Luxembourg, Sweden to Further Strengthen Financial Collaboration, Sustainable Investment

On Wednesday 18 and Thursday 19 May 2022, Luxembourg's Finance Minister, Yuriko Backes, traveled to Stockholm as part of a financial mission and took part in a seminar organised by Luxembourg for Finance (LFF), bringing together professionals from the Swedish financial sector as well as about 50 representatives of the Luxembourg financial centre who had traveled to Stockholm.

In her opening speech, Minister Backes underlined the important role of the European Capital Markets Union and financial centres in making the European Union (EU) more competitive and closing the investment gap with the United States (US) and Asia, which has deepened since the last financial crisis. Minister Backes said: “A strong and competitive European economy is not only a prerequisite for realising our net zero emissions ambition, but also for supporting the inevitable reconstruction of a war-torn Ukraine.”

The geopolitical and economic impact of the war in Ukraine was also one of the subjects that the Minister Backes discussed with Swedish Minister of Finance, Mikael Damberg, the day after the official submission of Sweden's candidacy for NATO. The ministers also discussed bilateral relations and their respective priorities at the Ecofin Council. Minister Backes commented: “As innovative and open economies and among the leading green financial centres in the world, Sweden and Luxembourg are natural partners and allies.”

Minister Backes also met the Minister for Financial Markets, Max Elger, for an exchange on the main projects in terms of financial regulation within the EU, as well as on financial sanctions and the risks of cyberattacks within the framework of the war in Ukraine.

With the latter, Minister Backes also took stock of the collaboration in the financial field and they examined the possibilities of strengthening it further.

Sweden is an important market for the Luxembourg financial centre. More than half of the international funds distributed in Sweden are Luxembourg funds. It represents the fifth market in terms of collection of insurance premiums for the Luxembourg life insurance sector. Several Swedish and even pan-Nordic banks and asset managers have established competence centres as well as their main investment fund platforms in Luxembourg.

Minister Backes held discussions with decision makers from major banks and asset managers in Stockholm. The discussions focused on the strategic priorities in Europe and Luxembourg of these actors, and more particularly their views on the financing of the climate transition, the Swedish financial sector being a pioneer in sustainable investment.