Japan, Luxembourg Explore Potential Collaboration in Air Services, Sustainable Finance & Space Sector

Luxembourg's Prime Minister Xavier Bettel and the Minister of Finance, Yuriko Backes, paid a working visit to Tokyo, Japan from Monday 17 to Wednesday 19 October 2022.

During this visit, Luxembourg's Prime Minister met his Japanese counterpart, Prime Minister Fumio Kishida. The two prime ministers discussed the many areas of collaboration that already exist between Japan and Luxembourg and identified the areas in which the potential for development is great, such as air services, sustainable finance and the space sector.

Prime Minister Xavier Bettel noted that "cooperation in the company Ispace, a cutting-edge company in the field of space robotics and the analysis of data collected on the Moon, seems particularly promising to me, because it is a cooperation that is resolutely forward-looking, and it is also from this angle that I see relations between Luxembourg and Japan". The prime ministers concluded the meeting with their recommitment to deepening Japan and Luxembourg's long-standing friendship.

The exchange also focussed on the common challenges that Luxembourg and Japan are facing on a global and regional level, in particular the war in Ukraine and its consequences on energy supply and the overall economic situation.

Luxembourg's Prime Minister also spoke with Japan's Minister for Foreign Affairs, Yoshimasa Hayashi, and other members of the Japan-Luxembourg Parliamentary Friendship League. During this meeting, participants noted once again that the excellent state of bilateral relations between Luxembourg and Japan is also reflected at the level of cooperation at the international level, where the two countries are fervent defenders of a world order based on the principles of international law with the United Nations (UN) at its centre.

The agenda also included a courtesy visit to Nobuyuki Hirano, Vice Chair of Keidanren and Chair of its European Committee. Keidanren is the federation of large Japanese companies, which brings together under its umbrella all the jewels of Japan's industry and financial sector. Prime Minister Xavier Bettel reiterated the excellent conditions that Luxembourg offers to Japanese companies, particularly in terms of fintechs and sustainable finance and recalled that Luxembourg hosts one of the best infrastructures in terms of data parks in Europe.

Moreover, Luxembourg's Prime Minister took advantage of his stay in Japan to meet the wife of the late Japanese Prime Minister Shinzo Abe to present her with an award to thank her for the support she gave her husband throughout his career.

The working visit ended with a reception in honour of the visit of Luxembourg's Prime Minister and Finance Minister in the presence of members of the Luxembourgish community living in Japan and key representatives of the Japanese private sector. Prime Minister Xavier Bettel stated that Luxembourg is delighted to see relations with Japan develop and grow. In this context, Luxembourg is proud to participate with its own pavilion in the Expo 2025 Osaka, which will be an opportunity to introduce Luxembourg to the Japanese public and vice versa.

Luxembourg's Minister of Finance, Yuriko Backes, met with her Japanese counterpart, Shunichi Suzuki. The two ministers took stock of the global macroeconomic situation, the war in Ukraine and the joint response of the European Union (EU) and Japan, as strategic allies, to Russian aggression. Minister Backes also highlighted the long-standing partnership between Japan and Luxembourg in the financial sector. The two ministers agreed on the potential for strengthening bilateral relations in this area.

Six Japanese banks and three Japanese insurers have established their European competence centres in Luxembourg, while fund promoters of Japanese origin represent the largest market share of funds domiciled in Luxembourg among Asian countries. In this context, Luxembourg's Finance Minister had meetings with several high-level officials from banks and insurers, in particular to discuss priorities for the future development of their activities in Europe and Luxembourg.

Minister Backes and Bank of Japan Governor, Haruhiko Kuroda, discussed the impact of inflation and the energy crisis on the global economy, as well as fiscal and monetary responses to this unprecedented situation.

Minister Backes said: "Japan and Luxembourg are natural allies and enjoy a long-standing friendship. The first Japanese banks established themselves in Luxembourg in the 1970s and the relations between our financial sectors have gone from strength to strength since then, including most recently with the decision of three of Japan's largest insurance groups to establish their European headquarters in our country. These are solid foundations that offer significant potential for further developing financial relationships, whether in the area of sustainable investments, new insurance products or alternative funds".