In the near future, Luxembourg will face multiple challenges in the field of immigration and integration.
According to the Luxembourgian national statistics office Statec, the population will grow in the coming years but only thanks to the arrival of foreign workers.
Indeed, foreigners are critical to Luxembourg's economy. Without labor inflows, the country's welfare system would become unsustainable according to a 2003 OECD report. Population growth could test social cohesion, however, given that Luxembourgers fears becoming a minority in their own country.
In terms of policy, the 1972 law is scheduled for revisions in the 2006-2007 parliamentary session, but reform will be difficult. Luxembourg is struggling with the need for labor migrants and growing reticence among voters to allow more immigration.
Thus far, attempts by right-wing, openly xenophobic political groups or parties to limit immigration have failed. Complicating matters further is that fact that two ministries that oversee immigration policy are run by two different political parties.
A new law on nationality that allows for dual citizenship — but increases the residency requirement for naturalization from five years to seven — was introduced in parliament on October 7, 2006. This law would also formalize the testing of Luxembourgian language proficiency. It has not yet passed.
Luxembourg has seen a modest increase in the number of foreigners (across all socioeconomic levels and geographic regions) who register to vote in local elections, thanks to a well-targeted information campaign. However, there is room for improvement. As Grand Duke Henri said to parliament in May 2002, "The participation of the greatest possible number of people in the process of decision making is for us of national interest."
In a country where laissez faire policies regarding immigration prevailed for much of recent history, the on-the-ground reality and demographic projections make continuing past policies unviable.