“It is a changing world. Public spending leads to public deficit.EU countries have borrowed heavily and as a result their budgetary disciplines are stretched to provide higher salaries, higher healthcare, higher pension plans etc. The turbulence faced by the EU is more of a social crisis then financial ” said HEM Gaston STRONCK, Ambassador of Luxembourg in India ,while addressing the students and faculty at WeSchool recently.

Luxembourg, is a landlocked country in western Europe, bordered by Belgium, France, and Germany ,with a population of 524,853 in an area of 2,586 square kilometres (998 sq mi) ,this tiny little country in the EU,is the biggest financial centres in the world.

The industrial sector in Luxembourg, which was dominated by steel with Arcellor Mittal as a giant player, until the 1960s, has since diversified to include chemicals, rubber, and other products. Services, especially banking and finance, account for the majority of economic output. Luxembourg is the world’s second largest investment fund centre (after the United States), the most important private banking centre in the eurozone and Europe’s leading centre for reinsurance companies. Moreover, the Luxembourg government has aimed to attract internet start-ups, with Skype ,E-Bay and Amazon being some of the many internet companies that have shifted their headquarters to Luxembourg. Luxembourg stock exchange specialises primarily in the issue of international bonds, in which it is ranked first in Europe, with 32,933 debt securities listed on the Exchange as of 2008. The Luxembourg Stock Exchange was the first exchange to list a Eurobond, with the issue of Italian Autostrade bonds in 1963, and, to this day, Luxembourg has maintained a dominant position in European bond issues, with approximately 60% of all cross-border securities in Europe being listed in Luxembourg. Fifty countries list at least some of their sovereign debt in Luxembourg, whilst Luxembourg is also a market for debt from the EBRD, European Commission, European Investment Bank, and World Bank.

^“Established in 1927, the Luxembourg Stock Exchange is today the principal centre for the listing of international securities. India needs huge funds for development. One out of three mutual funds in Indian is listed in Luxembourg or has a Luxembourg partner. Indian companies are listed on Luxembourg stock exchange. For a small country, we have a strong financial presence. With its fast administrative systems, decision making and strong logistic support, It is an ideal gateway for Indian businesses wanting to enter the EU market “ he emphasised.

While talking about the academic initiatives the country has on offer , he focused on the  value added education offered by the University of Luxembourg and hoped that collaboration with WeSchool will create opportunities for Indian students and faculty to visit the country for higher studies.