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07/12/2007 - The Grand Duchy of Luxembourg has successfully undertaken an in-depth transformation of its economy in the space of a few decades but, in order to ensure its economic future, it needs to reconcile various imperatives in the fields of transport and the environment, according to a new OECD study.
OECD Territorial Reviews, Luxembourg notes that the growth in its economy, dominated by the financial sector, has now elevated the Grand Duchy to first place among OECD countries in terms of GDP per capita.
Luxembourg is also the OECD country in which the proportion of foreigners in the population is the highest: 39.5% in 2006, far ahead of Australia with 22%. Every day, more than 131 000 foreigners cross the border to work in Luxembourg where the labour market, with a rate of unemployment lower than that of neighbouring countries, is attractive in terms of job opportunities and pay.
These increasing flows create numerous problems with regard to transport and the environment which have not yet been resolved in spite of co-operation within the "Greater Region" (Grande Région) with the neighbouring regions of Germany, France and Belgium. According to the report, it is clear that Luxembourg's future economic development will depend on co-ordinated measures to improve infrastructure deployment.
The report recommends that the Luxembourg authorities should, inter alia:
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Take account of Luxembourg's transport policies within the "Greater Region" in order to extend the analyses and measures currently taken in this respect.
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Formulate a future master plan for infrastructure using a multimodal approach with quantified objectives and taking due account of road haulage, which adds to congestion and is an important source of greenhouse gas emissions.
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Draw up a multi-year financing schedule reflecting identified and integrated priorities.
To promote the construction of new housing, the Luxembourg authorities should:
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Extend the monitoring and forecasting of land and housing markets to the "Greater Region" so as to derive a better measure of the impact of the sector on cross-border traffic.
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Ensure, through awareness and promotion campaigns directed at local officials, that national strategic priorities are properly taken into account in local urban planning documents (Plans d'Aménagement Généraux - PAG).
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Introduce a genuine property tax as a way of encouraging the sale of building lots.
Lastly, according to the report, while future territorial and administrative reform takes account of territorial development imperatives, strengthened co-operation between municipalities is required, as is defining regions with critical mass. Civil society could also be more closely associated with policy proposals, the implementation of which requires the mobilisation of sufficient human and financial resources.
Journalists may obtain a copy of this report on request from the Media Division of the OECD (tel. + 33 1 45 24 97 00). For further information, please contact Erin Byrne, Regional Competitiveness and Governance (tél. 33 1 45 24 85 78).
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