On Monday 25 January 2016, the Union des Entreprises Luxembourgeoises (UEL) held the annual tripartite exchange of views under the umbrellae of the CES.
On this occasion, chairman of the UEL, Michel Wurth announced its strategic orientation in line with the Luxembourg growth model, stating that COP21 and the World Economic Forum in Davos had made it apparent that the global economy would need a revamped business model by 2050, the pursuit of which both the EU and Luxembourg have fallen behind compared to other economic areas.
The UEL was of the opinion that the dialogue initiated by the government and the Chamber of Commerce as part of the strategic study on the Third Industrial Revolution (TIR) is fundamental, as it allows for an expanded discussion of the opportunities arising from the technological revolution as well as the contradictions which endanger current business and, subsequently, social models.
According to Michel Wurth, the revolution is already underway and any attempts to refute or resist it will ultimately bear harmful consequences for our economy and our lifestyles. It is therefore necessary to embrace it in order to guide it and create a smooth transition to this new world.
UEL saw potential for inclusive and sustainable growth which is radically different from the current extensive model built on a permanent increase in employment. This could apparently represent an era of opportunity for an energy revolution, an increase in performance and productivity for businesses and the state with the key to a better quality of life for the population and new prospects for the young generation.
Regarding cons, Mr. Wurth highlighted the pension system as a significant contradiction that must be treated. The report of the Chamber of Deputies on the 2016 budget was of a similar opinion:
"To perpetuate the current system, we are condemned to having to annually create thousands of jobs and to attract, accommodate, feed, transport etc. tens of thousands of additional residents or border workers to infinity, in order to guarantee the payment of pensions falling due in a few year and the pension promise given to young people today who are just starting their careers."
According to Michel Wurth, in a world as economical in resources as that described by Mr. Rifkin, the 'snowball' system can no longer work. The UEL called for this to be integrated into political debate in order to find another way to maintain the quality of social protection, with the UEL President calling for Xavier Bettel to integrate the Chambre des Salariés and the Chambre des Fonctionnaires et Employés Public into the Steering Committee of the TIR project.
Photo by UEL (Michel Wurth)
