Yuricko Backes / © Luxembourg Department of Finance
In her first bilateral visit to Poland since taking on the role of finance minister last year, Yuricko Backes addressed the fourth Luxembourg-Poland Business Conference in Warsaw last week.
The minister told attendees at the packed conference that Luxembourg and Poland face many challenges. Both ministers also had the occasion on 27 January to discuss bilateral relations during a meeting at the Ministry of Finance in Warsaw.
In the context of the war in Ukraine, which neighbours Poland to the east, Backes emphasised the importance of cooperating on the European stage, telling conference delegates that Poland, Luxembourg and Europe have "shown that we can stand together, we must stand together". She added that EU diplomatic action "kind of works" but is not perfect.
On Wednesday last week, Poland vaunted the key role its tenacious diplomatic wrangling played in Germany deciding to send Leopard tanks to Ukraine after weeks of feet dragging by Berlin.
The Grand Duchy has also committed significant resources to supporting Ukraine, with more than €75 million in lethal and non-lethal equipment provided to date. It has further embarked on a two-year mission to train Ukrainian military personnel.
Overall, Backes was clear that while Europe was hurting from the war's impact on energy security, "we need to be on the right side of history and we are".
"Strong European economy"
Aside from the comments on Ukraine, Backes also addressed delegates on the theme of the conference, which was centred on the future of sustainable finance.
Given the bloc's economic challenges, which have been exacerbated by the war in Ukraine, Backes emphasised the need to focus on "the green and digital transition" to spearhead Europe's recovery. For a "strong united Europe" to stand up to Russia, Backes said, required a "strong European economy".
The conference was hosted by Luxembourg's ambassador in Warsaw, Paul Schmit, and organised in close cooperation with the Luxembourg Poland Chamber of Commerce (LPCC), the Polish Embassy in Luxembourg and Poland Luxembourg Chamber of Commerce from Poland. It was sponsored by ProService Finteco, a corporate member of the LPCC.
Poland's finance minister, Magdalena Rzeczkowska, echoed Backes' focus on a Europe in crisis, noting that a "sustainable and forward-looking strategy for finance" was necessary in the current context.
Climate action and cooperation
Also in attendance was Teresa Czerwińska, Vice-President at the European Investment Bank (EIB), which is headquartered in Luxembourg. She said that the coronavirus pandemic and war in Ukraine had brought uncertainty and rising energy costs, which had damaged the investment climate within the EU. Nonetheless, Czerwińska emphasised that it was important to not lose focus on tackling climate change.
Czerwińska told attendees that "unlocking investments in climate action" is important, adding that "we have no time to waste".
In this context, delegates were treated to two expert panels covering the importance of digital transformation in enabling sustainable finance, and the role of private equity and venture capital in greening Europe's economies. The assembled experts expressed confidence that Luxembourg and Poland could work together in these areas.
Indeed, Luxembourg and Poland's business relationship runs deep. Not only have their been over 120 bilateral business events organised by the chambers of commerce, but there are also personal ties. Nasir Zubairi, for instance, CEO of Luxembourg House of Financial Technology (LHoFT), has a Polish mother from the city of Gdansk.
When it comes to addressing Europe's energy crisis, as well as climate change, continued bilateral and EU-level cooperation is vital. As Polish finance minister Rzeczkowska put it, the future is "a chance but also a challenge".
