Luxembourg Government Intends to Recognise State of Palestine

On Monday 15 September 2025, Luxembourg's Prime Minister, Luc Frieden, and Deputy Prime Minister and Minister for Foreign Affairs and Foreign Trade, Xavier Bettel, informed members of parliament (MPs / deputies) of the government's intention to recognise the State of Palestine.

According to the Chamber of Deputies, Prime Minister Frieden emphasised that this was an intention and that the decision would be formalised in New York during an international conference dedicated to implementing the two-state solution for Palestine and Israel.

Facing members of the parliamentary Foreign and European Affairs Committee, Luc Frieden and Xavier Bettel presented their arguments to MPs. The prime minister described the intended recognition as a "99% decision", noting that it could still be influenced by events in the coming days. The ministers underlined their desire to formalise this decision in New York, on the sidelines of the international conference co-chaired by France and Saudi Arabia. They recalled that several other countries are expected to take the same decision as Luxembourg next week.

During the discussions, MPs questioned the two ministers about the government's motivation for recognising Palestine. Prime Minister Frieden said the two-state solution as an ultimate goal was becoming increasingly distant, hence the government's decision to send a "strong" signal reaffirming its support for a two-state solution. The ministers added that several European and other countries sharing the same fundamental values ​​should decide to recognise Palestine as a state at this international conference - several countries doing so together would have a greater impact than if Luxembourg were to act alone.

MPs also asked the ministers about possible Luxembourg sanctions against Israel. Minister Bettel confirmed that his teams are currently analysing the issue.

Most opposition MPs welcomed the government's decision in principle, while some expressed surprise at what they saw as a reversal of position. Others raised questions about the concrete impact this decision will have on the ground.

Another topic addressed was the CSSF's decision to authorise the listing of Israeli government bonds (Israel Bonds) in Luxembourg. Luc Frieden and Xavier Bettel underlined that this was a decision taken by an independent authority, rather than a political one. The matter will be further discussed within the parliament's Finance Committee, in the presence of the supervisory ministry and representatives of the CSSF, on Tuesday 16 September 2025.