In addition, ten existing embassies and consulates will receive reinforcements from the Ministry of Finance. Deputy Prime Minister and Foreign Minister Xavier Bettel, together with Finance Minister Gilles Roth, made the announcement at a joint press conference. They emphasised that these decisions were shaped by evolving geopolitical circumstances as well as the economic realities facing Luxembourg.
Despite concerns over a shifting US strategy and tensions related to Venezuela and Greenland, the CSV‑DP government in Luxembourg has reaffirmed its intention to maintain and even strengthen ties with the US. Finance Minister Gilles Roth noting Washington’s role as Luxembourg’s main trading partner and the importance of cooperation for the financial centre. Xavier Bettel has underlined the value of diplomatic engagement.
He pointed out that Luxembourg did not close its embassy in Russia despite the war in Ukraine, arguing that breaking off dialogue would be counter‑productive. Bettel also emphasised Luxembourg’s declaration of solidarity with Denmark after recent US rhetoric concerning Greenland, saying that territorial integrity must be defended regardless of economic interests.
Recent changes to Luxembourg’s diplomatic network include the planned closure of three embassies in Africa, namely in Mali, Burkina Faso, and Niger, because the Grand Duchy is no longer welcome there, according to the Foreign Minister. New embassies are set to open in Kenya, South Africa and Singapore, and consulates are to be established in Hong Kong, Mumbai, São Paulo, and Austin in the United States.
To strengthen its presence abroad, Luxembourg will also second staff from the Ministry of Finance to key global cities: in the US alone, the cities receiving additional staff include Washington, New York, San Francisco, and Austin. Singapore, Hong Kong, Mumbai, São Paulo, London as well as Switzerland were also mentioned in the list of places to promote the respective financial centres and respond to competition from hubs such as Ireland, London and Jersey.
Seven new diplomatic posts will be advertised in the coming weeks, with the expansion of the network costing an estimated €26 million over the next few years, €11 million in the next budget year. Ministerial officials maintain that this investment will ultimately attract more economic activity to the country.
On broader regional policy, Bettel has suggested increasing the use of non‑resident ambassadors and rotating diplomats more frequently to keep them connected with Luxembourg’s perspectives. He also announced that, if Luxembourg establishes a diplomatic mission in the Middle East, it would aim to support a two‑state solution by opening offices both in Israel and in Palestine, in addition to Luxembourg’s existing trade and investment office in Tel Aviv.
