Until 2013, Luxembourg was governed by a CSV–LSAP coalition under Jean-Claude Juncker. After concerns over political oversight of the intelligence agency of Luxembourg, the Service de Renseignement de l'État, the LSAP withdrew its support from the government. Juncker then resigned as prime minister on 11 July 2013 and asked the Grand-Duke to dissolve the Chamber of Deputies and call an election. In the election held on 20 October 2013, the CSV lost some seats but still remained as the largest party in parliament, though without a majority of seats. However, representatives of the DP, LSAP and the Greens agreed to form a government on election night, after the results had been announced. Coalition talks started within a few days, and the coalition agreement was announced one and a half months later, and the new government was sworn in on 4 December 2013. This was only the second government since 1945 that did not involve the CSV. It was also the first time the Greens were involved in government. The three parties had a majority of 32 seats out of 60 in the Chamber of Deputies. Due to the colours associated with the 3 parties the arrangement was known as a "Gambia coalition" among some commentators, as it reflected that country's flag.
Overview
In general, the government had two main priorities, curbing the budget deficit, and in the area of social policy. In terms of the former, the government raised the basic rate of VAT from 15 to 17 percent from 1 January 2015. Same-sex marriage was made legal from 1 January 2015. On 11 September 2014 the Deputy Prime Minister Etienne Schneider announced plans to introduce a church tax, payable only by members of religious congregations; the churches would then have to pay their clergy's salaries themselves. This would have replaced the system of the clergy being paid by the state. From November 2014, the government had to deal with the LuxLeaks scandal. On 7 June 2015, the government held a constitutional referendum, asking, amongst other things, whether residents of Luxembourg without Luxembourgish nationality should be allowed to vote in national elections. While all 3 parties in the government coalition campaigned for a "Yes" vote, the result was an overwhelming "No".
