The first part of our interview with Josip Glaurdić, political scientist at the University of Luxembourg, looked at how the public and experts in Luxembourg perceive security in Europe and the Grand Duchy, and what steps the European Union should take to protect itself and convince the public of the necessity of those measures.
In this second part, we turn to what Luxembourg itself can do within the EU framework to enhance its own security.
According to the Luxsentinel report, Luxembourg finds itself in a strategic predicament. On one hand, as a small country, its ability to defend its interests through the traditional means of power is limited.
On the other hand, it is increasingly exposed to the consequences of a more unstable global order: economic coercion, cyber threats, risks to energy security, and the prospect of a more fragile European system.
Experts interviewed for the study recognise these challenges. While Luxembourg is not a major strategic actor in its own right, it contributes to European security policy through specialised expertise.
60% of experts highlight the country’s strengths in finance and economics, 55% see Luxembourg as a mediator forging coalitions within the EU, and 53% view it as a key meeting place for European and international actors.
Further, 31% point to Luxembourg’s know-how in technology, data, and space activities, and 27% mention legal expertise.
Despite these recognised areas of strength, 40% of respondents see Luxembourg’s foreign policy as largely aligned with the positions of larger EU member states.
This raises the question of what more Luxembourg could do to proactively safeguard its own foreign policy interests.
Glaurdić stresses that Luxembourg, as a founding member of the European community, has historically played a larger role in European integration than its size might suggest.
However, it is a very different matter to take a leadership role in a bloc of six countries compared to one of twenty-seven. In such a large union, it is natural that a small country’s influence will be limited.
Yet, this does not mean Luxembourg is powerless. In fact, Luxembourg has successfully focused on niche areas of strategic importance such as space, satellites, or cybersecurity, and according to Glaurdić, this should continue.
Beyond its niche strengths, Luxembourg should continue to drive the process of European integration. The Luxsentinel report reveals that neither the public nor experts oppose EU enlargement.
Both groups agree, however, that any expansion should be guided by strategic interests and adherence to existing membership criteria, and that the EU must maintain its capacity to make effective decisions.
As Glaurdić puts it, "Luxembourg can and should do even more to promote European integration". The report shows that both experts and the public believe the current way decisions are made within the EU is not working, but they also agree that one needs "more Europe".
By this, he means deeper integration, and whenever enlargement is discussed, it must make strategic sense.
Glaurdić admits being surprised that neither experts nor the public are against enlargement, but both want it to be "aligned with the Union’s geopolitical needs".
Despite this, Luxembourg is not currently leading in either area. Glaurdić observes that Luxembourg appears focused on securing the transatlantic partnership with the United States, rather than promoting European strategic autonomy.
Policymakers and the business community, he says, seem intent on maintaining strong transatlantic ties for as long as possible. While understandable, this approach overlooks the fact that Luxembourg's state and development model depends fundamentally on a stable Europe.
He argues that a "functioning transatlantic partnership is excellent, but at some point, we must recognise that Luxembourg’s core interests require a functioning Europe – one that is at peace with itself and has peace at its borders".
While the partnership has enabled this for seventy years, he does not think it is still essential, making it high time to "reconsider our priorities".
One of the biggest institutional challenges is that the EU can only make key foreign policy decisions with unanimous agreement among all member states - a situation that must change, according to Glaurdić.
He points to the model of "multi-speed Europe" as a potential solution, allowing those countries willing to deepen cooperation to do so ahead of others. This approach has already been implemented successfully in areas like Schengen and the single currency.
As a small state, Luxembourg’s survival depends on the international system continuing to respect norms and the principle of sovereignty.
Luxembourg and the EU should also do as much as possible to ensure the community of countries committed to these principles remains as large and strong as possible.
To build a coalition of countries that uphold these principles, be they Canada, Australia, Japan, South Korea, India, or nations in South America, Luxembourg "must preserve the foundation of a rules-based order, especially as the global mood shifts", Glaurdić elucidates.
Economic and budgetary questions are also central to Luxembourg’s security policy. The study shows that 51 percent of experts and 25 percent of the public now view rising economic inequality as a threat to Luxembourg’s prosperity.
Furthermore, nearly one in five members of the public see national wealth endangered by high public debt and budgetary pressures.
The challenge is to explain to citizens who are already concerned about inequality and public finances why more money needs to be invested in defence, as those funds will not be available for other priorities.
Glaurdić acknowledges the difficulty: the budget is finite, and any allocation to defence means less funding elsewhere. But the issue is more complex than dividing a fixed pie.
European societies face the challenge that young people increasingly feel their lives will not surpass those of previous generations. The economic model has failed to protect the vulnerable or guarantee access to affordable housing.
To convince future generations to support higher defence spending, these fundamental issues must first be addressed. Otherwise, the case becomes one of defending a system that appears unfair.
According to him, "we are asking people to defend a dysfunctional system. That will not work. People will not accept it; to them, it is illogical".
Ultimately, Glaurdić concludes, Luxembourg must succeed in building a fairer economic model, and then make the case to its citizens: this is the system we are asking you to defend.
