in 2008. In the area of communications and transport, there were also several promising achievements. From March 2007, the Luxembourg-Perpignan rolling road offered an alternative to road transport. From June 2007, the LGV Est linked Luxembourg to Paris, reducing travel time by a third. The Luxembourgish state had participated in the funding of this high-speed line. In terms of land-use planning,
1206-509: The education law of 1912 . Learning was now defined in terms of competences to be acquired, and the age of mandatory schooling was raised to the age of 16. A significant social measure was also the introduction from 1 March 2009 of a system of vouchers which gave the right to a range of educative extracurricular services (daycare centres, crèches, etc.). This was a first step towards at least partly free provision of these services The modernisation and development of infrastructure continued to be
1273-624: The CSV and LSAP started coalition negotiations, which involved 15 meetings. On 31 July 2004 the new CSV-LSAP government was sworn in. After a ministerial reshuffle on 22 February 2006, Jean-Louis Schiltz became the Minister for Defence. Luc Frieden remained in charge of Justice, the Treasury, and the Budget. In his speech on the state of the nation in 2007, Jean-Claude Juncker stated that "only
1340-463: The Council of the European Union , except where the Council presidency was held by a non-eurozone country, in which case the chair was held by the next eurozone country that would hold the Council presidency. In 2004 the ministers decided to elect a president and in 2008, the group held a summit of heads of state and government, rather than Ministers of Finance, for the first time. This became known as
1407-664: The Deputies from voting discipline. However, the Grand Duke indicated to the Prime Minister that he was not able to "sanction" any law on the right to die with dignity , invoking a conflict of conscience. In order to avoid an institutional crisis, while leaving the head of state his right to freedom of opinion and of conscience, the country's political authorities undertook a revision of the Constitution . From now on,
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#17327726364581474-471: The Eurogroup and apologises clearly to all the countries and peoples that were profoundly offended by his remarks". Former Italian Prime Minister Matteo Renzi also called on Dijsselbloem to quit, saying that "If he wants to offend Italy, he should do it in a sports bar back home, not in his institutional role". In a reaction Dijsselbloem said: "Everyone knows that I didn’t say that all southern Europeans spend their money on drinks and women. That’s not what
1541-476: The Eurogroup in January 2010, Juncker emphasised the need to broaden the scope of the Eurogroup's business. In particular in terms of co-ordinating economic policies and representation. Juncker proposed creating a small secretariat consisting of four to five civil servants to prepare the group's meetings. However, although France and Spain support such plans, Germany fears that strengthening the group might undermine
1608-412: The Eurogroup is Paschal Donohoe , the former Minister for Finance of Ireland . In September 2004, the Eurogroup decided it should have a semi-permanent president who would be appointed for a term of two years. Finance Minister and then Prime Minister of Luxembourg Jean-Claude Juncker was appointed to be the first president of the Eurogroup, mandated from 1 January 2005 until 31 December 2006, and
1675-478: The Eurogroup was a significant factor in the formation of the DiEM25 movement to "re-democratize Europe", to which Varoufakis belongs. NGO Transparency International has also repeatedly called for an overhaul of the governance of the Eurogroup. The European Ombudsman has even opened a case on the matter, demanding more transparency. Among all those critics, here are concrete examples of democratic shortcomings of
1742-585: The Eurogroup's presidency allowed Juncker to regularly join in meetings of the G7 and of the International Monetary Fund to assure a unified representation of the Eurozone within international bodies. The Luxembourgish presidency of the Council of the European Union in the first half of 2005 constituted a highlight in the area of foreign policy. During this time, Luxembourg hosted numerous ministerial meetings and preparatory sessions. The most important advances of
1809-620: The Eurogroup: In 2008, in light of the 2008 financial crisis , French President Nicolas Sarkozy (speaking at the European Parliament as the outgoing president of the European Council ) called the Eurogroup to be replaced by a "clearly identified economic government" for the eurozone, stating it was not possible for the eurozone to go on without it. The eurozone economic government would discuss issues with
1876-547: The European Central Bank, which would remain independent. This government would come in the form of a regular meeting of the eurozone heads of state and government (similar to the European Council ) rather than simply the finance ministers which happens with the current Eurogroup. Sarkozy stated that "only heads of state and government have the necessary democratic legitimacy" for the role. This idea
1943-601: The European Union (EU) which have adopted the euro as their official currency . The group has 20 members. It exercises political control over the currency and related aspects of the EU's monetary union such as the Stability and Growth Pact . The current president of the Eurogroup is Paschal Donohoe , the Minister for Public Expenditure, National Development Plan Delivery and Reform of Ireland . The ministers meet in camera
2010-471: The European Union gives Luxembourg the means to exercise influence on events abroad; it is important for Luxembourg to influence the development of Europe". The European community remained the preferred area of operation for Luxembourgish diplomacy. Several times in the past, the Grand Duchy's political representatives had been appointed to posts of high responsibility in the Union. On 10 September 2004,
2077-585: The Franco-German intergovernmental plan, stating that community institutions should perform that role. In 2017, a number of voices including Pierre Moscovici, Emmanuel Macron and Jean-Claude Juncker have called for the Eurogroup to formally chaired by the European Commissioner for Economic and Monetary Affairs and the Euro . This would constitute a step towards formalizing the Eurogroup as
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2144-409: The Grand Duke promulgated laws in his capacity as head of the executive, but no longer had to sanction them as part of the legislative branch. The law on euthanasia and assisted suicide was finally promulgated on 16 March 2009. Eurogroup The Eurogroup is the recognised collective term for the informal meetings of the finance ministers of the eurozone —those member states of
2211-465: The Greater Region, European Capital of Culture 2007). By encouraging projects of long-term cross-border cooperation, this cultural event was able to strengthen the common feeling of belonging among the 11 million inhabitants of the Greater Region. In the area of social policy, several large-scale reforms were carried out. From 1 January 2009, a new law on nationality came into force. Fostering
2278-561: The Luxembourgish Presidency were the relaunch of the Lisbon Strategy and the reform of the Stability and Growth Pact . The Lisbon Strategy formulated in 2000 aimed to make the European Union the most competitive and dynamic knowledge economy of the world by 2010, which would at the same time be able to respond to the social and environmental expectations of its citizens. In 2005, it became possible to undertake
2345-545: The Luxembourgish presidency managed to conclude with success was the reform of the Stability and Growth Pact. Adopted in 1996, this formed the cornerstone of the Economic and Monetary Union . Imposing rigorous budgetary discipline, it was to guarantee the stability of the Euro. The challenge consisted of finding a formula to allow a more relaxed application of the Pact, which would take economic realities into account without at
2412-551: The Prime Minister and Minister for Finances, Jean-Claude Juncker , was elected by his European colleagues as president of the Eurogroup , the informal group for finance ministers of the members of the Eurozone . His two-year mandate was renewed in 2006 and again in 2008. Despite being an informal organisation, the Eurogroup played an important role in coordinating the budget policies of the Eurozone member states. The function of
2479-652: The banks' credentials and balance sheets, Eurogroup decided to utilise deposits of the two banks for a bail-in. The process is not completed yet. However, it has been criticized by some in the EU as an attack on private property. In March 2017, Jeroen Dijsselbloem, the president of the Eurogroup at the time, told the German newspaper Frankfurter Allgemeine Zeitung "As a Social Democrat, I attribute exceptional importance to solidarity. But those who call for it also have duties. I cannot spend all my money on drinks and women and then hold my hand up for help. That principle applies on
2546-436: The basis of the law of 1929 were in receipt of a state aid that was incompatible with the common market. The Luxembourgish government agreed to repeal this tax regime in return for a four-year transition period, The 2007–2008 financial crisis also had repercussions in Luxembourg. Like other European states, the Luxembourgish state was compelled to intervene to rescue its banks and support the economy. The funds awarded in 2008 to
2613-550: The euro crisis, this also led the Eurogroup to suffer from the lack of accountability and limited democratic oversight. Hence a growing number of critics by various stakeholders against the undemocratic aspects of the Eurogroup. In 2017, the Commissioner Pierre Moscovici described the Eurogroup as "a pale imitation of a democratic body." and former Greek finance minister Yanis Varoufakis vocally denounced its "outrageous opacity". The non-transparency of
2680-429: The eurozone, only those states using the euro (the Eurogroup countries) are permitted to vote on it. This vastly informal nature has led to a number of controversies, criticisms and debates on the governance of the monetary union. Because of its minimalist legal basis, the Eurogroup is mostly an informal body with very large discretionary powers. Though such nature may have allowed decisiveness in decision making during
2747-403: The financial sector represented 7,64% of GDP, including 2,5 billion Euros in acquisitions of shares and 300 million Euros of guarantees. In March 2009, the government formulated a plan to support the economy, in order to combat the effects of the crisis. The government had not however awaited the crisis to begin a reflection on the structural strengths and weaknesses of Luxembourg. Commissioned by
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2814-634: The first time since 1984, it managed to recover from the slow erosion of its position as the dominant party. Its coalition partner, the Democratic Party, lost a third of its seats, and was left with only 10 seats in the new Chamber of Deputies . The other winners of the election were the Greens (Déi Gréng), receiving 7 seats (up from 5 in 1999). For the first time, they were represented in parliament with members from all four constituencies. The LSAP gained one seat compared to 1999, and again became
2881-488: The framework of bilateral accords with third parties. In several months, the Luxembourgish government signed twenty agreements of non-double taxation which implemented the rules of the OECD. On 8 July 2009, Luxembourg was the first financial centre to be removed from the "grey list" of the OECD. Under the previous government, between 2001 and 2004, Luxembourg had experienced a slowdown in its economy. The year 2005 again marked
2948-536: The health insurance and pension funds of the private sector and led to the creation of one single professional chamber and one employment tribunal for the sector. From 1 January 2009, the National Health Fund ( Caisse nationale de santé ) replaced the old social security bodies that were based on socio-professional distinctions. The debates on competitivity brought up the importance of education again. The government encouraged initiatives which went beyond
3015-643: The independence of the European Central Bank . In June 2012, the Estonian minister of finance Jürgen Ligi was being considered as a possible successor for Juncker. In January 2013, Juncker however hinted that his likely successor would be Jeroen Dijsselbloem of the Netherlands , who was appointed second president of the Eurogroup on 21 January 2013. On 13 July 2015, Dijsselbloem was reelected. On 9 July 2020, Paschal Donohoe of Ireland
3082-476: The integration of foreign residents in Luxembourg, it made it possible to adopt dual nationality , while raising the period of obligatory residency from 5 to 7 years. The Luxembourgish language was recognised as an essential factor of integration. Applicants had to pass a language exam and attend civic education classes. The initiative for another important social reform came from two Deputies, Lydie Err (LSAP) and Jean Huss (The Greens), who had already presented
3149-541: The intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Juncker-Asselborn_Ministry&oldid=932924338 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Juncker-Asselborn Ministry I It represented a coalition between Juncker's Christian Social People's Party (CSV) and Asselborn's Luxembourg Socialist Workers' Party (LSAP), after these had been elected
3216-414: The largest and second-largest parties respectively in the legislature, in the general election of 2004 . Previously, the CSV had been governing in coalition with the liberal Democratic Party . At the elections of 13 June 2004, the two parties that had been in government since 1999 experienced different fates. The CSV emerged the winner of the election, gaining 5 more seats than its 1999 result of 19. For
3283-466: The masterplan IVL, adopted in 2003, determined the fundamental direction. It was gradually complemented by regional masterplans and sectoral masterplans. The government was convinced of the need for adopting a cross-border vision of the dynamics which animated the Luxembourgish territory. It chose land-use planning as the main theme of its presidency of the Greater Region in 2008 and 2009. The aim
3350-528: The minimum wage. Nevertheless, the index, combined with the sudden rise in oil prices, was seen as the main cause of inflation. The social partners agreed on an adaptation of the index. Discussions within the Tripartite prepared the way for another important structural reform: the introduction of a single status for employees, which put an end to the outdated distinction between workers and private employees. The harmonisation of statuses made it possible to merge
3417-620: The practices of traditional teaching and which represented innovative projects: the "Neie Lycée", a pilot school based on cooperation and themed projects; "Eis Schoul", a research primary school based on inclusive teaching methods; the "École de la 2e chance" (School of the Second Chance) for school-leavers; and a cross-border school, the Deutsch-Luxemburgisches Schengen-Lyzeum Perl. In 2007, the government submitted three bills which would replace
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#17327726364583484-776: The previous coalition, professor Lionel Fontagné of the University of Paris I presented a report in November 2004 on Luxembourg's competitivity, entitled A crack in the steel ( Une paille dans l’acier ). The conclusions of this analysis fed in to the work of the Tripartite Coordination Committee which included the government and the social partners. The Tripartite managed to agree on the structural determinants of competitivity, namely education and innovation. Public and private efforts would increase spending on research and development. A national action plan
3551-615: The representatives of the Ministers with responsibility for finance of the Member States whose currency is the euro and of the Commission. Article 2 : The Ministers of the Member States whose currency is the euro shall elect a president for two and a half years, by a majority of those Member States. Furthermore, the treaty amended the Council of the EU's rules so that when the full Ecofin council votes on matters only affecting
3618-423: The same time allowing budgetary laissez-faire. The requirement to keep the deficit under 3% and public debt under 60% of GDP was maintained. The reform which came into force in late July 2005 allowed the member states to escape a too restrictive deficit policy in the case of a recession and after examining a certain number of "pertinent factors". European politics during the period was marked by efforts to achieve
3685-464: The second-largest party in the Chamber with 14 seats. However, it did not manage to return to its strong results from before 1999, having made only light gains. The ADR lost seats for the first time since its entry into parliament in 1989, and was left with 5 seats (7 in 1999). The far left, divided between the Communist Party and Déi Lénk , only received no seats. After these results,
3752-681: The simplified text without a new referendum. Apart from European affairs, an important part of foreign policy consisted of the promotion of Luxembourgish industries and the financial centre abroad. The Luxembourgish government increased the number of economic missions especially in Asian countries (China, India, Japan, South Korea, Vietnam, United Arab Emirates, Jordan, Saudi Arabia, Dubai, Turkey, Kuwait, Qatar), but also in North and South America (United States, Canada, Mexico, Peru) and some European countries (Russia, Sweden, Finland). The goal of these visits
3819-464: The treaty lays out only two articles to govern the group; Article 1 : The Ministers of the Member States whose currency is the euro shall meet informally. Such meetings shall take place, when necessary, to discuss questions related to the specific responsibilities they share with regard to the single currency. The Commission shall take part in the meetings. The European Central Bank shall be invited to take part in such meetings, which shall be prepared by
3886-493: Was also blamed. The Grand Duchy appeared on a "grey list" established by the Organisation for Economic Co-operation and Development (OECD). The Luxembourgish government protested against being likened to a tax haven and undertook efforts to counter the image of the financial centre. On 13 March 2009, Luxembourg decided to conform to the standards of the OECD and committed itself to the exchange of information on demand in
3953-399: Was based on the meeting of eurozone leaders in 2008 who met to agree a co-ordinated eurozone response to the banking crisis. This is in contrast to an early proposal from former Belgian Prime Minister Guy Verhofstadt who saw the European Commission taking a leading role in a new economic government, something that would be opposed by the less integrationist states. Sarkozy's proposal
4020-520: Was elected to be the fourth President of the Eurogroup taking office on 13 July 2020. On 5 December 2022, Donohoe was re-elected, with his second term beginning on 13 January 2023. The ECB President , Economic and Monetary Affairs Commissioner and Chairman of the Eurogroup Working Group also attend the meetings. Members of the EU who choose not to participate in the Eurozone have been excluded from observer status. The membership
4087-443: Was in the interview and it wasn’t my message. The anger about the interview is anger about eight years of policies to deal with the crisis. [...] I would have rephrased it otherwise probably. But it was my way of making clear that solidarity is not charity. It's not for nothing that the aid programs of the European emergency fund are accompanied by strict conditions: You get very cheap loans provided you take action to restore order. That
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#17327726364584154-465: Was opposed by Eurogroup chair Jean-Claude Juncker who did not think Europe was ripe for such a large step at the time and opposition from Germany killed off the proposal. Merkel approved of the idea of an economic government, but for the whole of the EU, not just the eurozone as doing so could split the EU and relegate non-eurozone states to second class members. In his 2011 State of the Union address , Commission President José Manuel Barroso opposed
4221-666: Was re-appointed for a second term in September 2006. Under the Lisbon Treaty, this system was formalised and Juncker was confirmed for another term. The presidency has helped strengthen the group, since before Juncker's appointment the Eurogroup was only present at meetings in the European Parliament . Since the position of President of the Eurogroup was created, the president has attended the European Parliament Committee on Economic and Monetary Affairs every six months. After his reappointment as President of
4288-435: Was still ranked the 5th most competitive economy in the EU. In addition, despite the economic bright spell, the Luxembourgish government remained restrained in its forecasts. It endeavoured to consolidate the public finances and to slow the increase in expenditure. Indeed, while until 2001, the budget had regularly showed a surplus, in 2005 the deficit reached 1,9% of the GDP. The government proclaimed its intention to return to
4355-532: Was to allow the country to reach the Lisbon goals. The government increased its commitments to finance the activities of the University of Luxembourg , set up in 2003. In 2006, a multi-year contract was signed between the State and the university, providing the latter with long-term planning security. Within the Tripartite, opinions continued to differ on pensions funding, the automatic indexation of pay (the index) and
4422-451: Was to develop, in tandem with the entities in the Greater Region, an integrated strategy of spatial development in the areas of transport, business parks and housing. In the longer term, the government's aim was the creation of a cross-border decentralised metropolitan region. The search for a greater internal cohesion was also at the heart of the organisation "Luxembourg et Grande Région, capitale européenne de la culture 2007" (Luxembourg and
4489-505: Was to make itself known in these regions with high potential for growth and to support Luxembourgish businesses in their search for new markets. In order to encourage efforts to internationalise the Luxembourgish economy, the government created in 2007 two promotion agencies: Luxembourg for Business and Luxembourg for Finance. After the 2007–2008 financial crisis , international pressure on countries which continued to practise banking secrecy grew. Luxembourg, like Switzerland or Austria,
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