Increasing competitiveness, technological innovation and further European integration are three of the key themes outlined in a paper on growing the grand duchy’s financial sector.
Luxembourg for Finance, the development agency for the Luxembourg financial centre, has unveiled its “Ambitions 2030: shaping finance for our future” report, presenting a comprehensive five-year strategy to enhance the grand duchy’s position as a leading global financial hub.
Founded in 2008 as a public-private partnership between the Luxembourg government and the Luxembourg Financial Industry Federation, the agency the plan on Monday 27 January 2025.
The strategy focuses on addressing global challenges, enhancing European competitiveness and solidifying Luxembourg’s role in shaping the future of global finance through four interconnected goals: connecting stability with opportunity, unlocking European competitiveness, shaping tomorrow’s finance and mobilising capital for sustainable growth.
Stability and opportunity
The report highlighted Luxembourg’s role as a trusted platform in the face of increasing global volatility. Strong governance, fiscal prudence and regulatory clarity were emphasised as foundations for its resilience. Luxembourg’s position as a hub for corporate banking, wealth management and life insurance was credited with fostering stability and enabling multinational corporations and financial institutions to flourish.
As the European Union’s primary gateway for global capital, Luxembourg’s business-friendly policies and regulatory framework were noted as critical for enabling cross-border financial services. LFF underscored its importance in shaping policies that balance the needs of Europe with global economic priorities.
European competitiveness
Luxembourg’s ambitions include deepening its role in European financial integration by serving as a bridge between global capital and the European economy. The report described the nation’s goal of enhancing the savings and investment union (SIU) to unlock savings and attract international investments. This would finance innovation, infrastructure and strategic projects essential to Europe’s economic growth.
Building on its position as the EU’s largest investment fund centre, Luxembourg aims to foster the growth of alternative funds, tokenised investments and digital finance. The nation’s strong capital markets infrastructure and securitisation framework were highlighted as cornerstones of this plan. Additionally, Luxembourg’s openness to international collaboration was deemed essential for expanding funding sources and addressing Europe’s economic priorities.
Innovation
LFF outlined its commitment to establishing the country as Europe’s hub for financial innovation by 2030. Efforts to leverage advanced technologies like artificial intelligence (AI), blockchain and distributed ledger technology (DLT) were noted as pivotal. These tools aim to enhance transparency and efficiency in financial operations, supporting the creation of new high-value services such as private equity advisory and tokenised funds.
The report mentioned the momentum in active exchange-traded funds (ETFs), facilitated by the Financial Sector Supervisory Commission (CSSF) new transparency regime. Luxembourg’s position as a leader in private asset domiciliation was also recognised as an advantage for future development.
A strong emphasis was placed on cultivating a skilled and multilingual workforce through strategic partnerships with academic institutions and tailored training programmes, ensuring a future-ready financial ecosystem.
Sustainable finance
Sustainable finance was identified as a cornerstone of Luxembourg’s financial strategy. The report noted that Luxembourg manages over €3.2trn in sustainable assets and hosts initiatives like the Luxembourg Green Exchange (LGX) and the Luxembourg Sustainable Finance Initiative (LSFI). These efforts aim to channel investments into projects that advance environmental and social progress.
LFF highlighted plans to expand its focus to emerging areas such as gender finance, biodiversity, and transition finance, while scaling blended finance solutions to maximise collaboration between public and private sectors. Innovations such as AI and DLT were cited as tools for enhancing transparency and accountability in sustainable finance, allowing investors to verify the impact of their investments in real time.
Vision for 2030
The report outlined Luxembourg’s long-term objectives to provide stability, foster innovation, drive European competitiveness and champion sustainability. Finance minister (CSV) that Luxembourg aims to empower businesses and investors to achieve shared success in an increasingly complex world. , CEO of Luxembourg for Finance, the nation’s role as a cross-border financial hub, noting that Ambitions 2030 is a roadmap to ensure Luxembourg continues to attract international institutions and drive investments into Europe’s priorities.
The full report is available .