Behind the glasses of champagne and the petits fours at the Cercle Cité, EY was there primarily to tell a story that was far more political than economic: that of a Europe which is gradually falling behind in the global competition for investment, but also that of a Luxembourg which is attempting to turn its small size into a strategic advantage. Whilst foreign investment projects have fallen by 24% in Europe since 2017, the Grand Duchy has gone from 25 projects in 2021 to 35 in 2025, with a growing focus on finance, European headquarters, digital services and artificial intelligence.
For 
Brice Lecoustey, an asset servicing leader at EY, the phenomenon goes far beyond mere economic conditions. “Capital isn’t leaving Europe entirely. It’s simply becoming much more selective, much more concentrated and much more strategic in the way it’s deployed,” he explains. Projects related to artificial intelligence have surged by 96% in Europe in a year, and those related to data centres by 127%. Against this backdrop, Luxembourg is seeking less to attract volume and more to position itself in high value-added activities, particularly in finance, AI, space and defence.
This strategy appears to be resonating with US investors. The US Ambassador 
Stacey Feinberg She explained that she had met with several US artificial intelligence companies interested in establishing a European presence in Luxembourg. “I’ve met with three AI companies this week and I think they’re going to set up their European headquarters here,” she said. She also sees the Grand Duchy as a future technology hub in the fields of space, defence and critical technologies, citing in particular the country’s early investments in the space economy.
The government is now seeking to consolidate this image of stability in a more volatile geopolitical environment. During the roundtable organised by EY, the Prime Minister 
Luc Frieden emphasised housing, international schools, security, infrastructure and taxation as the cornerstones of the country’s future appeal. However, the study also shows that there are still many weaknesses: 61% of investors now consider access to housing to be Luxembourg’s main infrastructure constraint, and only 54% of investors surveyed still plan to expand their operations there in the coming months.
