Both of Lafo and of L3A are confident that the CSV-DP coalition will be a business-friendly one. “I think we’re pretty comfortable with what has happened over the election, that particularly the CSV was at the start of bringing Luxembourg into the international financial community, and the DP has continued that trend,” explains Dundon, adding that he thinks “the right cards are on the table.”

Rapallino adds, “I think it’s a good team to make Luxembourg great again. The DP could be the right partner for that.”

Regulatory burdens

The Lafo chair says the regulatory burden has increased a lot in the past years. “Of course, we have to stick to every EU regulation, but not more,” says Rapallino. “When we look at the neighbouring countries, some of [them] are doing better than us.”

Dundon adds, “It’s an ever-increasingly world of complexity around Luxembourg, and I think Luxembourg, as it has always done in the past, has an opportunity to shine”--whether that’s through technology, operating models, reporting, etc.

He calls on the grand duchy to find ways to do so efficiently so the international investing community will look to the grand duchy as an example. “And I think that’s the Luxembourg 2.0--how can we now move into, ‘let’s accept it, let’s not fight this, but let’s find a way that we’re going to be extremely efficient.’” Dundon cites the recent announcement of the by the Luxembourg House of Financial Technology and outgoing finance minister (DP) as one such positive initiative.

Another area where the L3A president would like to see more support is in the government “bringing sense” to Atad 3 discussions.

“As the leading centre for alternative funds in Europe, we need to ensure that the new regulation is sensibly implemented and does not drive people away from investing in alternative assets in Europe,” Dundon says. “One clear example of this is ensuring that legal entities under Luxembourg fund structures--which are set up to ensure underlying investors are no worse off investing through the fund structure than investing direct--are not subject to the regulation.”

Social considerations

Social stability considerations, like housing, will be key to attracting and maintaining talent in Luxembourg, Rapallino says. The former tax partner at Deloitte says its difficult to keep talented newcomers at times because they aren’t necessarily in a position to find an affordable place to live.

He adds that while Luxembourg wants to develop new industries, the financial sector is still one of the key components to the success of the country. “Of course, we have to make sure that we have fair treatment for each and every person living in Luxembourg, for people crossing the borders, from a tax and a legal perspective.”