On Wednesday, the Trade and Investment Board convened to discuss Luxembourg's economic future in light of recent geopolitical events.
The Trade and Investment Board, which operates under the Ministry of the Economy, is made up of different lawmakers, members of the Chamber of Commerce, and members of Luxinnovation.
After the meeting, Minister of the Economy Franz Fayot explained that the division between West and East has become even greater, with the United States as a close business partner on the one hand, and Russia no longer a trading option on the other.
Decisions as to which countries remain economic partners now have to be taken. Minister Fayot noted that this is no simple black-and-white matter and that a balance needs to be struck between human rights issues and support for small businesses.
Luc Frieden, president of the Chamber of Commerce, expressed confidence that Luxembourg can both defend values and conduct trade. Even after Russia's invasion of Ukraine, the former finance minister from the Christian Social People's Party (CSV) maintains his belief that trade can be used to "build bridges".
Efforts of isolation may only result in a stronger alliance between countries like Russia, China, and Turkey, explained Frieden, who is also president of Banque Internationale à Luxembourg (BIL). China's Legend Holdings Corporation is currently BIL's principle shareholder.
Minister Fayot believes that the European market, which he described as advanced yet poor in resources, needs to stay as open as possible while also becoming more autonomous. He referred to microchips, electric car batteries, and health products as areas in need of improvement. Minister Fayot also said that local food production will become more important, as will renewable energies.
However, Frieden expressed doubts that Europe can become fully autonomous, pointing to a number of phones on the table in front of him: "We have to cooperate with countries from which we get primary resources so that we can guarantee stability, diversification, and prosperity."
Representatives from the Trade and Investment Board also announced several new economic missions: Portugal in May, Canada in June, and South Korea towards the end of the year. The Chamber of Commerce will also launch new projects, most notably in the neighbouring Grand-Est region in France.
Officials also provided insight into Luxembourg's participation in the World Expo in the Japanese City of Osaka in 2025. The pavilion will operate under the motto of sustainability and innovation, which is why the structure will be designed for later reuse. The mission itself aims to leave no carbon footprint.
