Credit to: Tax News : The Changing Face of Luxembourg Finance
Your your thoughts guys?
Quote
“Luxembourg is famous for two things: its steel industry and its rose cultivation industry”.
This quote from an Italian guidebook of the 1930s was uttered by Luxembourg’s Finance Minister Pierre Gramegna at the annual conference of the Luxembourg Directors’ Association on 17 June 2015[1].
The economic outlook of the tiny Grand-Duchy is quite different 80 years later. According to the latest OECD Economic Survey, 27 per cent of the value added in the Luxembourg economy is represented by the financial sector, compared to 10.5 per cent in Switzerland and 8.25 per cent in the UK. In the opinion of the OECD Secretary General Angel Gurría the Luxembourg financial sector “may have reached a size where its contribution to GDP growth might fade, and high dependence on one sector poses medium term risks”[2].
This quote from an Italian guidebook of the 1930s was uttered by Luxembourg’s Finance Minister Pierre Gramegna at the annual conference of the Luxembourg Directors’ Association on 17 June 2015[1].
The economic outlook of the tiny Grand-Duchy is quite different 80 years later. According to the latest OECD Economic Survey, 27 per cent of the value added in the Luxembourg economy is represented by the financial sector, compared to 10.5 per cent in Switzerland and 8.25 per cent in the UK. In the opinion of the OECD Secretary General Angel Gurría the Luxembourg financial sector “may have reached a size where its contribution to GDP growth might fade, and high dependence on one sector poses medium term risks”[2].
Your your thoughts guys?
A lot of these micro states do not have very diversified economies. If they were smart they would keep their banking secret and taxes low to keep the wealthy people in.
