Politico reports that the US embassy in Luxembourg is among ten missions proposed for permanent closure under a sweeping State Department cost-cutting plan, raising concerns over America's diplomatic footprint in Europe.

The US embassy in Luxembourg is among ten diplomatic missions recommended for permanent closure, according to a confidential State Department proposal obtained by Politico. The plan, attributed to the office of the Under Secretary for Management, is part of a broader initiative to reduce the State Department's budget by nearly 50%.

According to Politico's daily national security newsletter, the embassies slated for closure include those in Eritrea, Grenada, Lesotho, the Central African Republic, Luxembourg, the Republic of Congo, Gambia, South Sudan, Malta, and the Maldives. Under the proposal, diplomatic responsibilities in these countries would be managed by US embassies in neighbouring nations.

For instance, the embassy in Italy would oversee Malta, while the embassy in Nairobi, Kenya, would cover Eritrea.

These proposed closures and reductions are part of a larger strategy to streamline operations and cut costs within the State Department. As of now, the department has not publicly commented on the proposals.

The potential closure of the US embassy in Luxembourg is particularly noteworthy given the country's strategic location in Europe and its role in international finance and diplomacy. The embassy has also faced scrutiny in the past; a 2022 State Department Inspector General report criticised the management of the embassy, citing issues such as excessive housing costs and high staff turnover.

Since the departure of Ambassador Thomas M Barrett after President Trump's second inauguration, the US embassy in Luxembourg has been led by Chargé d'Affaires Michael Konstantino. Trump in December 2024 named businesswoman Stacey Feinberg as Barrett's successor, though this appointment has now been thrown into question.