Luxemburg has been an active country in European development for a long period of time. Its economy is externally focused and more than 85 percent of the production is exported. The country strongly supported the introduction of the euro and the enlargement of the European Union.
Luxemburg is now known to be a reliable economic and political partner on the European and international level. Its main advantage is its strategic location in Europe, the quality of transport, logistics and telecommunications infrastructure, availability of qualified multilingual workforce, political and social stability and attractive legal and tax-related frameworks.
Its geographical location in Europe, halfway between London and Paris and halfway between Paris and Frankfurt, has made it possible to access larger financial markets relatively easily by developing and expanding foreign relations and by attracting more foreign investors who want to sell their goods and services in the European market with its 450 Million inhabitants. Moreover, the country's central geographical position explains why many foreign industrial and commercial groups set up operations or do business in Luxembourg to enter the European and / or world market.
Given its many advantages, Luxembourg is the ideal gateway to access the new enlarged European market. Significant business opportunities and development potential is available for entrepreneurs and start-ups. Luxembourg's stable high-income economy with low unemployment and inflation has much to offer and welcomes consumer products. The recent diversification of the economy has also led to opportunities in finance and high technology.
Other EU countries take advantage of Luxembourg's strategic location, its proximity to other European capitals, major business centers and the presence of many European institutions. Luxemburg has also developed international trade relations with America, Asia and the Middle East.
It has an annual surplus equivalent to more than 10 percent of its GDP. These results are mostly related to the export of services. Altogether, Luxembourg has succeeded in establishing itself as a hub for international trade, not only in the financial sector, but also for industrial production and sales of goods and services.
Modern infrastructure and an effective communication are crucial for Luxembourg, which has a trade-focused economy and a leading logistics center in Europe. An international communication-network (roads, flights and railways) connect the country not only to large neighboring sites (Ruhr, Paris area, the port of Antwerp) but also to more distant markets.
Tony Harkén
Chamber of Commerce Luxembourg