Luxembourg Finance Minister Stresses Need for Strong & United EU in Age of Permacrisis

Luxembourg's Minister of Finance, Yuriko Backes, travelled to Madrid in Spain from Wednesday 1 to Thursday 2 June 2022 for a financial mission as well as a meeting with Spain's First Deputy Prime Minister and Minister for Economy and Digitalisation, Nadia Calviño.

Spain, the fourth largest economy in the European Union (EU), is a growth market for the Luxembourg financial centre, with several Spanish banks and asset managers having strengthened their presence in the Grand Duchy in recent years. Luxembourg investment funds represent more than half of the international funds distributed in Spain and their number increased by another 5% in 2021.

In her opening speech at an event organised by Luxembourg for Finance, bringing together more than 200 professionals from the financial sector, Minister Backes highlighted the important role of financial centres, particularly cross-border ones, for the financing of the European economy and for the success of its green and digital transformation. Luxembourg's Finance Minister also recalled that "in the era of permacrisis, the world needs more than ever a strong and united European Union which favours multilateral solutions".

The EU's common responses to current challenges, including the economic impact of the war in Ukraine, were key topics addressed by Minister Backes during her meeting with her Spanish counterpart, Nadia Calviño. The two ministers discussed their priorities within the Eurogroup and the Ecofin Council, but also bilateral relations between Spain and Luxembourg, particularly in the financial field. Minister Backes commented: "While our economic structures may differ, Spain and Luxembourg face similar challenges in transforming their economies and making them more resilient and fit for a new digital era. It is important that we maintain regular dialogue and share best practices, especially in key areas such as sustainable investing".

Luxembourg's Minister of Finance also visited the "Escuela Superior de Administración y Dirección de Empresas" (ESADE) at the invitation of the prestigious Spanish university for an interview on the economic challenges of the EU and the role of the financial sector. Minister Backes pointed out that the financial sector has evolved considerably over the past decade and today requires a wide range of skills, from lawyers to economists and from programmers to sustainability experts. The financial sector presents many career opportunities for young professionals, she added.

Finally, Minister Backes had discussions with decision makers from major banks and asset managers in Madrid. Discussions focused on the development of their activities in Europe and Luxembourg, as well as on their strategic priorities in terms of innovation and sustainable financing.