In response to a call to action voiced by DP MP André Bauler, Minister of Finance Gilles Roth emphasised how important the financial department is within Luxembourg, in addition to its influence on the global economy.

Gilles Roth, the Christian Social People’s Party Minister of Finance, responded to a call to action within the finance department voiced by André Bauler. Using many metaphors to describe the finance department, all members subsequently agreed on the importance of its place in Luxembourg.

Democratic Party MP André Bauler highlighted figures to illustrate the strong link between a country’s wealth and that of its population with the role of its finance sector. According to his findings, Luxembourg’s financial sector contributes approximately 25% to the national GDP (Gross Domestic Product). The sector directly employs around 65,000 people, not including the many indirect jobs it generates.

MP Bauler asserted that the Grand Duchy of Luxembourg should defend their position as one of the global and European leaders. The country has to stay attractive and innovative, in addition to always being a step ahead.

“Being a first mover signifies foregrounding innovation. It means we shouldn’t only focus on back end activities. It is much more valuable to discover new niches and activities that have a high added value”

One of the niches could be Neobanks, online-only direct banks, adds Minister of Finance Gilles Roth. It is an enormous market, yet it entails a certain risk in a situation of bankruptcy because of its deposit guarantee.

“We are currently working on it in the Ministry of Finance”, Gilles Roth explains. “However, it’s not as easy to navigate. We have to consider the potential risks, while also keeping in mind that in a world of constant digitalisation, even in the financial sphere, we cannot ignore the phenomenon of online banks as one of leading finance departments in the world. If we ignore progress, then we risk to be quickly replaced.”

The minister further underlined the necessary strengthening of cyber security, as attacks had increased by 76% in the first trimester. On average, 914 cyber attacks take place, every week, within the world of finance.

Meanwhile, 19 Luxembourgish insurance companies signed an agreement ensuring cyber risks.