On Saturday, Deputy Prime Minister and Minister for Foreign Affairs Xavier Bettel spoke with our colleagues from RTL Radio, addressing topics ranging from national politics to international trade and current geopolitical tensions.
Foreign Minister Xavier Bettel addressed the highly tense geopolitical climate in multiple regions. Like many airlines, Luxair has postponed flights to the Middle East due to the heightened tensions with Iran. Bettel stated he could not precisely predict developments but observed that the United States is “massively strengthening its presence in the region.” He warned that any US attack would “certainly have repercussions.”
Bettel strongly criticised Iran’s religious-authoritarian regime, advocating for the country’s Revolutionary Guards to be added to the European list of terrorist organisations.
Turning to Europe, the Foreign Minister was unequivocal that Ukraine must not be abandoned under any circumstances. He stated his observation that while the Ukrainian side demonstrates a willingness for peace and compromise, the Russian side does not. Bettel expressed regret that no EU representative is present at the negotiations for a potential end to the war in Abu Dhabi, arguing that EU chief diplomat Kaja Kallas should have participated. The EU, however, was not invited to the talks.
Bettel also expressed regret that the European Union often hinders its own progress. He described a systemic challenge: “To make reforms in the EU, you need the agreement of those who don’t want reforms.” This dynamic, he noted, is exemplified by Hungarian Prime Minister Viktor Orbán, who has blocked numerous initiatives for years. As a result, Bettel characterised the EU as slow and a “featherweight” on the global stage, weakened by its frequent inability to speak with one voice. He insisted that the Union’s strength lies in unity, asserting that a cohesive bloc of 27 member states could command respect, even from figures like Donald Trump.
On relations with the United States, Bettel argued that Europeans should avoid being subservient to the US President. He clarified his own stance by distinguishing between deference and diplomacy, noting that he himself has sought contact with Trump at official events. “There is a difference between being subservient and being polite”, Bettel stated, adding that he would remain polite even when seeking confrontation. He cited a recent conversation with US Ambassador Stacy Feinberg, to whom he conveyed that significant damage had been done. In response, Feinberg reportedly told him that the US President is not a politician, but a businessman. In Bettel’s view, however, every side must be able to gain something from a deal.
Shifting to trade, Bettel reaffirmed his support for the EU-Mercosur agreement with South American states. He acknowledged, however, that in view of legal doubts from the European Parliament, the European Commission is unlikely to take provisional measures to implement the deal, despite having the legal capability to do so. “The issue is probably too explosive”, he conceded. Dismissing criticisms of the pact, Bettel stressed that controls and sanitary criteria would be stringent and fully aligned with European standards.
Regarding the prospective Google data centre in Bissen, Bettel offered no announcements, stating it was still too early. He expressed hope, however, that 2026 would bring concrete developments, confirming that discussions with Google’s management are ongoing. In broader terms, Bettel emphasised that Luxembourg, as a trade-dependent nation, must remain open to international companies – including, he added, those in the security sector.
Minister Bettel stressed the importance of securing such business for Luxembourg itself, noting he would not want to see them subsequently locate in nearby Arlon or Thionville. He revealed that the government is in contact with “a large European producer” interested in establishing equipment production in Luxembourg. This output, he explained, could serve both the Luxembourg Army and the commercial export market.
Bettel reiterated his conviction that Luxembourg remains an attractive location for international companies. He acknowledged a common initial complaint about the wage indexation system but added that businesses quickly recognise it as a key guarantor of social peace.
Deputy Prime Minister Bettel emphasised that social peace is of paramount importance. While acknowledging the unions’ capacity for mobilisation last year, he expressed optimism that discussions between social partners can now return to being peaceful and productive.
In this context, he offered a defence of the former CSV Labour Minister, Georges Mischo, who resigned at the end of last year. Bettel described Mischo as “an upright person” who does not threaten people, suggesting the breakdown in dialogue was not solely his fault. With the new Minister of Labour, Marc Spautz, Bettel believes the necessary chemistry for effective dialogue has been restored.
Bettel expressed hope that neither side in the social dialogue would demonise the other. He argued that competitiveness does not require employees to be worse off, just as workers cannot thrive if employers struggle. Defining his political goal as fighting injustice, Bettel concluded, “I am intolerant of intolerance.”
Bettel, drawing on his experience as a former Prime Minister and Mayor of Luxembourg City, acknowledged the numerous injustices in the housing market. To counteract the housing crisis, he questioned whether urban areas could not be developed more densely and with greater height in the future.
He also advocated for a specific policy measure: a tax on properties left vacant for extended periods. As far as he is concerned, this tax could be designed to double annually, creating a significant financial incentive – or “hurt” – for landlords to bring empty properties onto the rental market.
While stressing that more construction is essential, Bettel pointed to the competing demands for Luxembourg’s limited land, which is needed not only for housing but also for agriculture, industry, and commerce.
