The Luxembourg Ministry of Finance published an interview with Finance Minister Gilles Roth outlining the government’s 2026 agenda for Luxembourg’s financial centre, alongside broader fiscal priorities including a planned tax reform to introduce a unified tax class. The strategy centres on supporting core sectors such as funds, insurance and banking while accelerating diversification through innovation, digitalisation and sustainable finance. On digital finance, Roth framed artificial intelligence as a “must have” for areas such as customer risk assessment and portfolio analysis, pointing to a “human in the loop” approach and confirming the establishment of an AI advisory board to guide the strategic development and responsible use of AI in financial services, drawing experts from international firms and academia. Luxembourg also aims to position itself as a leading European hub for digital assets, citing momentum under the European Union’s Markets in Crypto-Assets Regulation (MiCA), in force since early 2025, and noting that the Luxembourg Intergenerational Sovereign Fund (FSIL) includes a policy to invest at least 1% of its assets in Bitcoin via ETFs to reduce operational risks. The interview also referenced Luxembourg’s incremental blockchain lawmaking, including the “control agent” under the fourth blockchain law, and cited examples such as a European Investment Bank digital bond, HSBC’s digital-asset centre in Luxembourg, Franklin Templeton’s tokenised money market fund, and the Treasury’s first issuance of digital certificates in June 2025 via HSBC-Orion. Separately, Roth highlighted the Luxembourg Defense Bond as a new instrument for mobilising private capital for defence financing, noting that the EUR 150 million three-year bond at a fixed 2.25% coupon was fully subscribed, with subscription tranches from EUR 1,000 and a cap of EUR 150,000 per person per bank, and that interest is exempt from income tax for Luxembourg-resident investors. Roth indicated the unified tax class is intended to enter into force in 2028, with broad discussion of the reform planned during 2026.

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