Encouraging a rational approach to decision-making

08.05.2024

Position and Opinion of UEL

The UEL advocates the development of the “evidence-based policy” principle for political decision-making. This approach, which is characterised by taking action on the basis of evidence, is already applied in many disciplines such as medicine and science.

Nicolas Simons, Chief Economist

One of its main objectives is to “depoliticise” public action. In this way, decisions are taken on the basis of established facts rather than political, emotional or media considerations. It is in this perspective that the credo of objectification of the debate defended by the UEL fits in. We encourage the taking of rational and pragmatic decisions that are necessary for the future of the country and its competitiveness, even if they do not turn out to be the most popular.

UEL underlines the efficiency and good results obtained during major crises in recent years.

In 2020, during the Covid-19 crisis, a “Covid-19” Task Force was set up to offer the combined expertise available within the Luxembourg public research sector (LIH, LISER, LIST, LNS, Luxinnovation, University and FNR). This Task Force has made it possible to take more informed and rational political decisions in an emotional and stressful environment. This response was welcomed by the OECD, which congratulated the country on having set up the Task Force at the very start of the crisis.

In 2022-2023, during the energy crisis marked by inflation levels the likes of which Luxembourg had not seen for 40 years, STATEC, as part of the Tripartite Coordination Committee, assessed the impact of the various measures proposed on inflation. This approach made it possible to take informed political decisions and measures that effectively reduced inflation.

Luxembourg is fortunate to have independent, high-quality bodies to deal with a number of major issues: the Conseil National de la Productivité (National Productivity Council) for productivity issues, the General Inspectorate of Social Security (IGSS) for pensions issues in particular, and the Conseil National des Finances Publiques (National Public Finance Council) for budgetary issues.

The notion of “evidence-based policy” creates more links between the scientific and political communities. UEL believes that it is necessary to continue to structure and develop a rational, scientific and objective approach to decision-making.

This article was written by Nicolas Simons, Chief Economist of UEL.