Werner-Schaus II Government

[1] Two ministerial reshuffles occurred during this government, one on 5 July 1971 with the addition of two secretaries of State, the other on 19 September 1972 with the resignation of Madeleine Frieden, due to a scandal.

[1] In the period 1969–1974, Luxembourg continued to play an important role in Europe thanks to ideas on monetary integration developed by its Prime Minister.

[2] In January 1968, invited to a congress of the CDU in Germany, Pierre Werner had presented a five-point plan for European Economic and Monetary Union.

[2] Provoking the interest of the other member states of the EEC, Werner was invited to elaborate his views before the conference of ministers of finance in Rotterdam in September 1968, then at the European summit of The Hague in December 1969.

[2] In its final report, the commission of experts gave priority to: The “Werner Plan” was well-received, but the difficulties of the United States dollar and the pound sterling, the oil crisis and stagflation put a halt on its realisation.

[2] A protocol signed on 27 October 1971 tried to satisfy Luxembourgish demands in establishing a new distribution of excise income at regular intervals.

[3] In 1968, the Economic and Social Council had warned the government that “everything leads us to believe that the times of great prosperity are over and will only return temporarily and in exceptional circumstances.

Subsequently, one should not expect the steel industry to continue to be, as it has for many years, […] the essential pillar of technical, economic and social progress of the country”.

[3] However, the full use of production capacities and increased global demand created a runaway situation which risked accelerating the spiral of inflation.

[4] In 1969, the government had to cede to civil service demands for a “correction” of the gap that had grown between public and private sector pay.

[4] The growth of the Luxembourgish economy accentuated the geographic imbalance by accelerating the depopulation of the predominantly agricultural Northern regions.

[4] The law of 20 March 1974, concerning the general development of the territory, for the first time addressed the question of structural and geographic balance on a national level.

[5] In the sphere of the media, the government pursued the collaboration of the State with the CLT, at the same time reinforcing the control of the public powers over the company.

[6] By abolishing the collation des grades, the government fulfilled one of the central demands which had provoked in May 1968 the strike of the students of the "Cours supérieurs".

[6] The law of 6 May 1974 installed “mixed committees” in businesses employing over 150 workers, and organised the representation of employees in public companies.

[6] The law of 12 November 1971 on the protection of youth stipulated that a wife was no longer obliged to obtain her husband's permission to start legal proceedings.

[6] However, these questions touched on sensitive points of the philosophy of the CSV, which feared an excessive liberalisation which would risk shaking the ethical foundations of society.

[6] The Prime Minister, anxious to avoid ideological battles, counted on a long procedure and favourised the adjournment of the parliamentary discussion until after the elections.