Journée De L’Économie 2024, held at the Chamber of Commerce, hosted prominent figures from various sectors, including Minister Lex Delles, Minister of the Economy. The event underscored the importance of competitiveness in today’s economic landscape, highlighting recent trends, and the urgency of prioritizing initiatives for long-term economic prosperity.
The event opened with Francois Mousel, Managing Partner of PwC, highlighting the recent neglect of competitiveness as a priority, emphasizing its critical importance in light of current challenges.
“Looking at the competitiveness of a country, especially a small one like Luxembourg, it is of the highest importance and needs to be a topic that is actively pursued by the political decision-makers, with concrete actions planned behind, that things are moving, and that we are improving,” he said.
Key-note speakers expressed concerns over widening deficits and record-high public debt, raising doubts about the sustainability of the Luxembourgish economic model.
Adopting a new economic model
Particularly worrisome is Luxembourg’s low investment in research and development (R&D), representing less than 1% of GDP in 2022 compared to the EU average of 2.2%. Chamber of Commerce Director-General Carlo Thelen urged the adoption of a new economic model, emphasizing the need for a dynamic energy transition to sustain growth and well-being.
Productivity emerged as a central theme, with STATEC Director-General Serge Allegrezza emphasizing its pivotal role in driving economic prosperity.
“It’s very important to understand the challenges that Luxembourg has to be competitive. It’s the elephant in the room. In Luxembourg we have to get back to the mindset of former times, where the ministries must ask the question of what could be done to attract new activities into Luxembourg, to make sure that investors feel confident,” said Serge Allegrezza, Director-General at STATEC.
Despite Luxembourg’s advantageous position, there’s recognition that more can be done to enhance productivity and attractiveness.
Prioritising competitiveness
Minister Lex Delles took center stage in a speech that reaffirmed the government’s commitment to prioritizing competitiveness. In his address, Minister Lex Delles assumed a crucial role, emphasizing the unwavering dedication of the government towards prioritizing competitiveness as a cornerstone of Luxembourg’s economic strategy. By prioritizing competitiveness, the government aims to position Luxembourg as a resilient and adaptable player in the global economic arena.
A disparity is reflected in Luxembourg’s declining R&D intensity, as seen in IMD ranking reports. This occurrence was highlighted by several of the keynote speakers, throughout the event.
Industry leaders including Michele Cincera, Professor of Economics, Anne-Marie Solvi, CEO of Paul Wurth, Christophe Timmermans, CEO of SolarCleano, Pierre Zimmer, CIO of POST, and Emilie Allaert, CEO of Digital Minds, emphasized the critical role of government support for startups, especially in high-tech sectors, to drive innovation and uphold competitiveness during the second part of the event.
“I hope that the key takeaway from today is for people to realize that innovation is still possible in Europe and Luxembourg, that not all is bad, and that there is a lot of potential for improvement, and we are capable of achieving.”
Gaston Trauffler, Head of Industrial Policy, at FEDIL.
Journée De L’Économie 2024 provided a platform for stakeholders to address pressing economic challenges and chart a course for enhancing Luxembourg’s competitiveness. The event highlighted the urgency of adopting forward-looking policies to drive innovation, productivity, and sustainability, ensuring continued prosperity in an evolving global landscape.
