Minister of Finance Yuriko Backes visited London from 7 to 8 June 2022 as part of a financial mission.
Yuriko Backes was first received by John Glen, Economic Secretary to the UK Treasury and City Minister, for a bilateral meeting, following a first exchange in Luxembourg in March this year. The Ministers discussed topical issues of common interest and took stock of bilateral cooperation. The Minister of Finance pointed out: "It was a pleasure to discuss the development of our financial centres and the strengthening of our cooperation with John Glen. In the current context of uncertainty, a deep and continuous dialogue with the UK is more important than ever. As one of the top three international financial centres, our place and the City of London are closely linked. Well-developed and interconnected financial markets will remain essential to mobilise the capital needed to finance the green and digital transition."
The Minister of Finance then went on to sign a new tax treaty between Luxembourg and the United Kingdom for the avoidance of double taxation and the prevention of fiscal fraud with Lucy Frazer, Financial Secretary to the Treasury. The new treaty, which will replace the old 1967 treaty, will greatly facilitate trade and investment between the two countries, and contains the latest tax transparency standards from the OECD's BEPS work. On this occasion, Lucy Frazer stressed: "I was delighted to be able to contribute to strengthening the long-standing partnership between the UK and Luxembourg through the signing of this new tax treaty. Through it, cross-border trade and investment between our two countries will continue to flourish in the future."
Yuriko Backes also used the opportunity of her stay in London to meet with the heads of several British financial institutions present in Luxembourg. She was also invited by the City of London Corporation to an exchange of views with City representatives on the future development of the British financial centre and its post-Brexit relationship with the continent. These discussions gave the opportunity to take stock of their strategic priorities in the European Union, particularly in the field of the digitalisation of financial services and sustainable finance.
In an interview with Nikhil Rathi, the head of the Financial Conduct Authority - the UK's financial sector regulator - the Minister was able to give an update on the priorities for regulation of the financial sector in the United Kingdom.
Finally, Yuriko Backes attended the official launch ceremony of the Business Club Luxembourg-United Kingdom. This new platform, jointly created by the Chamber of Commerce and the Luxembourg Embassy in London, will link the business communities of both countries and aims to foster new and fruitful Anglo-Luxembourg partnerships.
Minister Yuriko Backes comments: "The UK remains an important partner for Luxembourg and its economy, and my meetings with key UK stakeholders, the signing of a new tax treaty, but also the launch of the Luxembourg-United Kingdom Business Club are concrete and significant steps to further strengthen this long-standing partnership."
From London, the Minister of Finance will travel to Paris, where she will participate in this year's OECD Ministerial Council Meeting on the theme "The Future We Want: Better Policies for the Next Generation and a Sustainable Transition".
Press release from the Luxembourg Ministry of Finance