Mario Grotz highlights importance of US-Luxembourg relations

Mario Grotz, the newly appointed director of Luxinnovation, emphasised the significance of Luxembourg's economic relations with the United States during an interview with our colleagues from RTL Radio on Monday. He described the US as "one of the countries that Luxembourg is most actively seeking to attract business from," underscoring the strong ties between the two nations.

The importance of economic relations with the United States

Grotz, who previously served as an advisor to the Ministry of the Economy, outlined three key factors that highlight the importance of the US-Luxembourg relationship. First, he noted that the US is "one of the countries from which Luxembourg wants to attract companies." He highlighted the Grand Duchy's "very good relations," particularly in regions like Silicon Valley, and stressed the need to maintain these partnerships.

Secondly, Grotz pointed to Luxembourg's significant exports to the US, expressing concern over recently announced tariffs. He warned that these tariffs could have a particularly damaging impact on the automotive and steel industries, potentially creating a "disaster" for sectors that rely on US trade. ArcelorMittal, the global steel giant headquartered in Luxembourg, could face significant challenges if tariffs are imposed.

Grotz also emphasised the importance of Europe remaining a key hub for steel production, noting the industry's leading role in decarbonisation efforts. The steel industry is at the forefront of investing in decarbonisation technologies, from electrification to hydrogen use, he said. "Luxinnovation's mission is to support these players in adopting the right technologies to adapt and decarbonise," he added.

Finally, Grotz highlighted the need for the European Union and Luxembourg to maintain access to US technologies, particularly in light of potential restrictions on computer chip exports to Europe. He expressed hope that the US would not severely limit such exports.

Catching up on technology

Grotz believes the European Union may have "missed the opportunity to prepare for a potential economic war" with the United States and to better position itself for such challenges.

Grotz emphasised that maintaining competitiveness is crucial, and this can only be achieved "through innovation." He stressed the need for Luxembourg and Europe to focus on cutting-edge technologies such as Artificial Intelligence, data, and cloud computing. According to Grotz, Europe must aim to become a pioneer in these fields, both in research and in the application of these technologies within businesses.

"It is Luxinnovation's role to promote the adoption of new technologies and help companies quickly familiarise themselves with these tools to enhance productivity," Grotz said.

However, Grotz acknowledged that investment in these sectors remains significantly higher in the United States and China compared to Europe. He also pointed out that the European market is more fragmented, which poses additional challenges.

Despite these hurdles, Grotz expressed confidence in Europe's ability to catch up, particularly in research. "We still have very high-quality research outputs," he said, adding "Luxembourg should not be ashamed of its efforts." While the US and China invest heavily in a few targeted areas, "we spread our investments more widely across many countries. This is one area where we need to focus to become more competitive," Grotz explained.

He remains optimistic about Europe's potential, stating, "I don't think we've missed our chance. We are smaller than the US and China, so we must develop in specific niches. In these niches, we still have a chance to be as competitive as other markets."

Collaboration with industry leaders

Grotz emphasised the need for Luxembourg to collaborate with leading companies in key sectors. He highlighted the recent arrival of Google, which is set to open an office on Boulevard Royal in Luxembourg City, as a positive development. The office will initially employ around a dozen people.

Grotz pointed to three key areas of collaboration with Google. First, the tech giant has partnered with Luxembourg to develop a sovereign cloud, using Google's technology to ensure the protection of confidential data for companies and public administrations. Second, Google is collaborating with the University of Luxembourg on research initiatives. Third, the company is involved in a data centre project in Bissen.

Returning to the field

Grotz brings a wealth of experience to his new role, having spent 25 years as a high-ranking advisor at the Ministry of the Economy. During that time, he worked closely with various ministers and played a key role in developing new projects. Reflecting on his career, Grotz noted that he never grew bored in his previous role and enjoyed the dynamic nature of the work.

Now, as director of Luxinnovation, Grotz is excited to return to working directly with companies, much like he did at the start of his career when he was with the Chamber of Commerce and the Chamber of Skilled Trades and Crafts. "I have always loved the field of innovation," Grotz said.