According to political scientist François Heisbourg, "we have to choose sides" in a world that is divided between "democratic states on the one hand and authoritarian regimes on the other."
While Luxembourg's economy is facing great changes, it has dealt with similar challenges before and has managed to adapt since the Second World War thanks to a more compact and hence more flexible economy, according to political scientist and policy advisor François Heisbourg.
"It is time to repeat this kind of transformation as it has been done in the past," the expert said during a presentation at the Chamber of Commerce on Tuesday. Looking back on the Grand Duchy's history, Heisbourg noted how the country's success started with the steel industry, before the economy evolved, thanks to investment from abroad, first into a banking hub and then into its current role as a "global financial broker." According to the expert, this role "is still quite new for people who have been living with this model for the past 25 or 30 years."
After the end of the Cold War from 1991 until 2014, Luxembourg had "an exceptional quarter century" economically speaking, but the authorities were "too naive," failing to recognise the real impact of Russia's annexation of Crimea in 2014 or ignoring the fact that China was transforming itself into a superpower: "Russia and China could go further than a simple partnership, these two major powers could form an alliance against the rest of the world," the expert stressed.
The war in Ukraine, but also the escalation of the conflict over Taiwan between the United States and China, could have serious consequences for Europe: "The island of Taiwan is geographically located in an area where a little more than half of all international trade takes place. This would affect all EU countries," Heisbourg explains, adding that "any war in this region could have far more serious consequences than the one in Ukraine. "
The political scientist believes that trade and economic relations "can no longer be neutral" in light of the "very tense" geopolitical context. In a world that is divided between "democratic states on the one hand and authoritarian regimes on the other," the expert has no doubt that "we have to choose sides." According to Heisbourg, business has become "an element of the strategic game," and business is the arena in which the change must occur.
