The party will convene as soon as possible to determine Gramegna’s successor. Photo: Mike Zenari.

The party will convene as soon as possible to determine Gramegna’s successor. Photo: Mike Zenari.

Finance minister Pierre Gramegna will step down from his position for personal reasons, the Democratic Party said in a press release on Tuesday.

The DP expressed its gratitude for Gramegna’s work noting his time as finance minister was marked by a consolidation of public finances, the implementation of a tax reform and putting in place an ambitious investment plan. 

The finance minister also launched Luxembourg’s with the aim to make the financial centre more environmentally friendly. He also led the Luxembourg finance ministry through the LuxLeaks, LuxLetters, OpenLux, CumEx, Panama Papers and Pandora Papers scandals. 

Most recently, he for plans to introduce a global minimum corporate tax agreed by the G7 in July. Gramegna is currently the longest-serving finance minister in the group of euro countries.  

“I am stopping because I decided that I wouldn’t join the 2023 elections and I told my party and I also want to tell voters,” Gramegna said during a televised interview with RTL on Tuesday evening, adding that the wanted to be transparent after having been asked frequently over the past weeks whether he would be running.

“I am not leaving for health reasons,” the finance minister said. “I always put the priority on my country and family always came after. I will become a grandfather next week and I would like to dedicate more time to my family, my children, who live far and wide in the world,” he said.

“It’s a well-considered step that I’m taking.” The new finance minister would be able to represent the party’s programme in the next elections, Gramegna said, adding that the job isn’t easy and that there usually aren’t many volunteers for the post. He has a candidate in mind, Gramegna said, but kept the name to himself.

But the 63-year-old said he would have harmed his party by continuing until the end of his mandate and departing just before the elections. He is giving the DP an opportunity to find a successor, he said. “I hope that people understand this.”

“I am doing this with heart and soul,” the finance minister said of his job of eight years. “I always try to find the common denominator between the three coalition partners. That’s my role as a former diplomat.”

Surprise move

“It’s a complete surprise for me,” said Carlo Thelen, who succeeded Gramegna as director general of the Chamber of Commerce, a post the minister held from 2003 until he joined the government in 2013. “We saw Pierre a week ago and he didn’t let on.” Finding a successor would now have to be at the top of the agenda, Thelen said. “Behind a minister there is an administration, that’s true, but it has to be strong and the conductor has to be good. Pierre Gramegna knew his files very well, was very efficient.”

Following his career as a diplomat, Gramegna took on the position of director general of the Chamber of Commerce in 2003 which he held until he joined the government in 2013. After the 2018 elections, Gramegna was re-appointed minister of finance in the coalition government formed by the Democratic Party (DP), the Luxembourg Socialist Workers' Party (LSAP) and the Green Party (Déi Gréng).

Gramegna pursued studies in law and economics at the Université Panthéon-Assas (Paris II), where he obtained a master's degree in civil law and a degree in economic sciences.

The DP will convene as soon as possible to determine Gramegna’s successor, the party said in Tuesday’s statement.

“He had told us of his desire to no longer be a candidate in the next legislative elections,” DP president Corinne Cahen told Delano’s sister publication Paperjam. “He had been thinking for a few days of resigning to leave visibility to another, and rejuvenate the political landscape,” she said. Cahen also serves on the government as family, integration and greater region minister. “We worked well during eight years, the collaboration was perfect. The party and Pierre have achieved great things, especially in consolidating public finances.”

Only last week, Gramegna presented an to lawmakers, pointing to a recovery despite the ongoing coronavirus pandemic. Luxembourg managed to maintain its triple A rating by all major credit ratings agencies throughout the crisis.

The surprise move comes as the , presented by the minister in October, is pending a vote in parliament before the end of the year. 

The loss of Gramegna comes as deputy prime minister Dan Kersch and social security minister Romain Schneider (both LSAP) are also with a press conference by the LSAP scheduled for Tuesday afternoon. The coalition last year lost minister of the economy Etienne Schneider (LSAP), who stepped down in February.

Justice minister Félix Braz, another founding member of the three-party coalition in 2013, was replaced in office following a 2019

“Shock! With Pierre Gramegna an excellent minister and great personality leaves the government,” said Marc Ruppert--former secretary general of the DP--on Twitter. “A builder of bridges and great expert, who will be missed in his function by the government and the country.”

(Additional reporting by Nicolas Léonard, Paperjam)

Updated on 30 November at 8.50pm to include comments by Pierre Gramegna.