The cross-border cooperation between Luxembourg and France has intensified considerably since the creation of the Intergovernmental Conference in It has contributed significantly to the integration of our border areas for the benefit of their inhabitants through exchanges in numerous fields.
The consequences of the Covid 19 pandemic have further brought the two countries closer to each other, having kept their common border open throughout the health crisis. As the number of French residents working in Luxembourg is steadily increasing - over , at the beginning of - both sides reaffirm their commitment to this intergovernmental framework in order to ensure good coordination of public policies.
This body also aims to stimulate the emergence and implementation of joint initiatives designed to improve the daily lives of border residents and promote the harmonious economic development of this area, based on co-development.
Since the last intergovernmental conference, progress has been made on telework by raising the tax tolerance threshold from 29 to 34 days through an amendment to the tax agreement signed on 7 November As telework continues to expand, both parties are committed to continuing discussions by the end of in order to reach a permanent solution as of 1 January , if necessary, through the conclusion of a new agreement.
In addition, France has decided to simplify the administrative procedures for Luxembourgish employers who employ teleworkers residing in France. Thus, the financial law of introduces a mechanism for timely advance payments debited directly from the employees' bank account instead of the application of a withholding tax by the employer. Facilitating travel and the mobility of cross-border workers, which are at the heart of our fellow citizens' concerns, is another important topic of cooperation between the two parties, which focus on collective and sustainable transport, as this is the only way to ensure medium-term solutions for the growing flow of cross-border workers.
