In an interview, Luxembourg Finance Minister Gilles Roth reported that assets under management in Luxembourg investment funds have reached nearly EUR 8.6 trillion for the first time, rising almost 12% over 12 months. Alternative funds now account for about 35% of funds managed from Luxembourg, while the country remains Europe’s largest fund center. The financial sector represents about 25% of gross domestic product and directly employs more than 73,000 people. Roth identified digital finance, artificial intelligence, cybersecurity and tokenization as central to maintaining the sector’s competitiveness. Luxembourg is investing in related infrastructure and initiatives, including an AI Experience Center and an advisory committee on AI in finance. The government may review the investment tax credit to encourage corporate spending on AI and cybersecurity. Roth also backed the European Savings and Investments Union’s objective of directing private capital toward productive investment but expressed strong reservations about centralized supervision. On housing, Roth said the government could present a new program within two months to mobilize private investment, expand supply and rebalance the residential market.

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