Guillaume Meyer: When did you leave Luxembourg?
François Trausch: I left when I was 18. Growing up in the 1970s and ’80s, the University of Luxembourg was not as developed as it is today. It was common for students to go abroad for higher education. In my case, with part of my family in Paris, moving here was a natural choice.
Was it a difficult decision?
Not at all--it wasn’t even a question. If you wanted to pursue university studies, you had to go abroad. It was almost a rite of passage for Luxembourgers. Many eventually return home, but I chose a different path. I moved from a small country to some of the world’s largest cities: my career has taken me to London, New York, Berlin, Tokyo and Paris. I embraced the ‘big ocean’ and developed myself in that global environment.
How did you integrate into such different cultures?
Growing up in Luxembourg provided me with a strong base for a global career. Robert Schuman, a French statesman born in Luxembourg, said that his early years in Luxembourg shaped him. I can relate to that. Luxembourg lies between France and Germany. It teaches humility and compromise. You learn to navigate multicultural settings here. These qualities helped me adapt to London, New York and even Japan. In Japan, I felt distinctly Luxembourgish because there were so few of us--maybe 20 in total. It was like being part of a small family. In Paris, things feel different. The Luxembourg community is bigger, and France is my second home after all.
In Europe or the US, do you feel like a chameleon?
In a way, yes--and that’s not a bad thing. My first experience representing Luxembourg came early. As a teenager, I participated in the Model United Nations at Harvard and attended the Children’s International Summer Village, where each country sent two boys and two girls to represent their nation. A challenge was deciding what Luxembourg’s traditional dress should be. What really defines us? Being a chameleon doesn’t mean losing your identity. It actually gives you the chance to highlight Luxembourg’s unique qualities, its culture, its way of thinking--even if sometimes that means rediscovering it yourself.
What advice would you give to Luxembourgers going abroad?
Think big! In a small country, opportunities to do so can be limited. Living elsewhere gives you a broader vision, which you can later bring back home. A great example is Luxembourg’s real estate sector. In the last ten years, architecture has greatly improved thanks to global talent. Luxembourg chose to open up instead of building only for itself. This shift has brought it great benefits.
In what way?
I grew up in the 1970s when Kirchberg was little more than a highway--essentially a no-man’s land. Fast forward 20 years, and it has become a thriving urban district. I compare it to the Quartier Nord in Brussels, which developers built under similar conditions. Today, Kirchberg looks dynamic and modern, while the Quartier Nord appears to be lagging behind somewhat. Luxembourg has raised the bar in urban planning, proving that even a small country can achieve world-class development.
It’s a small country, but one with a big impact.
What aspects of Luxembourg do you miss most in your daily life?
There’s a certain comfort to life in Luxembourg--a sense of proximity and ease. What makes it unique is how people mix, regardless of background or social class. In big cities, you tend to stay within familiar circles, but in Luxembourg, that blending happens naturally. It creates a strong sense of community. There’s also something special about growing up there. I had a joyful childhood and was part of the Diables Mauves and the Éclaireurs--a scout movement. That kind of freedom and close-knit environment wouldn’t be possible in a big city, and certainly not today, when life has become more complex.
Have you maintained any Luxembourgish traditions or habits while living abroad?
I still speak Luxembourgish--I learned it in school, and it’s something I’ve kept. Even in my professional life, I find ways to stay connected. In real estate, we invest in student housing, which is an important asset class globally. I took my partner in Australia to the Cité Universitaire in Paris. We visited the Luxembourg residence, the Fondation Biermans-Lapôtre. It was a way to bridge my Luxembourgish roots with my international work. I also attend National Day celebrations at the Luxembourg embassy when I can. It’s a small tradition, but embassies are great places for Luxembourgers abroad to reconnect with home.
What opportunities or challenges have you faced as a Luxembourger abroad?
One challenge is that Luxembourg isn’t always well known. I often have to explain where it is and that it has a rich history beyond its financial reputation. Some assume it’s just a city, but it’s a full-fledged country with deep roots. Interestingly, when I arrived in Japan, people already knew about Luxembourg--thanks to my father. He wrote extensively about Luxembourg’s history, and one of his books had been translated into Japanese. That was a pleasant surprise.
“In the business and real estate world, Luxembourg is well known as a key financial hub,” says François Trausch. Photo: Olivier Rolfe
How do you describe Luxembourg to foreigners?
Luxembourg is at the heart of Europe--literally and politically. We tend to take European unity for granted, but Luxembourg has always played a vital role in bridging France and Germany. Historically, it was at the forefront of European integration, starting with Benelux. In many ways, it serves as a laboratory for what Europe can achieve. Beyond that, Luxembourg has built essential expertise in finance, making it a critical player in the European economy. It’s a small country, but one with a big impact.
How is Luxembourg perceived in France?
In the business and real estate world, Luxembourg is well known as a key financial hub. Many major real estate firms have teams and operations there, with growing substance in fund management. It’s seen as a centre of expertise in the industry. On the other hand, some people still hold outdated views, labelling Luxembourg a tax haven, which is simply not true. This misconception has faded over time, especially as Luxembourg has become an indispensable part of the European financial and regulatory landscape. Thirty years ago, the country started its satellite industry. It faced pushback from bigger nations. Today, it is a key service provider in the EU.
If you had to correct one misconception about Luxembourg, would it be the tax haven stereotype?
Yes, but that label has largely disappeared because it no longer reflects reality. Luxembourg has moved past those stereotypes. The country has also gained political influence. Three presidents of the European Commission and strong prime ministers have helped Luxembourg build good ties with its neighbours. Despite its size, it has learned how to punch above its weight in European affairs. That’s something Luxembourgers can be proud of.
Luxembourg could benefit from its global nationals. They act as informal ambassadors.
Have you, as a small country representative, faced condescension from larger nations?
Big nations always look down on smaller ones--it’s not unique to Luxembourg. In the end, you’re always the small country to someone. And now, as Europeans, we’re realising we’re the ‘small’ continent next to others. It’s all relative.
Do you feel like an ambassador for Luxembourg?
Absolutely. I already felt like one as a child when I participated in the United Nations youth programmes. Luxembourgers abroad can play a key role in representing their country. Take Argentina, for example. President Milei recently named business leaders as ambassadors. They have lived abroad and will work to attract investments back to Argentina. Of course, Argentina has specific reasons for doing this, but the idea is interesting. Luxembourg could benefit from its global nationals. They act as informal ambassadors and promote its strengths whenever they can. I certainly try to do that when the opportunity arises.
Has living abroad changed your perspective on your Luxembourgish identity?
Identity comes in waves--it’s not a constant feeling. Growing up in Luxembourg, my identity was naturally strong. But as you spend time abroad, it can become diluted. My first wife was Canadian, and my second wife, though French, lived in Buenos Aires for 25 years. They added and are adding new layers to my identity.
But as you get older, you tend to reconnect with your roots. When my father passed away, we had to handle his personal library--over 20,000 books in the house where he had spent his entire adult life. My sister and I applied for a grant from the Fondation Losch, which enabled the digitalisation of the library which we donated to the University of Luxembourg. We also applied for a building permit to restore his house, which was subsequently classified both for its architectural value and as a tribute to my father’s legacy. That was a very tangible way for me to reconnect with Luxembourg.
The biggest challenge for small countries is thinking big. It’s not always in their nature.
What have you learned from France--or from your time abroad in general--that you wish could be applied in Luxembourg?
The biggest challenge for small countries is thinking big. It’s not always in their nature. If Luxembourg wants to keep evolving, it must continue to push its boundaries. To some extent, it’s already doing this--planning for a future population of one million, for example. The financial industry has done an excellent job of embracing a global outlook. But in other areas, there’s still a tendency to remain inward-looking. Take the Luxembourgish language--it’s a key part of our identity, but at times, it has been used as a barrier rather than a bridge. Finding the right balance is crucial. Luxembourg will always be a small country, just as a city of 100,000 will always be a small city. But it has consistently managed to strike that balance well. The challenge is to maintain that openness while staying true to its roots.
To what extent do you follow the Luxembourg real estate market?
I keep an eye on it. In 2022, I was invited by Paperjam to speak at the annual Real Estate dinner. Through the mandates we manage for our clients, we also have investments in Luxembourg. That said, we approach Luxembourg like any other city, though on a much smaller scale. I manage a global real estate portfolio worth $90bn, and Luxembourg is just a tiny fraction of it. We have local teams handling those investments, but since I know the country well, I tend to get more involved when these topics come up.
How do you view the current state of the real estate market?
Luxembourg is a microcosm of Europe. The housing shortage here mirrors what is happening across the continent. Governments everywhere find it hard to create affordable housing. In Luxembourg, the problem is tougher because of its big plans for population growth. The office market has faced some challenges. However, people are going back to work. In Luxembourg, the frontalier system limits remote work because of regulations. That issue has largely stabilised. The real concern is residential real estate. At the Paperjam conference, I highlighted the importance of density. People may dislike the idea, but it’s the only viable solution. If Luxembourg wants to accommodate its growing population, it needs to build higher and denser.
Real estate expert
François Trausch, 60, has been an executive at Pimco, a global bond investment manager and an independent subsidiary of Allianz Group, for nine years. Based in Paris, he heads the company’s global real estate investment business. He has over 30 years’ experience in the field of real estate, having worked at Goldman Sachs, Tishman Speyer and GE Capital. He graduated from ESCP in Paris and Harvard Business School in Boston.
Like one in five Luxembourgers, Trausch holds dual nationality. His father, Gilbert Trausch, was a historian from Luxembourg who taught at the College of Europe in Bruges and the University of Liège. François’s mother, Catherine Trausch, was from Paris.
This article was written for the of Paperjam magazine, published on 26 March. The content is produced exclusively for the magazine. It is published on the site to contribute to the full Paperjam archive. .
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