“Priority number one lies with sustainable finance,” said Mackel. “That’s huge.” Luxembourg can be a centre of excellence as a regulatory and compliance nerve centre, he argued, as long as it can work hard in 2023 and beyond to digest and implement the whole EU regulatory framework. “We need to check whether a fund is doing what it says on the tin.”

For alternative investments, he acknowledges that the volatile macroeconomic environment will slow deal flow. “There will be a higher interest rate on the debt raised. That will have an impact on deal volume in private equity and real estate which will affect the volume of assets under management in Luxembourg alternative funds.”

However, Mackel views this as a dampener on growth rather than a diminishment of Luxembourg’s role. “People still believe in Europe,” said Mackel, “and at times of inflation, people want yield.”

One of the challenges for 2023 will be talent. “We need to provide an excellent workforce by bringing people in from outside and massively investing in the training of people.”