Gilles Roth, the finance minister (CSV), outlined his legislative agenda during the Cross-Border Distribution Conference, held at the European Convention Center in Kirchberg, 16 May 2024. Library picture: Gilles Roth is seen speaking at the Finance Awards, 21 November 2023. Photo: Eva Krins/Marie Russillo/Maison Moderne

Gilles Roth, the finance minister (CSV), outlined his legislative agenda during the Cross-Border Distribution Conference, held at the European Convention Center in Kirchberg, 16 May 2024. Library picture: Gilles Roth is seen speaking at the Finance Awards, 21 November 2023. Photo: Eva Krins/Marie Russillo/Maison Moderne

Moves are underway to maintain Luxembourg’s economic competitiveness and the state budget will start getting back on track in 2025, according to the finance minister.

A bill to boost blockchain technology in the grand duchy’s funds sector is in the works, Luxembourg’s finance minister has told asset management professionals.

The government will submit legislation to parliament “in the coming months” designed to make Luxembourg a competitive market for the use of blockchain technologies in the financial sector, (CSV) stated at an industry event in Kirchberg.

The legislation will address the rules around the digitalisation of assets and tokenisation, technologies which will “change how funds are sold and distributed,” Roth said.

Roth was speaking at the Cross-Border Distribution Conference, organised by Deloitte and Elvinger Hoss Prussen with FT Live, on 16 May 2024.

In his keynote address, Roth noted that Luxembourg implemented the EU’s retail investment fund directive nearly 36 years ago. With Ucits funds, a large portion of them domiciled in the grand duchy, exported to more than 70 jurisdictions worldwide, he called Ucits “probably the most successful export product” created by the EU.

But that is “no reason to rest on our laurels.” The government elected last year, he stated, aimed to improve Luxembourg’s competitiveness, as well as “restore the purchasing power of households and ensure sound public finances.”

Legislative agenda

The government’s budget strategy, Roth claimed, will address the grand duchy’s “public debt trajectory”. He expects that revenues will exceed spending in 2025. However, budgetary action will be implemented in a steady manner, as “companies need to find a stable and predictable environment in Luxembourg.”

The housing package to parliament earlier this week was “one of several measures” to tackle the property market. He said that he would introduce tax legislation that would “lower overall housing costs for younger employees.”

During his speech, Roth repeated unveiled earlier, including lowering corporate income tax by one percentage point starting next year, with the aim of moving rates towards the OECD average over the medium term; revamping the profit-sharing scheme and expat tax regimes; and .

Push back on protectionism

Luxembourg’s government would “combat internal barriers” in the European single market, he said. “We should not be distracted by issues such as the decentralisation of” financial regulators. European leaders should “pursue convergence of national supervisors” with more aligned implementation of financial rulebooks and policies.

Roth told the fund ecosystem professionals: “At a time of increased protectionism, we need to work together to promote free trade and open markets.”

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