Norbert Becker, with a diverse background as a banker, insurer, tax consultant, and manager of various companies, boasts a lengthy biography and offers valuable insights on topics concerning the financial sector and the economy.
Becker considers himself to be a liberal, and has previously provided political advice to the DP while refraining from direct involvement. He described the new DP-CSV coalition, now led by Prime Minister Luc Frieden, as positive, believing it could result in a revived emphasis on economic policies.
After spending numerous years working for the audit firm Arthur Andersen in the USA, Becker reflected that his time abroad provided him with a unique perspective, allowing him to view Luxembourg from afar.
The 70-year-old described Luxembourg as a “land of milk and honey,” emphasising its prosperity. However, he expressed concern about the tendency of people in the country to criticise everything and cautioned against those advocating for “degrowth” or a halt to growth, as he believes it could regress Luxembourg into a “potato state.”
Indeed, he states that Luxembourg faces tough competition from abroad, especially when it comes to funds. Ireland, for example, is one such competitor, and Luxembourg must make sure it does not fall behind. Unlike Luxembourg, Ireland imposes no registration tax and lacks indexation. The last index tranches alone have resulted in an 8 percent rise in personnel costs, directly impacting funds’ profitability in the Grand Duchy.
In the competition to attract talent, there is significant rivalry with foreign countries. Individuals naturally weigh how much net income remains from gross salary; if it’s higher elsewhere, they may choose not to come to Luxembourg. Becker criticised the LSAP, and especially former minister Dan Kersch, for opposing various tax advantages for those wanting to come work in Luxembourg. Additionally, a significant problem for newcomers is housing.
Becker suggests a gradual reduction of business taxes to 15%. Luxembourg can also not be considered to be a haven for wealth management. The multitude of financial activities and deposits in Luxembourg is a result of the ability of banks and financial service providers to draft contracts for almost any jurisdiction worldwide - funds deposited in Luxembourg banks or life insurance have always been taxed based on their origin. However, Becker also stated that: “Of course, if a country imposes taxation rates of 50, 60, or 70%, people will inevitably seek alternative channels.”
When it comes to regulations, Becker acknowledged that there was a need to strengthen them after the financial crisis of 2008-2009. However, he voiced concerns that these might have gone too far, especially in terms of credit, potentially impeding economic growth. He advocates for ongoing adjustments to banking regulations to strike the right balance.
