L-R: Olaf Scholz (Germany); Adrian Hasler (Liechtenstein); Pierre Gramegna (Luxembourg); Ueli Maurer (Switzerland); Eduard Müller (Austria); Credit: © SIP / Jean-Christophe Verhaegen, all rights reserved

Luxembourg hosted the annual meeting of the German-speaking finance ministers on Monday 26 and Tuesday 27 August 2019, in Mondorf-les-Bains.

On this occasion, Luxembourg's Minister of Finance Pierre Gramegna received his counterparts Olaf Scholz, Minister of Finance of the Federal Republic of Germany, Ueli Maurer, President and Minister of Finance of the Swiss Confederation, Edouard Müller, Minister of Finance of the Republic of Austria, and Adrian Hasler, Head of Government and Minister of Finance of the Principality of Liechtenstein.

At this informal meeting, the Finance Ministers discussed the latest developments in European and international taxation, as well as the challenges and opportunities posed by digitisation for the financial sector and the mobility of cross-border workers.

The discussions particularly focused on the evolution of European and international taxation. The ministers had an exchange of views on the projects currently being discussed in the G20 and OECD countries on corporate taxation and their possible impact on the five countries represented. They focused more specifically on the tax challenges posed by the digital economy and the need to find global solutions, particularly at the OECD level.

The theme of digitisation was also discussed in terms of its impact on financial services. Thus, the ministers focused on digitisation as a challenge and driver for financial markets, especially in traditional sectors, such as banks and insurance. In this context, the German-speaking ministers addressed the future of cryptocurrencies and in particular Facebook's "stable cryptocurrency" project "Libra". In this regard, they assessed the regulatory and monetary challenges facing governments and the financial sector.

In addition, the first day of the meeting took the participants on a visit to Schengen and its European Museum, where they were greeted by Mayor Michel Gloden and former mayor Roger Weber. In his address, Pierre Gramegna stressed the importance of the Schengen area, to which the five countries represented belong, and said that "the right to free movement in the European area has made it possible to develop the mobility of people and workers, and cross-border work is an important factor of economic development in each of our countries".

Indeed, the ministers also discussed the topic of the integration and mobility of cross-border workers during the working meetings. In particular, they looked at several mechanisms that could improve cross-border mobility.

Pierre Gramegna concluded: "The meeting of German-speaking finance ministers is an important and unique platform, bringing together EU and non-EU countries with different economies, all of which have major financial centres. In a complex and changing environment, this informal, annual meeting provides an opportunity to exchange experiences in tax and financial policy and to learn about the major topics of the G7 and G20 to better address the challenges ahead".

Austria will host the next meeting in 2020.