21 Jun 2021, 16:24

Liberal Party threatens to topple govt over rent reform

alt text
On the left, Liberal Party leader Birgitte Nyborg; on the right CMP Minister of Commerce Francis Underwood
.
.

Parliament House.- Montenbourg's centrist government, a coalition of the Classical Monarchist Party and Liberal Party under PM Xavier Bettel, came under threat on Monday after the Liberal Party vowed to bring it down over the prospective abolition of rent controls on new residential housing.

The Liberal Party threat came after the government received a report into the reform of Montenbourg's highly regulated and much debated rent market, proposing that tenants and landlords negotiate rent between them and that rents subsequently follow the consumer prices index. "This is a disaster for Montenbourg's tenants," Liberal Party leader Birgitte Nyborg, who as a leader didn't acquire a position in Cabinet as part of the coalition agreement, told MBC news agency. "This means sharply higher rents and a paradigm change for the housing market."

Nyborg reiterated a threat to join forces with the right-wing opposition to bring down Prime Minister Xavuer Bettel government if the proposal was brought to parliament. Montenbourg's parliament is fragmented and the Classical Monarchists and the Liberals form a fragile government dependent on their mutual support. General elections are scheduled for next year.

However, Minister of Commerce and member of the CMP Francis Underwood dismissed the prospect of raised rents for large numbers of people.

"All the tenants who have become anxious after the recent agitation can breathe a sigh of relief. This does not affect them," Underwood told a news conference, adding he wanted minor changes to the proposals before putting them to parliament.