The village of Vianden, in Luxembourg, cut in two by the Our river valley, is an authentic postcard, with its medieval castle, built between the 11th and 14th centuries, dominating the landscape from the top of a hill. It is also, unsurprisingly, a town where it is relatively easy to hear Portuguese being spoken on the street, or if Luxembourg were not one of the main destinations for national emigration – around 90 thousand Portuguese live in the Grand Duchy, equivalent to approximately 14% of the country’s total population. The surprise, at least for those going there for the first time from Portugal, lies in other details.
Knowing that the minimum wage in Luxembourg is currently 2700 euros (one of the highest in the EU) and that in Portugal this value is 920 euros, I confess that I was surprised when I filled up the car with 95 gasoline and paid 1.74 euros per liter, when in Portugal, that week, the average price was 1.94 euros. The main explanation for the difference in prices is the taxes that each State charges on fuel, influencing the final price for the consumer, with Luxembourg being one of those that apply the least taxes in Europe, which means that local gas stations are also sought after by customers from border countries such as Germany, France and Belgium.
Furthermore, Luxembourg VAT is among the lowest in the EU, and there is even a so-called “super-reduced rate” of 3% that is applied to several essential goods, including medicines and food. This is what makes it possible, for example, to pay 37 euros for a light but complete meal for four people (online price or even lower than that found in Portugal) or to enter a grocery store run by Portuguese, with all types of national products, and see that the typical Nestum with honey was sold for 2.35 euros per box, a value below what is paid here in at least two of the largest distribution networks in the country, as I saw, stimulated by curiosity, after a brief online search.
And what does this translate into? Whether the explanation is more or less rational, the truth is that Portuguese citizens live at a much lower financial level than millions of their European colleagues. They remain unable to make savings and other investments in their personal or family well-being, because rising wages do not keep pace with the increase in the cost of living. And it’s not just the comparison with Luxembourg. Let’s look at another case: in the last few days, I drove on highways in five different countries and the toll cost was huge – 0 (zero) euros. How many Portuguese would like to say the same?
It is for this sum of economic reasons, compared to other European countries, that the field becomes tilted to our disadvantage when trying to entice young people to stay in the country. There are always those who remember that, at least, we have a mild climate and, with so many days of sun exposure, an inexhaustible and free source of vitamin D. If only the sun would pay the toll…
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