Luxembourg Boosts ILO Funding to €6.8m for 2026–2029

As global development financing faces growing strain, the renewed partnership signals Luxembourg’s sustained commitment to multilateral cooperation and the advancement of decent work worldwide.

The Government of the Grand Duchy of Luxembourg and the International Labour Organization (ILO) have renewed their long-standing partnership, signing a new Strategic Partnership Framework for 2026–2029 that increases Luxembourg’s contribution to €6.8 million.

The agreement, signed on 2 February 2026, marks a €400,000 increase over the previous funding cycle and reinforces Luxembourg’s role as one of the ILO’s most consistent multilateral supporters at a time of mounting global crises.

Strengthening Predictable Multilateral Financing

Luxembourg’s contribution will be channelled through the ILO’s Regular Budget Supplementary Account (RBSA), a flexible funding mechanism designed to provide predictable, unearmarked resources aligned with the Organization’s strategic priorities.

In an era marked by geopolitical instability, economic uncertainty and rising social inequalities, both partners emphasized the importance of stable core funding to advance decent work, social protection and labour rights globally.

Laura Thompson, ILO Assistant Director-General, praised Luxembourg’s sustained leadership in multilateral cooperation, highlighting its commitment to allocating 1 percent of gross national income (GNI) to development cooperation and humanitarian aid — a benchmark met by only a small number of countries globally.

A Long-Standing Partnership

Luxembourg has been a strong supporter of the ILO’s core mandate and flagship initiatives, including:

• The Regular Budget Supplementary Account (RBSA)

• The Global Flagship Programme on Building Social Protection Floors for All

• Country-level cooperation in Cabo Verde and Rwanda

Georges Ternes, Director for Development Cooperation and Humanitarian Affairs at Luxembourg’s Ministry of Foreign and European Affairs, reaffirmed his country’s view of development cooperation as an investment in global stability and resilience.

He also underscored Luxembourg’s support for ongoing reforms of the multilateral system aimed at strengthening effectiveness and safeguarding the principles of multilateralism.

Focus on Social Protection and UN Reform

Following the signing ceremony, Luxembourg and the ILO held their Annual Consultation, reviewing key priorities including:

• The ILO’s role in the context of the UN80 reform agenda

• Strengthening RBSA funding impact

• Progress under the Global Flagship Programme on Social Protection Floors

• Ongoing projects in Rwanda and Cabo Verde

Both sides agreed to deepen regular exchanges to enhance coordination and maximize impact over the 2026–2029 period.

Advancing the 2030 Agenda

The renewed framework aligns with Luxembourg’s continued commitment to implementing the 2030 Agenda for Sustainable Development, particularly Goal 8 on decent work and economic growth and Goal 1 on poverty reduction through social protection systems.

By increasing its contribution and maintaining flexible funding through the RBSA, Luxembourg aims to strengthen the ILO’s capacity to respond to emerging labour market challenges, expand social protection coverage and promote social justice globally.

As global development financing faces growing strain, the renewed partnership signals Luxembourg’s sustained commitment to multilateral cooperation and the advancement of decent work worldwide.