Luxembourg Trumpets Financial Centre's Big Ambitions

Editorial Staff

29 January 2025

(ALFI) told this news service that harnessing Luxembourg’s cross-border qualities and expertise can help tackle issues such as underinvestment in financing for the real economy and the provision of retirement savings.

In Europe, €14 trillion ($14.7 trillion) of household savings, approximately 41 per cent of total savings, are held in cash accounts and deposits. This contrasts with the US, where only about 25 per cent of household savings are in similar forms to finance the real economy, digital, and energy transitions – but also socially, Serge Weyland, ALFI chief executive, has said. In total, European asset managers manage €17 trillion in funds, with €4.5 trillion exported outside Europe.

European policymakers, including those attending the annual World Economic Forum conference in Davos, Switzerland, last week, have become familiar with the refrain that the European Union suffers from excessive regulation and tax, hobbling economic growth when compared with the US.

The Luxembourg for Finance report singled out competitiveness as an important policy area.

“Luxembourg aims to play a critical role in driving the EU’s competitiveness over the next five years by positioning itself as the bridge between global capital and European opportunities. By 2030, Luxembourg seeks to deepen its role as a key enabler of the Savings and Investment Union (SIU), unlocking untapped savings and attracting international investments to fund innovation, infrastructure, and strategic projects that are essential for Europe’s growth,” it said.

“Building on its expertise as the EU’s largest investment fund centre and dominant hub for private assets, Luxembourg aspires to expand its leadership in facilitating cross-border investments, creating a unified European capital market where projects can thrive.

“The financial centre’s ambitions include fostering the growth of alternative funds, tokenized investments, and digital finance solutions that enhance Europe’s ability to attract global capital and remain competitive in an interconnected world,” it said.