Your Weekly Recap for 28 April–2 May 2025.

Here are five things you should know at the end of this week:

  • Wages and pensions rise 2.5% in Luxembourg from 1 May
  • Ministers Bettel and Backes visit Kyiv, pledge new Ukraine support
  • Michelin unveils 2025 gastronomic guide, awarding second star to Louis Linster
  • US, Ukraine sign minerals pact as Trump shifts support from arms to investment
  • Mark Carney's Liberals mount comeback to win Canadian election

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1. Wages and pensions rise 2.5% in Luxembourg from 1 May

  • Luxembourg's national statistics office confirmed a 2.5% increase in wages and pensions starting on 1 May 2025 due to inflation.

  • The adjustment was triggered after the national consumer price index exceeded the threshold of 1,013.46 points in April.

  • The wage indexation system links pay and pension rises to inflation to safeguard purchasing power.

2.5% boost – The automatic increase means that salaries and pensions across the country will rise by 2.5%, providing a financial boost to workers and retirees alike. The adjustment will take effect on 1 May and reflects Luxembourg's commitment to maintaining income levels in line with inflation.

Automatic trigger – STATEC, the National Institute of Statistics and Economic Studies, reported that the consumer price index (ICPN) rose by 1.7% in April, surpassing the legally defined threshold that prompts an automatic wage indexation. This threshold is built into the country's economic system to respond promptly to changes in inflation. When the ICPN crosses the benchmark of 1,013.46 points, the government is obligated to activate the indexation mechanism.

Economic cornerstone – Designed to shield residents from the effects of rising living costs, Luxembourg's indexation system ensures that salaries and pensions keep pace with inflation. By adjusting incomes in line with price changes, the mechanism helps to preserve the value of people's earnings, reducing the financial strain of increased costs on households, making it a cornerstone of Luxembourg's social and economic policy framework.

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2. Ministers Bettel and Backes visit Kyiv, pledge new Ukraine support

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© Pedro Venâncio / RTL

Show of solidarity – Defence Minister Yuriko Backes and Foreign Minister Xavier Bettel on Wednesday travelled to Kyiv on a one-day visit to demonstrate continued political and diplomatic support for Ukraine amid the ongoing Russian invasion. The high-level delegation, which included officials from multiple ministries and 11 journalists, arrived by night train from Poland and held a series of meetings in the Ukrainian capital.

Their presence sought to emphasise Luxembourg's commitment to Ukraine's sovereignty and European security, a message reinforced during a joint press conference with the Ukrainian foreign minister.

Financial aid – During the visit, Luxembourg announced a new aid package totalling €21 million. This includes a €10 million increase in the country's defence budget earmarked for Ukraine, raising the total to €90 million in 2025. An additional €10 million from the Cooperation Ministry will be directed toward rebuilding Ukraine's damaged energy infrastructure. A further €1 million will go to the Olena Zelenska Foundation, which provides support for children affected by trauma from the war.

Signs of war – The ministers also visited sites of recent Russian attacks, including a residential area bombed just days earlier and a children's hospital previously targeted in a widely condemned strike. Backes and Bettel lit candles for victims and engaged with volunteers working on reconstruction efforts at both scenes.

They also held a private meeting with President Zelensky, after which both ministers praised the resilience and courage of the Ukrainian people, highlighting that Luxembourg's involvement goes beyond financial contributions to include a visible, moral presence on the ground.

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3. Michelin unveils 2025 gastronomic guide, awarding second star to Louis Linster

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© AFP

  • Louis Linster earned a second Michelin star for Restaurant Léa Linster in Frisange, joining Ma Langue Sourit as Luxembourg's only two-starred restaurants in the 2025 edition of the tyre maker's iconic restaurant guide.

  • First Michelin stars were awarded to Grünewald Chef's Table in Dommeldange and Archibald De Prince in Lauterborn.

  • Renowned chef René Mathieu reclaimed both a Michelin star and Green Star for his new restaurant Fields at the Airfield Hotel near Findel.

'Dream come true' – Louis Linster achieved a major milestone by earning a second Michelin star for Restaurant Léa Linster in Frisange, fulfilling a personal goal he had pursued for the past two years. The restaurant, originally helmed by his mother Léa Linster – who earned its first star in 1987 – now becomes one of only two restaurants in Luxembourg with two Michelin stars.

Louis described the award as a "dream come true", while Léa called it the "most beautiful gift" for her 70th birthday, highlighting the emotional and generational significance of the moment.

New stars – Two promising newcomers to Luxembourg's fine dining scene were awarded their first Michelin stars, underscoring a new wave of talent. Grünewald Chef's Table, led by Clovis Degrave in Dommeldange, received recognition just 18 months after opening, while Archibald De Prince in Lauterborn impressed inspectors despite being in operation for only six months.

Both chefs expressed gratitude and pride, seeing the awards as a testament to hard work, team effort, and a shared vision for excellence.

11 restaurants, 13 stars – Veteran chef René Mathieu marked a triumphant return by reclaiming both a Michelin star and a Green Star for sustainability at his new restaurant, Fields, located at the Airfield Hotel near Findel. Having previously earned these honours at La Distillerie in Bourglinster, Mathieu's re-emergence confirms his enduring influence on Luxembourg's gastronomic landscape.

In total, Luxembourg now counts 11 starred restaurants: Léa Linster in Frisange and Ma Langue Sourit in Moutfort both have two stars, while the list of one-starred restaurants now includes Apdikt in Steinfort, Archibald De Prince in Lauterborn, FANI in Roeser, Fields in Findel, Guillou Campagne in Schouweiler, Grünewald Chef's Table in Dommeldange, La Villa de Camille et Julien in Luxembourg City, Mosconi in Luxembourg City, and Ryôdô in Luxembourg City.

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4. US, Ukraine sign minerals pact as Trump shifts support from arms to investment

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An aerial view shows a dragline excavator operating in an open-pit titanium mine in Ukraine's Zhytomyr region. / © AFP

  • The US and Ukraine signed a minerals deal granting Ukraine full sovereignty over its rare earth resources, marking a shift in US support from military aid to long-term investment under President Trump.

  • The agreement establishes a jointly managed Reconstruction Investment Fund and ensures all profits are reinvested in Ukraine without requiring repayment of past US aid.

  • While Trump continues to oppose NATO guarantees for Ukraine, the deal signals a new US presence aimed at deterring "bad actors" and has drawn criticism for appearing to pressure Kyiv into economic concessions.

Deal signed – After months of negotiations, the United States and Ukraine this week signed a minerals deal that allows Ukraine to retain full sovereignty over its rare earth elements – resources critical to modern technologies such as electric vehicles and advanced electronics. This agreement marks a significant pivot in US-Ukraine relations, moving away from direct military support toward economic cooperation and long-term investment.

President Donald Trump's administration presented the deal as a new form of commitment to Ukraine's stability and prosperity, especially following the end of military assistance that began under President Joe Biden after Russia's 2022 invasion.

Broader efforts – Central to the agreement is the creation of a US-Ukraine Reconstruction Investment Fund, with both nations holding equal voting rights. Ukrainian officials emphasised that the deal secures the country's control over its subsoil, infrastructure, and natural resources, and that any profits from the venture will be reinvested domestically.

Crucially, Ukraine will not be asked to repay previous US aid, a point of contention early in the negotiations. The fund will support not only mineral extraction but also related energy and infrastructure projects, signalling a broader effort to rebuild Ukraine’s economy and reduce its dependency on foreign assistance.

Support or extortion? – Although Trump has rejected Ukraine's NATO aspirations and withheld formal security guarantees, he argued that a US presence at mining sites would deter malign actors, including Russia. His approach, however, has drawn criticism both domestically and internationally.

At a recent meeting in the Vatican, Trump reportedly urged Ukrainian President Volodymyr Zelensky to accept the deal due to Russia's overwhelming strength – comments that reinforced concerns about Trump's pressure tactics. Critics like Congressman Gregory Meeks have labeled the deal a form of "extortion", warning that Trump's focus on economic leverage over Ukraine could undermine broader efforts to hold Russia accountable and maintain Western unity.

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5. Mark Carney's Liberals mount comeback to win Canadian election

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© AFP

  • Mark Carney's Liberal Party won Canada's election after a dramatic comeback, campaigning on his economic crisis management skills and pledging to confront Donald Trump's trade war.

  • Despite falling just short of a majority, Carney is expected to govern with support from smaller parties and has vowed to reduce Canada's reliance on the US while reshaping the economy.

  • World leaders welcomed Carney's victory and expressed hope for closer cooperation, as Canada faces major challenges in trade, defence, and domestic affordability.

The crisis manager – Mark Carney led Canada's Liberal Party to a surprise victory in the 2025 federal election, overcoming dismal early polling and widespread voter dissatisfaction with former prime minister Justin Trudeau. A political newcomer but seasoned crisis manager, Carney convinced voters that his background steering the Bank of Canada and Bank of England through the 2008 financial crash and Brexit, respectively, made him the right leader to confront the economic chaos triggered by Donald Trump's trade war.

The campaign, dominated by Trump's aggressive tariffs and calls for Canadian annexation, saw Carney position himself as the anti-Trump candidate – firm, experienced, and unflappable – in a moment of national anxiety. His promise to beat the US in the trade war and build the strongest G7 economy resonated with Canadians seeking stability and strength.

Challenges all around – Although Liberals fell just short of a parliamentary majority, Carney is expected to push forward with key parts of his agenda by forming agreements with smaller parties. His victory marks a major political comeback for the Liberals, who were trailing badly before Trudeau's resignation in January.

Carney now faces immediate and daunting challenges, particularly how to counter Trump's economic aggression while reducing Canada's heavy dependence on US trade – three-quarters of Canadian exports go to its southern neighbour. He has pledged to create new trade corridors, deepen ties with Europe, and invest heavily in domestic manufacturing and defence, especially in the Arctic.

Yet experts warn there are no quick fixes, and Carney's honeymoon may be short-lived as Canadians also demand urgent action on inflation, housing, and cost-of-living pressures.

High expectations – World leaders swiftly congratulated Carney, praising his victory as a sign of democratic resilience and expressing hope for strengthened partnerships. European Commission President Ursula von der Leyen, India's Prime Minister Narendra Modi, and China's foreign ministry all signalled readiness to work with Carney's government on trade, diplomacy, and shared values.

From the UK to Ukraine and NATO to France, messages emphasised the importance of Canada's role on the global stage and welcomed Carney's stated ambitions to reassert Canadian sovereignty and leadership. As Carney prepares for meetings with Trump and other G7 leaders, he enters office with international goodwill – but also heightened expectations.

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The best of... 📚

  • Business & Tech – Social media behemoth Meta unveiled its first standalone AI assistant app on Tuesday, challenging ChatGPT by giving users a direct path to its generative artificial intelligence models.

  • Science & Environment – British environmental activist group Just Stop Oil held its final demonstration in London on Saturday, ending three years of high-profile climate protest stunts as they moved their focus away from civil disobedience.

  • Entertainment – Hip-hop pioneers Outkast and rock duo The White Stripes are among 2025's class of Rock and Roll Hall of Fame inductees, the organisation announced late Sunday.

  • Sport – Vaibhav Suryavanshi was touted as Indian cricket's next superstar on Tuesday after the 14-year-old's IPL century off 35 balls shattered batting records.

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And in case you missed it... ⚠️

  • Summer's comingWith summer temperatures arriving, Luxembourg's official swimming season kicks off on 1 May and runs through to 30 September.

  • Animal health Veterinarians in Luxembourg are calling for greater solidarity and respect towards professionals working in animal health, as the sector faces a troubling rise in online hostility and unfounded criticism.

  • Economy – Nearly 500 Luxembourg-based companies could face significant disruptions due to proposed US import tariffs, the government revealed in response to a parliamentary question this week.

  • Diplomacy – Following her official swearing-in, British Ambassador Joanne Olivier spoke to RTL Today about strengthening UK-EU relations, navigating key global challenges – and discovering the Grand Duchy with her dog, Pirate.

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Your Weekly Recap is published every Friday at noon. Read earlier versions.