AGP Executive Report

EU Summit: Luc Frieden said Luxembourg would keep backing Ukraine, warning that giving in to Russian aggression was not an option. EU leaders agreed to issue as few tourist visas as possible to Russians, while migration talks stalled and budget negotiations made no breakthrough. Foreign Policy: Xavier Bettel defended a planned import ban on goods from illegal Israeli settlements, calling it a response to breaches of international law, not a measure against Israel. Luxembourg Song Contest: A record 80 applicants auditioned for the 2027 contest, with performers judged on vocals, identity and stage presence; more than 300 songs have also been submitted. Digital Security: ADEM’s JobBoard was taken offline after an IT security incident, with an investigation under way. Parliament: Ana Correia Da Veiga and Gary Diderich were sworn in as MPs; Correia Da Veiga is the first member of Luxembourg’s parliament of Cape Verdean descent.

Foreign Policy: Xavier Bettel says Luxembourg’s planned import ban on goods from illegal Israeli settlements is a symbolic step, not a move against Israel, and is needed to uphold international law. EU Budget: Luc Frieden says negotiations on the bloc’s 2028–34 budget remain deeply divided, with no breakthrough and warnings against unchecked spending. National Politics: A new poll puts the governing CSV–DP coalition one seat short of a majority, while the ADR climbs to a record eight seats. Transport: Luxair’s new E195-E2 has entered service on its London City route, adding capacity between the two financial centres. Justice: Luxembourg is among the first signatories to a Council of Europe treaty aimed at making it easier to freeze and confiscate criminal assets, including cryptocurrency, across borders.

Jobs and Cybersecurity: ADEM’s JobBoard remains offline after a security incident detected on Wednesday. Jobseekers can use EURES, while employers cannot access candidate profiles; ADEM has filed a complaint. Housing: Buyers in a Dudelange development say they have waited nearly six years for apartments promised in 2023, with unfinished work and damage still reported. EU Budget: Talks ended without a breakthrough, with Luc Frieden saying Luxembourg is seeking a balance between ambitious EU spending and affordable contributions. Digital Finance: Luxembourg was among the first signatories to a Council of Europe treaty allowing cross-border seizure of criminal assets, including digital currencies. Animal Welfare: Veterinary inspectors halted unauthorised puppy-yoga sessions in Bonnevoie after earlier events went ahead without permits. Politics: A new poll suggests the CSV–DP coalition would lose its parliamentary majority, while the ADR would reach a record eight seats.

EU Budget: Leaders left their latest summit without progress on the 2028–34 EU budget, and some questioned whether a deal is possible by year-end. Fuel Relief: Luc Frieden said the government has not decided whether to extend the 5-cent-per-litre fuel cut beyond December; three-quarters of survey respondents support keeping it. Parliament: Ana Correia Da Veiga has become Luxembourg’s first MP of Cape Verdean descent. Emergency Planning: MPs criticized delays in wildfire alerts during Belgium’s High Fens crisis. Interior Minister Leon Gloden said Luxembourg still has no fixed plan for such fires. Business: MSH has launched Elucin, a Luxembourg-based company focused on employee-benefit captives. Space: Luxembourg-headquartered ClearSpace won a £61 million UK contract to remove two defunct satellites. EU Enlargement: Luxembourg hosted talks that opened two more accession-negotiation clusters for Ukraine and Moldova after Kyiv passed a law on minority-language education. Foreign Policy: Xavier Bettel said the government council would consider a bill to ban imports from illegal Israeli settlements.

Fuel Relief: Luc Frieden says the government has yet to decide whether to extend the 5-cent-per-litre fuel discount beyond December, despite strong public support. Ardagh Sale: A Luxembourg court has lifted an order blocking a potential sale of Ardagh Metal Packaging, allowing the company to resume preparations. Family Support: MPs are voting on higher family and back-to-school allowances from January 2027, including eligibility for children of cross-border workers’ partners. EU Budget: Frieden warned that talks on the bloc’s 2028–34 budget remain difficult, with a deal potentially pushed to 2027. Digital Sovereignty: MPs debated reliance on major technology providers and the cyber risks of service failures, while ministers pointed to existing open-source tools. Public Health: Luxembourg is among the highest consumers of psychotropic drugs, the National Addiction Prevention Centre says, with about 355,000 prescriptions issued annually. Parliament: Ana Correia Da Veiga was sworn in as Luxembourg’s first MP of Cape Verdean descent.

EU Enlargement: Luxembourg hosted EU talks that opened two negotiating clusters for Ukraine and 17 chapters for Moldova, bringing Chişinău to 24 of 33 chapters as it targets membership talks by 2028. Financial Centre: Insurance group MSH launched Elucin, a Luxembourg-based employee-benefits captive specialist. SCOR’s review identifies Luxembourg as home to 173 of Europe’s 347 licensed captives. Digital Policy: A tech-industry group estimates proposed EU cloud-sovereignty rules could cost Luxembourg €1,711 per worker over a decade—the highest figure in its study—though most of the projected bill depends on a scenario extending rules to private-sector workloads. Domestic Politics: A new poll found 76% of voters want the five-cent fuel discount extended if prices stay high; recent polling also points to a record showing for the ADR. Oligarch Dispute: Luxembourg’s role in the EU’s decision to delist Mikhail Fridman remains contentious as his $16 billion claim against the country continues.

EU Enlargement: Luxembourg hosted accession talks that opened two new negotiating clusters for Moldova, bringing 24 of 33 chapters into negotiation. Albania also provisionally closed its business and industry chapter at a meeting in the Grand Duchy, taking its total to four. Fridman Arbitration: Russian billionaire Mikhail Fridman has not withdrawn his €13.8 billion claim against Luxembourg, despite being removed from the EU sanctions list. His lawyer says he is still weighing his legal strategy. Politics and Public Services: A new RTL poll puts the ADR at a record 12.8% and eight seats. DP MP Gérard Schockmel also renewed calls for healthcare reform, warning that hospital rules give hospitals an advantage over independent doctors. Business and Finance: Luxembourg’s 2027 budget bill proposes corporate tax cuts and changes to capital gains and loss carryforwards; the CSSF has issued its first FAQ on fund tokenisation. Culture: CinEast opens today, with Bulgaria in focus through nine films, director events, concerts and an exhibition.

Defence and Jobs: Luxembourg’s Army is recruiting across more than 115 military and civilian professions, from cybersecurity and healthcare to logistics. It has about 1,380 personnel and welcomes applicants with any education level. EU Enlargement: At talks in Luxembourg, the EU opened two more accession clusters for Ukraine and Moldova. Ukraine’s minority-rights law helped lift Hungary’s block, while Albania completed negotiations on business and industry rules. EU Budget: Luc Frieden called negotiations over the 2028–34 EU budget “very difficult.” He backed investment in innovation, rejected higher corporate taxes and said environmental import levies or emissions-trading revenue could help fund the bloc. Politics: A new poll found 58% of voters think a rightward shift like those in Germany or France could happen in Luxembourg. A separate survey suggests the CSV-DP coalition would lose its majority, with ADR support at a record high. Business: The European Commission cleared a joint acquisition of Nestlé Waters of Luxembourg by Nestlé and US investor Platinum Equity.

EU Enlargement: Luxembourg hosted fresh accession milestones: Moldova opened talks on 17 chapters covering the internal market and competitiveness, while Montenegro provisionally closed three chapters, bringing its total to 21. EU ministers also approved the release of €4.2 billion in frozen funds for Hungary. Foreign Policy: Meeting in Luxembourg, EU foreign ministers approved nearly 1,600 new Russia sanctions listings and agreed to launch a support mission for Lebanon’s armed forces. Business Links: Vietnam and Luxembourg signed an agreement to deepen financial cooperation and attract international investment. The European Commission also cleared Nestlé and Platinum Equity’s joint acquisition of Nestlé Waters of Luxembourg. Local Affairs: Unions OGBL and ULL joined forces to push for better protections for delivery riders, citing long hours and alleged labour-law breaches. Political Scrutiny: LSAP MP Franz Fayot says there is no guarantee that Mikhail Fridman’s $16 billion compensation claim against Luxembourg is over, and is seeking access to the government’s legal opinions.

EU Enlargement: EU member states agreed in Luxembourg to open two more accession negotiating clusters with Ukraine and Moldova, covering the single market and competitiveness. The move follows Ukraine’s new protections for minority-language education. Russia Sanctions: EU foreign ministers approved nearly 1,600 new listings targeting Russia’s military-industrial complex, the bloc’s largest expansion since the invasion began. Kaja Kallas urged Washington to align with Europe’s sanctions policy as Russia continues striking Ukrainian energy sites despite Donald Trump’s proposed ceasefire. Luxembourg Economy: STATEC reports a modest rise in salaried jobs, led by public-sector growth. Financial Sector: Luxembourg’s CSSF has issued its first FAQ on tokenised investment funds, outlining its technology-neutral approach and encouraging firms to consult the regulator early.

EU Sanctions: Meeting in Luxembourg, EU foreign ministers adopted nearly 1,600 new listings targeting Russia’s war effort—the bloc’s biggest expansion since the invasion began. Ministers also questioned whether Russia was respecting a proposed energy ceasefire, after Kyiv reported fresh strikes. Ukraine’s EU Path: Ukraine expects the EU to open two accession negotiating clusters on 13 October, after parliament passed a bill expanding education rights for Hungarian and other national minorities. Foreign Minister Andrii Sybiha met his Hungarian counterpart in Luxembourg and urged Europe to keep pressure on Moscow. Luxembourg Economy: The government’s 2027 budget bill proposes corporate tax cuts and changes to capital gains and loss carryforwards. Separately, EU finance ministers reached a landmark deal on financial-market supervision at a meeting in Luxembourg. Housing: The government says it has no central data on how many homebuyers have been affected by halted construction or VEFA developer bankruptcies, and has announced no dedicated compensation plan.

EU Diplomacy: Foreign ministers meet in Luxembourg today, with Ukraine’s Andrii Sybiha set to press for tougher Russia sanctions, use of frozen Russian assets and progress on EU accession. Ministers will also discuss defence support and energy security. Border Checks: France is extending checks at its borders with Luxembourg and other neighbours until 30 April 2027, meaning cross-border travellers may continue to face identity checks. National Remembrance: Luxembourg paid tribute to resistance fighters and the 10,200 people forcibly conscripted into the Nazi army; Grand Duke Guillaume delivered his first speech for the annual commemoration. Business and Finance: The government’s 2027 budget bill proposes corporate tax cuts, while EU finance ministers reached a deal on stronger capital-markets supervision during meetings in Luxembourg. The government is also targeting its first blockchain bond, worth at least €1 billion. Local News: Seven in 10 residents say Luxembourg’s democratic culture needs strengthening, a new survey found. Students from Lycée français Vauban, meanwhile, won Luxembourg’s first silver medal at the FIRST Global robotics challenge.

Remembrance: Luxembourg honoured resistance fighters and forced conscripts on National Remembrance Day. Grand Duke Guillaume delivered his first address at the Kanounenhiwwel memorial. Democracy: Seven in 10 residents say Luxembourg’s democratic culture needs strengthening, a survey found; respondents highlighted disinformation and inequality. Student success: A team from Lycée français Vauban won silver at the FIRST Global Challenge robotics competition in South Korea, Luxembourg’s best result yet. EU finance: Ministers reached a deal in Luxembourg to strengthen oversight of major financial markets, giving EU watchdog ESMA a larger role. Budget and economy: The 2027 budget bill proposes corporate tax cuts and changes to capital gains and loss carryforwards, while Luxembourg’s economy contracted 0.9% in the second quarter. Digital finance: The government is targeting its first blockchain bond, worth at least €1 billion. International affairs: Foreign Minister Xavier Bettel condemned US sanctions against the International Criminal Court and called for a united European response.

International Law: Foreign Minister Xavier Bettel condemned US sanctions on the International Criminal Court, urging a united European response. EU foreign ministers are due to discuss the issue on Monday. European Finance: Finance ministers meeting in Luxembourg agreed to strengthen EU market oversight, giving ESMA direct supervision of some major cross-border operators. The changes still need legislative approval. 2027 Budget: The government’s proposal includes corporate tax cuts and changes to capital gains and loss carryforwards. It faces criticism over borrowing, with public debt projected to approach 30% of GDP; Luxembourg’s economy contracted 0.9% in the second quarter. Local Resilience and Transport: The government has unveiled a 72-hour emergency survival handbook. A new multimodal hub at Howald is expected to serve up to 10,000 commuters a day, while drought-driven low water is disrupting freight shipping.

EU Finance: Ministers meeting in Luxembourg reached a political deal to strengthen EU capital-market oversight and give ESMA direct supervision of some major cross-border operators; further legislative approval is needed. 2027 Budget: The government’s draft proposes cutting corporate tax rates and removing the 17-year cap on carrying forward losses. Opposition parties have questioned its direction as public debt is set to rise. Digital Finance: Luxembourg is targeting its first blockchain bond, worth at least €1 billion. Economy: GDP contracted 0.9% in the second quarter, while the central government deficit reached €339 million. Preparedness: The government has unveiled a 72-hour survival guide for residents. Local Services: Five banks are launching a shared, fee-free ATM network, with 237 machines planned by next year. Foreign Policy: Xavier Bettel condemned US sanctions against the International Criminal Court and called for a united European response.

EU Finance: Ministers agreed in Luxembourg to give ESMA direct oversight of major cross-border market operators, but carve-outs and limits on its powers drew criticism from the European Commission and ECB. The package still needs talks with the European Parliament. Digital Finance: Luxembourg plans a sovereign blockchain bond worth at least €1 billion, announced as part of its draft 2027 budget. Emergency Readiness: The government unveiled a guide to help households manage 72 hours without outside support during crises such as power cuts, floods or cyberattacks. Economy and Budget: Luxembourg’s economy contracted 0.9% in the second quarter. The 2027 budget has also prompted opposition concerns over its direction and rising public debt. Getting Around: The new Howald transport hub is designed to handle up to 10,000 commuters a day. Five Luxembourg banks are also preparing a shared, fee-free ATM network, with 237 machines planned by next year.