Delano January 2021 by Maison Moderne

JANUARY 2021 NO. 74

A LOOK AHEAD

JANUARY 2021

2021 Forecast

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ILUSTRATING DELANO The cover for this edition was illustrated by Luis Demano, a cartoonist who lives in Valencia, where he is a professor in two masters of professional illustration programmes. He recently won a golden Laus Award for a campaign highlighting the problem of verbal and psychological violence in relationships. His book, “Illustrated History of Rock”, has already been translated into six languages.

Delano, Maison Moderne’s English-language media brand, was primarily aimed at the anglophile expat community when it was first launched in 2011. But it soon became clear that its reach was much broader as non-native speakers sought out quality journalism, and English became the lingua franca in the business community. We believe the influence of English in Luxembourg will continue to grow over the next decade as it is used in the professional world as well as in private life by expats, commuters and Luxembourgers. Indeed, English and French will remain the two leading languages among those in the community who have higher education and generally higher income. With this expanded audience in mind, Delano will sharpen its focus on covering primarily business and politics but will also continue to be relevant for readers interested in society, culture and lifestyle. To facilitate this, from January 2021, Delano will become a regular monthly magazine. And in the spring of 2021, a new delano.lu website will be launched using the latest technology to improve reader experience, as well as offer new opportunities to advertisers to reach targeted audiences. At the same time, Delano’s twice-daily newsletters will be redesigned, and we will launch a new weekend newsletter. On a broader note, at Maison Moderne in 2021, Delano and Paperjam journalists will join forces to create one common newsroom staffed by approximately 30 accredited journalists including photographers, fact-checkers and web publishers. Paperjam and Delano share the same goals and to express this in their branding, the Paperjam Club will become the Paperjam + Delano Club, and the Paperjam Business Guide will become the Paperjam + Delano Guide. This bilingual editorial strategy reflects the company’s bilingual business strategy announced by CEO Geraldine Knudson earlier this year. Finally, to mark the milestone anniversary, we hope to catch up with you, post-covid, at a huge celebratory 10th birthday summer party on 13 July.

Duncan Roberts, editor-in-chief Mike Koedinger, founder and publishing director

Letter from the editor

In 2021, Delano will turn 10

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January 2021 BUSINESS

POLITICS Contents

PUBLISHER

Write to PO Box 728 L-2017 Luxembourg Offices 10 rue des Gaulois, Luxembourg-Bonnevoie ISSN 2220-5535 Web www.maisonmoderne.com Founder and chairman Mike Koedinger CEO Geraldine Knudson Administrative and financial director Etienne Velasti CONTENT Phone (+352) 20 70 70-150 Fax (+352) 29 66 19 E-mail news@delano.lu Publishing director Mike Koedinger Editorial development director Nathalie Reuter Editor-in-chief Duncan Roberts (duncan.roberts@maisonmoderne.com) Desk editor Aaron Grunwald (aaron.grunwald@maisonmoderne.com) Journalists Jess Bauldry (jessica.bauldry@maisonmoderne.com) Lynn Feith (lynn.feith@maisonmoderne.com) Natalie Gerhardstein (natalie.gerhardstein@maisonmoderne.com) Cordula Schnuer (cordula.schnuer@maisonmoderne.com) Contributor Stephen Evans Photography Romain Gamaba, Jan Hanrion, Lala La Photo, Uli Schillebeeckx, Mike Zenari, Matic Zorman Proofreading Pauline Berg, Lisa Cacciatore, Sarah Lambolez, Manon Méral, Elena Sebastiani DESIGN Phone (+352) 20 70 70-200 Fax (+352) 27 62 12 62-84 E-mail agency@maisonmoderne.com Agency director Mathieu Mathelin Head of production Stéphanie Poras-Schwickerath Creative director Jeremy Leslie Head of art direction Vinzenz Hölzl Art director José Carsí Layout Sophie Melai (coordination), Juliette Noblot ADVERTISING Phone (+352) 20 70 70-300 Fax (+352) 26 29 66 20 E-mail regie@maisonmoderne.com Partner-director, advertising sales Francis Gasparotto (francis.gasparotto@maisonmoderne.com)

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In accordance with article 66 of the law of 08.06.2004 on the freedom of expression in the media: the company that publishes Delano is indirectly held, by a stake exceeding 25%, by Mike Koedinger, an independent editor registered in Luxembourg. Geraldine Knudson is chartered with daily management. Delano™ and Maison Moderne™ are trademarks used under licence by MM Publishing and Media S.A. © MM Publishing and Media S.A. (Luxembourg) NOTE TO OUR READERS Delano’s next print edition comes out 20 January. For daily news updates, commentary and our weekly what’s on guide, visit www.delano.lu.

THE TEAM

About

Contents

The print edition of Delano, the English language news magazine for Luxembourg’s international community, is available at newsstands across the grand duchy and by subscription. Jess Bauldry

Delano publishes two newsletters weekdays: the “Breakfast briefing”, featuring world and local headlines to start the day informed, and the “Noon briefing”, covering

A graduate in French and theatre, Jess qualified as a journalist in 2005. The UK-Luxembourg national enjoys learning about new ways of connecting with audiences, such as audio storytelling. She is originally from West Sussex. JOURNALIST

the latest Luxembourg news and

Lynn Feith Born and raised in Luxembourg, Lynn studied in the UK before returning home to embark on her professional journey. With a strong social awareness, she enjoys reporting on human interest stories, as well as lifestyle trends.

JOURNALIST

@jessbauldry

@lynn_feith

events. Plus there are Delano Live events, which feature live on stage interviews with people and on topics covered by Delano, but with a fresh perspective, followed (when possible) by a networking cocktail. ©

www.delano.lu news@delano.lu

Delano Magazine Delano Magazine @DelanoMagazine

Natalie Gerhardstein

Aaron Grunwald

German-US national, Natalie has 17 years’ experience in media & communications, starting at S&P Global. She has a passion for international development, business and travel. She holds an MBA and is currently learning Chinese.

DESK EDITOR Aaron has been a Delano journalist for 10 years. Even though it’s not a particularly pleasant odour, he likes the smell of the freshly printed magazine. Aaron is originally from Berkeley, California.

JOURNALIST

@aarongrunwald

@ngerhardstein

Duncan Roberts EDITOR-IN-CHIEF

A journalist in Luxembourg for over 25 years, Duncan has been the editorin-chief of Delano since its launch in 2011. He likes to think he’s fluent in four languages (not bad for a Mancunian), closely follows politics and soaks up culture of any hue. @bezdonut63

Cordula Schnuer Cordula started working as a journalist in 2011, returning to her native Luxembourg after graduating from university in the UK. She’s interested in politics and social issues. You’ll rarely find her without a book at hand. JOURNALIST

@CordulaSchnuer

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Guest editorial

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CARLO THELEN An employee of the Luxembourg Chamber of Commerce since 1996, Carlo Thelen has been CEO and director general since 2014. He previously served as chief economist, director of economic affairs and international affairs, and economic advisor. Thelen blogs on social-economic issues: ¨

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The year 2021 will be marked above all by the ongoing uncertainties regarding the evolution of the health crisis. The lockdowns in Europe closing out the year of 2020 will probably not be enough to eliminate covid-19 and its dramatic effects on society and the economy. Will vaccines be able to restore the health situation and a return to our pre-crisis social model? Or should a strategy of ‘test-isolate-treat’ be more sustainably and systematically applied? Nothing could be less certain. This crisis is often considered an opportunity to create a new socio-economic model, based on a more flexible way of working, more local consumption, a return to humane, qualitative and sustainable values. However, I do not think that the fundamental laws of the market and the rules of supply and demand will change profoundly. The Luxembourg economy, due to its compact size, will always be looking towards the Greater Region, Europe and the international markets. Of course, our economy must remain competitive and attractive. Our companies must succeed in their post-covid recovery and innovate more quickly to position themselves in relation to the competition. The different sectors of our economy have many challenges to overcome in 2021. For some, these are the same issues as before the crisis, for others, the crisis has presented the need for structural readjustments. Extracting lessons from this crisis is an essential step to sustainably strengthen our economic fabric and our collective resilience. It is not only about adapting, but above all about identifying new high-value added services (in particular, in health sciences and technologies, a fast-growing sector, while also fighting against the risk of lack of medical resources due to an aging demographic). Luxembourg’s budgetary situation in 2019 helped to foster better resilience compared to its neighbours, allowing keeping public debt under control, despite expenditures on aid and investments. The underlying anti-cyclical policy in the 2021 budget, the continuation of partial unemployment, extending aid to the most affected sectors and the projections of higher levels of public investment are all elements that raise hopes that 2021 will be a year of recovery and of a return to an environment more beneficial to businesses. At the international level, the outcome of the US elections hopefully calls for a return to multilateralism and a positive dynamic in the development of economic and trade relations between the United States, Europe and China. An evolution that would benefit the grand duchy. The uncertainties surrounding the Brexit negotiations in mid-November should not detract from these signs of hope for 2021.

Guest editorial

2021: a year of uncertainty and hope

JANUARY 2021

From scenario planning to responsible production, here are the topics we think will come up during Luxembourg business meetings in 2021

Leadership, agility and resilience have long been key fundamentals of futureproofed organisations. While businesses have recently been tested to their limits on these essentials, there are opportunities on the horizon.

WORDS

Natalie A. Gerhardstein

he late Steve Jobs once gave business advice on not dwelling on something for too long if it has been done well: “Just figure out what’s next.” The same could apply to testing times. What has been striking about Luxembourg businesses over the past year is how, despite influences outside their control, many managed to quickly realign themselves, pivoting their strategy to face unforeseen challenges. It has been inspiring to see not just how some organisations “tech-celerated”--be it through e-commerce, delivery options, remote working--but how some leaders have taken customer, employee feedback on board. And that’s not even including the brave entrepreneurs who decided to launch businesses right in the midst of these unprecedented times. Of course, some sectors have been especially hard hit--the airline and gastronomy sectors, for instance. The Economist predicts that in 2021, business more broadly will be put under even more upward and downward pressure--not only due to geopolitical tensions, in which we’ve seen some organisations already

become entangled (e.g., Huawei), but also from their customer and employee base, who are demanding companies adhere to certain values. The values that resurface throughout this section are people and the planet. This is echoed not just by the new Federation of Young Business Leaders president Laurent Decker, but also Ramborn’s Carlo Hein, as he discusses his perspective on a feel-good certification of the future. Even industry is aiming to push boundaries in energy efficiency. People, as Mazars Luxembourg managing partner Muhammad Hossen reminds us, are a “major asset”, and need to be supported during these volatile times. And Equilibre’s Larissa Best provides an important reminder to keep diversity on the agenda. Last but certainly not least, statistics show imbalance when it comes to frontline workers, upon whom so many of us relied in 2020, be they in the medical field, care support, delivery workers, etc. The covid-19 pandemic has caused a shift in perspective for many individuals, and it remains to be seen how × businesses will respond in 2021.

Business

JANUARY 2021

Strategy

Scenario planning for volatile times

Company leaders may not be able to predict what’s in store for 2021, but they can prepare themselves for changing times. Muhammad Hossen weighs in. WORDS

f Muhammad Hossen had to narrow down how companies can pivot their strategy in hard times, it would boil down to people, communications, planning and investing, and finance. The Mazars Luxembourg managing partner states that people are “the major asset we have… we really need to take measures to support them”. The pandemic caused many to shift to remote working--whether companies were digitally ready or not. This requires companies to listen to individual employee needs. “For certain people, it suits them to work from home. But for a lot of people, it does not suit them [and] they can have emotional issues that arise as a result.” It’s critical then to communicate transparently not just about safety, but also via “regular updates on the health of the business because, of course, it’s a primary concern for a lot of them”.

Natalie A. Gerhardstein

PHOTO

Mike Zenari

When it comes to planning and investing, IT acceleration will undoubtedly continue into 2021. But, in addition, Hossen advises “regular contact with your customers and suppliers… be aware of how the covid-19 pandemic is impacting them in terms of their key activities”. Disturbances amongst suppliers will, of course, impact whether organisations can deliver to their own clients, but anticipation and preparation can help a company’s resilience. Take a hard look at profitability and ambitions, he adds. “Scenario planning is definitely something that has to be implemented. Instead of doing, for example, yearly budgets, consider moving to rolling financial forecasts, where you have a regular update on your revenues and expenses,” he says. “Consider also the impact on liquidity and cash flow risk to the organisation, which has to be monitored

on a daily basis for certain organisations.” CFOs can assess cost structures, find the “low-hanging fruit”. Hossen, himself a bank CFO during the 2008 financial crisis, encourages organisations to set up a covid-19 crisis committee, if they haven’t yet, meeting as often as necessary. And what about for SMEs? On one hand, fewer people may be simpler to manage. But Hossen advises “perform[ing] a business impact assessment: you need to talk to your clients, find out how it’s affecting them, and how it eventually will affect you… one key measure is managing liquidity risk [and] cash flows, manage and renegotiate credit lines, accelerate collection of receivables… all of that is applicable to every single company operating within the × Luxembourg economy.” ©

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JANUARY 2021

NEON MARKETING TECHNOLOGY CO-FOUNDERS KARIM YOUSSEF AND MISCH STROTZ NATALIE A. GERHARDSTEIN

What are the most exciting developments happening in the intersection of marketing and tech? KARIM YOUSSEF & MISCH STROTZ Similar as in other tech domains, some of the coolest trends lie in augmented reality and artificial intelligence. For AR, we expect a new era of how we interact with the internet, our surroundings, and technology in general. As for AI, we have reached a level of integration that was just unthinkable a few years back. For example, OpenAI’s GPT-3 can write large content pieces about any topic within seconds.

Equilibre co-founder Larissa Best talks about the traction of the no-manel movement, encouraging event organisers to push outside their standard networks. Equilibre’s My Pledge, an initiative aimed to ensure diversity at public events, has been signed by around 70 individuals and 25 companies, says Larissa Best. The Equilibre co-founder is happy with the traction thus far. “The awareness from a couple of years ago is totally different to nowadays,” she says. “There’s been a huge shift that it’s not acceptable anymore.” Best says she notices an uptick in pledgers around International Women’s Day. But she cites PwC Luxembourg--the first company to sign the pledge--as well as Vodafone and SES Astra, as companies where “diversity is high on the agenda”.

Equilibre doesn’t audit signatories to ensure compliance, as it’s a voluntary scheme. When they’re aware of an all-male panel, however, “we try to go on social media to expose them--[but] in a nice way.” Best says in about 85% of cases, organisers or panelists “just didn’t think about it”, having tapped into their standard network. “It’s hard for them to go outside of their comfort zone, look for women that aren’t necessary in their network, and that’s when we come in and help them.” Best says they have a pool of “a couple of hundred women who are ready to speak. It’s pretty robust.” N.G. © www.equilibre.lu

FRONTLINE WORKERS Around two-thirds of employees were considered essential in managing the health crisis, with one-third of them “on the frontline”, particularly exposed to potential contamination of the virus. These included medical personnel and caregivers, cleaning staff, delivery workers, among others--who generally do not have the option to work from home either. Here’s a snapshot on them, based on figures from Statec.

Source ¯ Statec, 15 October 2020

150,000 in Luxembourg “particularly exposed”.

Women comprise the greater proportion of these workers.

More part-time or temporary contracts.

€23.90/hour wages on average, about 90% of the average wages for non-frontline workers.

What advice would you have for smaller companies with a limited marketing budget? Build online marketing competences in your company and invest in training. A few practical things you can do : focus on a specific audience or niche; build an email list of loyal customers; create a blog for search engine traffic; learn and get comfortable with creating video content; use these channels to provide value and build a community. How do you think social media will change in 2021? Covid has forced companies to digitise. We believe that there will be a higher demand for online marketers and creators on the job market and more demand for in-house competences in these areas. Online video is bigger than ever due to TikTok, Twitch and YouTube. You should consider becoming a creator yourself. © www.goneon.lu

Photos ¯ Mike Zenari ¯ Neon Marketing Technology

Diversity on panels and beyond

CARLO HEIN

Sustainability

Certification of the future Ramborn Cider Co has joined a growing movement to get B Corp certification, becoming the first Luxembourg brand to do so.

WORDS PHOTO

Natalie A. Gerhardstein Mike Zenari

ocal cider producer Ramborn, since its inception, has been committed to harvesting apples and other fruit from local orchards which might otherwise have gone to waste and using them to create craft ciders, perries and--as of November--juices. When the health pandemic hit, the company once again made an impact by working with a local distiller to create hand sanitisers from its byproduct, donating it to workers and communities in need. Founder and CEO Carlo Hein says he “stumbled over B Corp” online one day, used the self-assessment tool to check how his company ranked, “and the score was quite positive because Ramborn was a B Corp before knowing B Corp was around.”

www.ramborn.com

In July 2019, he invited employees and stakeholders to the Born-based cider house to present the concept to them. The younger generation especially “were really energised by what they saw, that you really can have an impact in this world.” Working with a consultant, Ramborn applied to become a B Corp, which required proofs and other documentation. By summer, it got the approval, joining the ranks of over 3,600 companies, including Patagonia, Ben & Jerry’s and Goodwings, and becoming the first Luxembourg brand to do so. Hein praises the governance aspect behind the certification. “It was a good way of structuring [and] to have written procedures, which were around but not assembled. We have now an employee handbook [with] all that included.” So what would Hein say to cynics? The certification isn’t “classical”, says Hein, rather a “business and management tool”, with a focus on people and the planet, without sacrificing profitability. Every three years, Ramborn will be reassessed, “but the assessment tools help us find out places we can get involved, because we are benchmarked compared to [other] companies,” meaning the company can see how it’s doing in the market and get ideas for further improvement. Thanks to the B Corp certification, the company decided to do two things: create the line of juices (CO2 is produced during fermentation) and set up an adopt-a-tree programme to further protect local biodiversity. Although the B Corp process varies depending on company size, Hein urges other business leaders to reflect on how they can increase their positive impacts. “By doing so, you build a better company.” ×

Business

Ramborn founder and CEO, pictured in an orchard near Born, says the B Corp certification helped align staff on a common goal. “We know exactly what we are doing, and what our impacts are for the planet, and that is a good feeling.”

JANUARY 2021

NET-ZERO CO2 BY 2050 ArcelorMittal is one of a number of industrial players shifting its strategy in an attempt to become more energy efficient and lead decarbonisation in its domain.

Gamma Technologies co-founders Jayan Jevanesan and Caner Dolas say their augmented reality can lead to cost savings, error prevention and enhanced communication. Gamma Technologies, created in 2019, provides a unique AR tool with two sides: one is an app, which runs on tablets or photos (e.g., from a construction site), while the other is a web platform so those offsite can access and integrate necessary info back into planning models. Not only does it work in real time but it’s “a tool for construction managers and facility managers to bring models through planning to the reality to prevent errors and extensive rework, and to facilitate the communication process,” according to co-founder Caner Dolas. Gamma Technologies is a Luxembourgbased startup in development, but already has clients in a wide range of countries. And Dolas and fellow co-founder Jayan Jevanesan are excited about the tool’s potential. As the latter explains, AR devices “are just getting better and better, more and more precise, and now it’s

at the point where you can use it professionally”. Dolas adds, “AR helps to make everything more intuitive and easy to understand,” which means that construction managers or architects “can prevent [a] problem before it is created, and save a lot of money with this.” As he sums it up: normally, if plans are ambiguous on a construction site, the information is relayed via photos, notes, emails, etc. Not only is this time-consuming, but it’s also prone to errors. “We calculated that from beginning to end of this whole process, it’s [around] 27 minutes per issue, per documentation task: scanning, emailing, calling, so on. With [our tool], you can reduce it to less than one minute.” Quite a difference, if you calculate 26 minutes of saved time per issue and what Dolas estimates to be fixed costs of around €1,000 for each of those. N.G.

LEADERSHIP

“Let’s not waste this crisis, let’s start acting responsibly and put planet & people into our focus!"

Laurent Decker Federation of Young Business Leaders (FJD) president

Energy efficiency At the local level to follow the transition to a more circular production, it signed a five-year partnership on 29 October with the Luxembourg Institute of Science and Technology for collaboration on research and development in a bid to optimise efficiency of energy and resources. The first step in this involves a deep dive look into opportunities and requirements to enhance the efficiency of steel installations, the output of which will serve as a springboard for future R&D projects. N.G.

Photos ¯ Mike Zenari ¯ Shutterstock ¯ Marie De Decker

Making construction more intuitive

Green steel At the group level, ArcelorMittal is aiming to reduce its CO2 emissions by 30% by the year 2030 in a bid to be fully carbonneutral by 2050. As the steel giant announced in mid-October, hydrogen technology is at the heart of these objectives, with it expecting to be able to deliver 30,000 tonnes of “green steel” by the end of 2020, and then 120,000 tonnes and 600,000 tonnes by 2021 and 2022, respectively. In its “2020 Climate Action in Europe ” report, ArcelorMittal president and CFO, and CEO of ArcelorMittal Europe, Aditya Mittal, stated, however, that the “right policy” is required for such steelmaking. “We need the support of the EU and member states to ensure we have well-designed policy, including available finance, access to alternative clean energy sources at competitive prices and public guarantees on initial ramp-up projects,” he said. “Furthermore, a carbon border adjustment is required to support a successful transition to low-carbon steelmaking during the implementation of the EU’s Green Deal, while other regions may not be working at the same pace.”

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PA R T O F

JANUARY 2021

The economic repercussions of the pandemic will play out differently for the private and the public sectors in 2021

Glass half-empty or glass half-full?

WORDS

Aaron Grunwald

t was always going to be ugly. As soon as the covid-19 contagion started in Luxembourg--and lockdowns and restrictions were introduced--the economy went into slow motion. But it could have been worse. The financial sector held up fairly well (although it may not do as well in 2021). The public and not-for-profit sectors increased their payrolls. I asked Ferdy Adam of Statec if the government’s short-time working scheme helped soften the blow. “Of course. It prevented companies from laying people off,” he stated succinctly. More from that interview on the next page. In this section, we also hear how startups will fare when it comes to fundraising in 2021 (it won’t be easy, but investors still have cash for savvy entrepreneurs, says one observer) and about a looming wave of company insolvencies. The incoming head of the UEL business federation points to what he considers structural problems. And bad news if you thought the coronavirus would temper the steady rise in property prices.

Personally, I am pleased with how things have, relatively speaking, run smoothly during the crisis. The lights, water and internet were always on. Aside from some early toilet paper panic buying, shop shelves were full and supply chains functioned. Many firms were rather resilient and business continuity plans more or less worked. Most people kept their jobs. Society functioned. The economy did not melt down; it merely shrunk (admittedly by a lot). Not to discount those who have experienced personal, financial or health losses--and I think the pandemic has extracted a psychological price on us all--but most of us have come through this OK so far. The coming year will not be easy. Some things will undoubtedly get worse. Well, lots of things. That said, regular citizens could start getting a covid-19 jab in mid2021 (although it could take years to inoculate everyone), which should boost consumer confidence and spending. So, in my book, there are just enough signs to be somewhat optimistic about economic re× covery over the next couple of years.

Economy

JANUARY 2021

Outlook

WORDS

he grand duchy’s economy will take a hard hit in 2020 and 2021, but it will not be as bad as previously expected. That’s according to revised figures from Statec, Luxembourg’s statistics bureau, published in December. The agency modelled two scenarios: an ‘upside’ (with the virus more or less under control, meaning lighter societal restrictions) and a ‘downside’ (with the pandemic worsening). Ferdy Adam, head of the economic forecasting and modelling division at Statec, reckons the reality will be closer to the downside. “The upside seems unlikely,” Adam told Delano. Promising trials are “good news” but a vaccine probably will not be widely available until the second quarter of 2021, at the earliest, which means more shutdowns and disruptions are possible. That could drag down the economy further.

Aaron Grunwald

PHOTO

Mike Zenari

Statec expects GDP will shrink by between 5.1% and 6.3% in 2020, compared to 2019 (see graphic). That is an improvement on the -7.9% estimate out earlier this year. Inflation will likely remain below the threshold that sparks “indexation” (automatic rises in wages and pension payments), unless, Adam says, “something bigger happens with the oil price”. On current course, the public debt pile will shrink (or disappear under the most ideal conditions) in 2021. There will be new jobs created, although at a slower pace than before, helped by hiring in the public sector and in what Adam labels “non-market services”, such as hospitals and social care agencies. And also somewhat in the financial sector, whose hiring is “decelerating, growing less × strongly, but not negatively”.

FORECAST: 5 KEY FIGURES Statec predicts that Luxembourg’s economy will expand in 2021, with inflation and employment growth remaining relatively low. 8% 6% 4% 2% 0 -2% -4% -6% -8% 2020

2021

Downside scenario*

2020

2021

Upside scenario**

GDP growth Jobs growth Unemployment rate Consumer prices Public balance sheet (% of GDP)

Source © Statec, 3 December 2020

Covid-19 took its toll, but more jobs will still be created, says Ferdy Adam of Statec.

*In case of deteriorating public health conditions during the fourth quarter of 2020 and first quarter of 2021 **If the pandemic is “contained” during the fourth quarter of 2020 and first quarter of 2021

How will Luxembourg’s economy do in 2021?

JANUARY 2021

Will we see more startups founded? Stephan Peters, sustainable fund advisor and president of the Luxembourg Business Angel Network, says fewer firms will get off the ground in 2021, but they will probably be more focussed. “If I look very high level, I would expect there will be fewer startups being started” in 2021, states Stephan Peters. “I expect quite a few SMEs might end up closing shop.” The cash crunch will simply catch up with a lot of them, especially in sectors like hospitality and mobility. “A more interesting story,” Peters reckons, is the type of startups that will get off the ground in 2021. Entrepreneurs “looking at the pain points we’re all experiencing now,” as people spend more time at home, will have a leg up. “If you can offer something to replace gaps in [someone’s] life, that’s a great opportunity.” That includes fields like augmented and virtual reality, digital cooking classes, virtual healthcare services and online education, to name a few. “I think mental health definitely will see more and more focus.” That said, “investors will invest

in good ideas,” says Peters. “I think there will be less startups, but startups with solid ideas, that make it work in this crisis period, there will always be funding available.” While it will “be tougher” for entrepreneurs to secure funding, “business angels and VCs will keep looking, keep investing… Maybe not the same amount of funding, and maybe [provided on] less favourable terms, but there is funding out there, for sure.” His advice for entrepreneurs? Peters says it hasn’t changed at all: “Build products that customers are looking for and build a wellargued case why” it will make money. “At the end of the day, that’s what investors are looking for. They’re not looking for grand ideas. They’re looking for products run by a credible team that customers are willing to use and pay for.” A.G.

GREEN ECONOMY

“The carbon intensity of the economy remains among the highest in the OECD.”

The policy club warned in a recent report*: “The Luxembourg economic model is beginning to show its limits.”

How many businesses will the virus take down? Court figures suggest that this autumn bankruptcies were at a similar level to previous years. So any lasting damage may only become apparent late in 2021 as we seek to get back to normal after state support programmes are scaled back. “The support offered to companies in Luxembourg is much better than in Germany in terms of the speed with which they gave liquidity,” said Herbert Eberhard, CEO of the credit protection organisation Creditreform. Thus, if the government remains attentive to business needs, there should be a way of helping long-term viable businesses get over the hump. Yet the question remains to what extent the crisis will lead to a structural change in the market. Already before the virus we were shopping more frequently online, and it is probable that this experience will affect many people’s habits on a permanent basis. Similarly, if working from home becomes integral to our lives, this will affect retail footfall and demand for restaurant meals at lunchtime. The more popular players will survive the setback, but at the margins there is likely to be damage. Eberhard points to considerable potential harm to what he refers to as “zombie firms”: businesses with weak sales, but kept going by their ability to borrow at low interest rates. “We see considerable numbers of firms who have losses equivalent to more than three years of their balance sheet, and they only survive through cheap loans.” Christmas often generates a quarter of sales, and this is likely to be ruined. But much depends on how the virus and the vaccines play out in the months to come. Eberhard said: “For me, it’s a huge fat ‘nobody knows’.” S.E.

Photos ¯ Mike Zenari ¯ Matic Zorman (archives) ¯ *“OECD Environmental Performance Reviews: Luxembourg 2020”, 13 November 2020

WILL WE SEE MORE INSOLVENCIES?

Economy

Employers’ grouping: new boss

Structural problems in the crosshairs The incoming president of the UEL business federation, Michel Reckinger, argues that Luxembourg is too subservient to its civil service and needs a rethink of its education policy. WORDS

DUNCAN ROBERTS You have been critical of the government’s part time unemployment measures with regards to the discrepancy between the treatment of the public and private sectors. Is this a subject you will be pursuing in your new role as head of the UEL?

Here in Luxembourg we have a structural problem in the differences between the civil service and the private sector. The state’s salary structure, entry level salaries that are too high and other advantages--it’s pretty much the same all over the world--that a civil service job is a job for life. That has an impact on schooling, training… everything that is done here, including politics, is done in the service of public employees, because they are the voters.

MICHEL MECKINGER

Duncan Roberts

PHOTO

Mike Zenari

And that also discourages people to start up their own business?

Everything that we were told as entrepreneurs--to have the courage to start a business--was a lie. Politicians have proven [during the pandemic] that independents and the self-employed mean nothing to them. We don’t have any illusions that any political party will look after our interests. Just look at the last six months, how many people tried to convince the authorities that they didn’t actually have independent status [so they could claim state aid]? How is morale at the moment? Is there cautious optimism about next year?

No. I mean the [hospitality] sector is at rock bottom. Retailers won’t do their usual Christmas trade. People say the construction sector is still doing OK, but even so,

companies have been impacted--even if it’s slightly less--because they have people off sick or quarantined. And it’s the same with clients who are sick. Obviously, banks and insurance companies have largely been spared, but remote working has also affected productivity. Is Luxembourg prepared for the impact of AI in terms of training and job creation?

The government has recognised that this is an important area and that these are the sorts of business models that we can attract and develop. And Uni.lu is working in this sector. But we are still small, and we lack resources--schools are too slow to adapt. We aren’t San Francisco. We have to find niches. I’m just glad we haven’t missed the train completely, but we are × certainly not pioneers.

MIGRATION: PEOPLE WILL THINK TWICE

JANUARY 2021

Will housing prices grow more slowly? Don’t expect the coronavirus to dampen the real estate market too much, says Julien Licheron, a researcher at the Luxembourg Institute of Socio-Economic Research. Property prices rose by roughly 15% during the year to June 2020, despite the pandemic. “However, the lockdown and health crisis already had an impact on the residential market; not on prices, but rather on activity,” said Julien Licheron, who studies the housing market. “The number of sales--for apartments, individual houses and land plots--was 20% lower in the second quarter of 2020 than it was the same quarter the year before.” The slowdown was short-lived. “It seems that the number of sales went back to quite good levels after the lockdown,” he told Delano in mid-November. Luxembourg’s economy will shrink in 2020 and grow at a slower rate in 2021 (see page 20), but that likely will not curb housing costs. Licheron reckoned that the annual “increase in housing prices, around 4.5% to 5%, between 2010 and early 2018, was clearly explainable by the mismatch between housing needs and land

and housing supply. The housing needs were fuelled by very strong demographic growth, while housing supply was rather inelastic.” Licheron continued: “Over the last 24 months, however, the--two-digit--increase in housing prices was more difficult to explain… Fundamentals did not change that much, but we saw a rush on rental investments by--mostly local--private investors on newly built dwellings. It transmitted to the secondary market--the one for existing dwellings--quite quickly, since the remaining supply was very scarce in the primary market--the one for newly built dwellings.” While it is tricky to forecast the full impact of the covid-19 outbreak, “housing needs are still strong, the demand from rental investors is still strong, and the constraints on housing supply remain. That’s the reason why I do not see a strong probability that housing prices decrease in the near future.” A.G.

WILL WE SEE MORE REDUNDANCIES IN FINANCE?

Roberto Mendolia President, Aleba trade union

“The biggest risk we see is banks,” Mendolia said. When “people lose their job, they cannot pay their loan.” When state aid ends, some companies will default. “The banks will have to do accruals, net profit will decrease. In this capitalist world, when profit decreases, it means something. Will the banks have social

plans for that because they need to save money?” While he cannot say for sure, “the probability is high.” He is “very pessimistic as well” about the insurance sector. There are rising compliance costs, “people are driving less”, hitting auto premiums, and life insurance also is under pressure. A.G.

“I am expecting to have new migration flows,” says Adolfo Sommarribas of the European Migration Network. Luxembourg’s relative stability compared to other EU nations (the economy contracted 6% compared to 10% in Germany and 12% in France) and limited local workforce means companies will continue to recruit from abroad. EU nationals will be the winners, says Sommarribas. “Because the internal borders aren’t technically closed”, they are unlikely to impact EU passport holders coming to Luxembourg. But third country nationals, such as those from the US or China, may encounter difficulties. Currently, they make up 7% (18,650) of the documented population and many of them occupy highly qualified roles. Assuming they can obtain the paperwork necessary for a residence permit when administrations in their home countries are closed, and secure housing and passage to Luxembourg, a major obstacle will be family reunification. Family members joining a worker in Luxembourg account for 40% of the residence permits issued annually. To qualify for family reunification, a working migrant must prove they have enough income to support family members. “If you lose your job and are on unemployment benefits, you won’t fill the criteria to bring anyone,” says Sommarribas. And mass unemployment is a real prospect when current furlough schemes cease. In any case, Sommarribas says the complications will make many would-be migrants “think twice before coming”. On the Brexit front, Sommarribas believes Luxembourg employers will continue to fight tooth and nail for experts to gain from the City’s loss of passporting rights. A surprise benefit from this divorce could be Luxembourg’s research sector. In the mediumterm, master’s students may also be more inclined to choose countries like Luxembourg over the UK, because of the low cost of studies, as well as the flexibility of having a Schengen visa. J.B.

Photos¯ Mike Zenari ¯ Nader Ghavami (archives)

Resident and cross-border migrants make up 73% of Luxem– bourg’s workforce. For the past ten years they have consistently boosted the resident population by over 10,000 annually. 2021 could disrupt these trends.

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JANUARY 2021

Financial services, particularly the investment funds sector, have lots of potential growth opportunities to seize in 2021

Finance

WORDS

Aaron Grunwald

he financial sector did fairly well during the crisis: profits and jobs held up in 2020. The outlook for 2021 is less bullish--both profits and jobs will come under pressure--but not negative. Financial services will likely remain one of the main engines of the grand duchy’s economy, and is still firing on all cylinders despite some flat tyres. (Apologies for the poorly used and mixed-up metaphors in this introduction.) While loan books may start to sour, banks are confident they can manage the turbulence. Plus, many of Luxembourg’s big banks serve the investment fund sector, which has recorded healthy inflows and probably will continue to do so. Some have a sunny outlook. One private equity fund executive says in this section that his industry will likely “outperform” the public markets. Indeed, alternative funds (as opposed to funds geared to retail investors) are set to grow globally and particularly here in Luxem-

Finance

A dynamic funds industry is helping the financial services sector start 2021 on a relatively positive note.

bourg (partly due to Brexit). Fund management companies (mancos), which handle key operational functions on behalf of asset managers, have been a burgeoning segment in the grand duchy. While mancos are set to continue expanding (and hiring), there are some (surmountable) stumbling blocks along the way. The asset management sector is “all about ESG” right now, says Enrique Sacau, the newish CEO of Kneip. He is referring to environmental, social and governance criteria, which are meant to guide sustainable and responsible investments. In Sacau’s view, ESG includes how bosses behave, not only how fund outfits manage investors’ money. “Diversity and inclusion are definitely part of that journey. We are very aligned to what our clients see as priorities.” But we begin this section with a look at new European ESG rules that could, as one EU official puts it, “shift the mindset from greening finance and financing green”. ×

GROWING INTEREST

European rules on green investing start taking effect in 2021. Legal advisors like Stéphane Badey at Arendt & Medernach have been explaining the coming requirements.

WORDS

Stephan Evans

emand will continue to grow in 2021 for financial products that meet environmental, social and governance criteria. Regulators are keen to encourage this. Rules on green investing are currently being rolled out, and the next phase is being planned regarding action on other sustainable investment criteria. European policymakers want to create greater transparency for investors by taking the EU regulatory framework to new levels. Yet this is even before the current wave of green investing rules have been implemented by the financial sector. The first deadline for the sustainable finance disclosure regulation is 10 March 2021,

“2022: The growth opportunity of the century”, PwC Luxembourg, October 2020

A new push for sustainable finance

Funds industry

followed by the requirement to “comply or explain” the sustainable investment approach of investment products produced by large financial market participants by 30 June. After this will come the need to align portfolios with the green investing “taxonomy” classification, and then disclose the results. This will need to be done partially from the start of 2022 and fully a year later. Many of these rules still need further clarification from the European Commission. As well, fund players will need to become acquainted with EU definitions. For example, Stéphane Badey, a partner with Arendt & Medernach (pictured), spoke of how the rules talk of the concept of “doing no significant harm”, during a Luxflag conference in October. “If you have a wind farm that negatively impacts indigenous people’s land rights then this would not meet the criteria,” he explained. Yet while regulators and financial sector players are working to understand and make practicable these new ways of thinking, the EU executive is preparing for the next push. “We are now exploring whether the taxonomy could and should be extended to social objectives,” the European Commission’s Martin Spolc said during a Luxembourg for Finance forum in October. As for the governance dimension, the commission has already announced an initiative on this for 2021, and at press time was in the public consultation phase. Spolc said: “We need to shift the mindset from green× ing finance to financing green.”

Photo © Matic Zorman (archives)

JANUARY 2021

According to PwC*, ESG compliant assets are set to account for up to 57% of the total holdings of European investment funds by 2025. This figure won’t shock anyone in the Luxembourg financial sector, as whether it is in funds, life insurance or wealth management, clients over the last couple of years have been increasingly looking for products featuring sustainability goals.

Investing for Change Forward-looking management and responsible action are the foundations of our business success. We are committed to the principle of sustainable action as an important strategic pillar. This is how we make banking an investment for the future.

VP Bank (Luxembourg) SA 2, rue Edward Steichen · L-2540 Luxembourg T +352 404 770-1 · info.lu@vpbank.com · www.vpbank.com VP Bank Group is based in Liechtenstein and has ofﬁces in Vaduz, Zurich, Luxembourg, Tortola/BVI, Singapore and Hong Kong.

JANUARY 2021

HOW WILL MANCOS TACKLE THEIR TOP CHALLENGES? Olivia Tournier-Demal, managing director, MJ Hudson in Luxembourg, shared her thoughts:

Will private equity funds be a bright spot? Claus Mansfeldt, managing director of Swancap and chair of the Luxembourg Private Equity & Venture Capital Association, says PE funds will likely outperform in 2021. In the midst of the pandemic, Swancap, a private equity firm, was seeking €250m for its Swan IV co-investment fund, but “we ended up raising €300m, 20% above our target,” recounts Claus Mansfeldt. And while valuations in their portfolios took a hit in the depths of the crisis, they bounced back mid-year and regained all the lost ground. Private equity “displays lower volatility than public markets,” he argues. “So it won’t surprise us if private equity continues to do reasonably well” in 2021. “We’ve seen it before, through previous crises, PE has held up.”

Mansfeldt says PE outperforms by “maybe 500 to 600 basis points over public markets.” That said, he views PE more “as a complement than a complete alternative. It’s a stabiliser in the portfolio.” Another bright spot: Brexit “has already for years” helped Luxembourg grow as a PE centre. Brexit has “been one of the many factors that have led PE firms to look to Luxembourg for their fund domiciliation and fund management operations. And I’d guess this will play out more, more as a fact than as a precaution” as the transition period ends on 31 December. A.G.

ALTERNATIVE ASSETS UNDER MANAGEMENT Private equity Private debt Infrastructure Real estate

*2020 figures are annualised based on data to October In billion dollars 10,000

8,000

6,000

4,000

2,000

0 2019

2020*

2021

2022

2023

2024

2025

Source ¯ Preqin, “The future of alternatives 2025”, 16 November 2020

Private equity AUM is forecast to experience a compound annual growth rate (CAGR) of 15.6% between 2020 and 2025, per Preqin, a data firm. Debt funds will see 11.4% CAGR, infrastructure funds 4.5% and real estate funds 3.4%.

How will mancos face their regulatory challenges? We hear that the tsunami of new regulations is over. It nevertheless has left a very high tide, and Luxembourg needs to attract the best surfers! Management companies have had to make considerable investments in human and IT resources to adapt and keep up with their ongoing obligations. 2021 will also--finally--open the post-Brexit era. A lot of uncertainties there as well. UK and EU actors are obliged to prepare for various alternatives. Many managers are hesitating to make a move pending official guidelines. We believe that Luxembourg as a market is ready to absorb a shift of business. Hopefully, this will be accompanied by human migrations because one of our challenges is recruitment of experts.

Photos ¯ Mike Zenari

AARON GRUNWALD How will fund management companies (mancos) face their profitability challenge? OLIVIA TOURNIER-DEMAL The industry’s cost base continues to increase faster than technology solutions can be developed and implemented to contain the costs, and there is healthy fee pressure from clients. The revenues of third-party management companies like us are somewhat dependent on the success of the fundraising by the initiators of the products, but independent from the performance of the investments. We offer the same--high--level of service during the whole fund life cycle. What we have already seen in 2020 is pressure to align fees to the fund cash flow to a greater extent, for example, investment managers wish to pay fees once investments are made and not before. These aspects need to be taken into consideration when structuring our fees in the future.

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JANUARY 2021

Workplace

Will this be a good year for equality in the financial sector? Enrique Sacau of Kneip wants financial employers to be “deliberate” when it comes to diversity and inclusiveness. WORDS

quality and diversity in the workplace means “people can bring their true selves to work”. So says Enrique Sacau, who was named group CEO at Kneip, a fund data management company, in July 2020. “Identity is not a private matter. Your gender identity, your sexuality, your race, your religion, people say it’s a private matter. It’s not.” Sacau says that bringing personal identity “to the office is essential” because if you can’t, then “you will feel less safe. And I don’t want anybody in an organisation I lead to feel unsafe about their identity and not be able to express themselves freely.” When they can, it makes for “better employees and improves the quality of the organisation.”

Aaron Grunwald

PHOTO

Mike Zenari

“I am married to a man,” he explains. When he worked in the City of London, “I wasn’t sure I could be open in the office.” That took a toll on his performance, Sacau reckons. It is important “to be out to employees and clients… it’s an important matter to me personally.” As for covid-19, “the pandemic hasn’t had any good effects on anything generally,” but it placed unique burdens on some. Many “saw the workplace as an escape valve, a separate world than their families” as “some families can be difficult,” as he puts it. There has, however, been an upside. “Computer screens make us more equal.” Teleworking broke down “cliques at work… the boys who go to the pub after work and the girls don’t get to take part

in those discussions.” In that sense, being stuck behind a screen has “equalised us”. In the financial sector, “every year, for many past years, has been better” for equality and diversity. The coming year “will not be an exception”. But Sacau stresses that bosses need to step up their efforts. “Respect is good, but not enough… we have to be deliberate, we have to be open… we have to be more proactive about communication.” His firm, for example, celebrated Pride and Black History Month online during confinement. “We will do a lot more in 2021 than we’ve ever done.” Kneip launches a new initiative, “with a focus on gender, ethnic diversity, LGBTQ, and mental health and disability,” × in January.

Finance

BANKS HOPEFUL FOR 2021

“In a severe but plausible scenario, non-performing loans at euro area banks could reach €1.4trn,” Andrea Enria, chair of the supervisory board of the European Central Bank, told the Financial Times on 26 October. Although Luxembourg branches of banking groups could be affected from turbulence elsewhere, figures from the Luxembourg Central Bank (BCL) suggest they themselves are well positioned. In June, the average capital ratio in the country was 21.4 : more than five times the minimum required by regulations and twice the figure generally seen as being safe by market players. As for non-performing loans, generally these are “isolated cases, and thanks to the good quality of assets, provisioning and credit risk in Luxembourg this should not be an issue,” noted Roxane Haas, banking leader at PwC Luxembourg (pictured). Indeed, many banks have benefited from the covid turbulence, particularly with fees being generated as clients adjusted their portfolios. The BCL reported a 9.3% increase in profits in the second quarter of this year, compared to the same period of 2019. The private banking industry appears to be in good shape, with a 17.9% increase in assets under management last year, said the ABBL’s Private Banking Group. Depositary and custodian banks working with the fund industry will have benefited as net assets of Luxembourg funds were 2.8% higher in September 2020 than a year previously. There appears to be broad cautious optimism for 2021. A Luxembourg for Finance survey of sentiment of all financial sector professionals conducted during the height of lockdown in May found nearly two-thirds being at least “rather confident” of revenue growth in 2021. S.E.

Covid’s long-term e fect on business meetings Confinement has stress-tested how we meet online, and some of this has proved to be useful, with annual and public meetings in particular looking to be ripe for reform. Management and boards of directors meetings must take place physically in Luxembourg as evidence that companies are genuinely located in the country, and are not “empty shell” operations. Yet the expectation is a move to “hybrid” meetings. It’s likely that we will be more willing to hold preparatory meetings online before final decisions are firmed up face-to-face. We might now also be more willing to accommodate colleagues who might need to dial in. However, it is in the area of shareholder, membership and public meetings that digital solutions could make the greatest change. These tools could be used to maximise the involvement and engagement of a broad stakeholder community, thus strengthening how the leaders of all types of organisations are scrutinised and held to account. This is particularly relevant given the current drive to boost sustainability through strong environmental, social protection and governance standards.

Already in 2020, the Luxembourg directors association (ILA) and the Association of the Luxembourg Fund Industry held their annual general meetings fully online, experiments which appeared to be a success as they increased “attendance” and engagement. “It’s a widely held misconception that the most important part of an AGM is being present live, either in person or virtually. However, legally speaking, the key factor is logging in, reading the documents and voting,” said Georges Bock, chief strategist at Governance.com (photo). All this can be handled electronically, giving stakeholders more time to consider how they would like to engage. Online meetings were facilitated in Luxembourg this year by an emergency change in the law, but Bock hopes this could become permanent where appropriate. Change does seem to be coming, with the Japanese government thought to be considering reform. Will Luxembourg make this change in time for the next meeting season? S.E.

EARNINGS BACK TO PRE-CRISIS LEVELS IN 2021

Source ¯ Refinitiv Datastream, UBS

Photos ¯ PwC Luxembourg ¯ Matic Zorman (archives)

Could the financial sector face a shock when state economic support is withdrawn as the coronavirus is brought under control?

“We expect global economic output and corporate earnings to reach pre-pandemic levels by the end of 2021,” UBS Global Wealth Management said in a report published on 17 November 2020. Here is the bank’s earnings forecast, rebased to 2019 = 100. *Consensus estimates for 2022 **As of 11 November 2020

Estimated earnings

2019

2020

2021

2022*

Share price performance year-to-date**

100

84.5

103.3

120.5

9.7%

Asia ex-Japan

100

98.7

118.4

137.3

9.9%

Euro area

100

58.4

85.7

102.1

-6.8%

100

55.0

75.9

89.9

Switzerland

100

91.0

101.9

112.5

-2.4%

Emerging markets

100

93.4

114.5

132.7

5.9%

Developed markets

100

83.1

103.8

119.8

6.3%

Global

100

84.4

105.2

121.9

6.3%

-16.5%

BRAND VOICE

JANUARY 2021

Pit Hentgen Chairman, LALUX and LALUX-Vie Paul Zahlen Historian

Insurance

Innovation, the key to longevity Thanks to its ability to innovate, LA LUXEMBOURGEOISE has overcome various challenges during its lifetime. The insurance company published a book this year commemorating its 100 years in operation.

echnological change and the move to digital services have changed the human dimension of doing business. “When you need insurance, you can pick up your phone and get it right away. Whoever is able to offer insurance that best suits their customers’ needs will have an advantage over the others,” says Pit Hentgen. Although humans won’t disappear from the equation completely, they must be supported by technology.

LALUX

This development will be central in the way we do insurance in the future. A century of life in the insurance market

To highlight its 100 years in existence, LALUX called on Paul Zahlen to tell its story. For Pit Hentgen, it was interesting to have the gaze of a historian. “It was an identity process because it allowed those of us

who are closely linked to the company to better understand who we are and where we come from. We take a certain pride in this story as it is linked to many people and families who are still present or in our minds.” With his book, Paul Zahlen wanted to show the complex process of creating an insurance company. “It shows the factors that allow a society to live for 100 years, which is × not common.”

Photo © Patricia Pitsch

SPONSORED CONTENT BY

BRAND VOICE

HISTORY IN THE MAKING ↓

Insurance

1920 Creation of LA LUXEMBOURGEOISE. Start of non-life insurance and banking activities.

1937 LA LUXEMBOURGEOISE starts to market life insurance.

1944 Restart of the activity following the dissolution of the company by German-occupied forces during the Second World War.

1970 Transfer of the registered office: 10 rue Aldringen. New corporate name: LA LUXEMBOURGEOISE Société Anonyme d’Assurances, and separation of their banking division. ↑

100 YEARS OF DOCUMENTED HISTORY 1975 Takeover of the Luxembourg automobile portfolio by the Belgian company AG from 1830 (later renamed Fortis).

1981 Takeover of the Luxembourg portfolio Incendies Accidents by the French company GAN.

1989 Subsidiary of insurance activities and creation of two new companies: LA LUXEMBOURGEOISE and LA LUXEMBOURGEOISE-VIE. New partner and shareholder: Spuerkeess.

2011 Relocation of the head office to Leudelange and creation of the LALUX brand.

Written by Paul Zahlen, the two-volume work traces the history of LA LUXEMBOURGEOISE. Through 1,300 pages and several hundred photos, the historian looks back on some key moments during the insurance company’s existence. The beginnings of the company were marked by politics and a challenging investment environment. The period during World War II addresses the fate of its leaders, while the post-conflict period focuses on management issues. Themes such as women’s right to work and remuneration are also covered in the book.

Photos → LA LUXEMBOURGEOISE

2015 Acquisition of DKV Luxembourg.

034_035_BRAND VOICE LALUX.indd 35

2020 LALUX celebrates its 100th anniversary. Takeover of the Employee Benefits activity by the company Cardif Lux Vie.

Would you like to order a copy of the book? Go to www.lalux.lu/fr/infos-outils/ formulaires/livre100ans

04/12/2020 17:40

JANUARY 2021

Expect to see more apps that help with better conservation of resources, both physical and electronic, come to the fore in 2021

2021 could become a bumper year for innovation and digitalisation. While startups prepare to roll out products developed to combat the covid-19 pandemic, data protection and digital tax solutions will be battled out on the international stage.

WORDS

Cordula Schnuer

A “

ll the plans we had just shattered.” This sentence encapsulates the essence of 2020. But for entrepreneurs like Vivien Muller, who spoke these words during our interview, shattered plans meant more than a ruined vacation or cancelled family party. Their very livelihoods were threatened by the coronavirus, which for some, in an ironic twist, also provided a way out of the crisis. The economy ministry together with Luxinnovation in April 2020 launched the StartupsVsCovid19 initiative--injecting up to €150,000 into the winning projects, designed to help fight the pandemic. More than 300 startups vied for the funds, a sign of entrepreneurial spirit but perhaps also of how desperately they needed the cash. Fifteen made the cut. You will read about three of them in this section and their plans for the coming year, as well as an interview with Sasha Baillie, the CEO of Luxinnovation, on what lies ahead in 2021. Some of the biggest winners of the crisis have been Big Tech companies, with Google parent Alphabet, Amazon, Apple

and Facebook raking in $38bn in profits in the third quarter of 2020. With public purses depleted by rescue packages, the pandemic could provide momentum for governments to make progress on a digital services tax. The OECD and the EU are set to announce proposals in 2021. And further challenges await in the digital realm as companies have compliance work to do to update data transfers because of the end of the EU-US Privacy Shield and Brexit transition period. While Sars-CoV-2 continues dominating headlines, another crisis is staring us in the face--climate change. Here too, entrepreneurs are leading the charge, such as the women behind Weo, a startup using artificial intelligence to improve water management as this resource becomes scarcer and more precious. British journalist Andy Beckett, in a December 2019 piece for The Guardian, referred to the 2010s as the “age of perpetual crisis”. Little could he have foreseen the “annus horribilis” that would follow but that could, in hindsight, still become a start× ing point for meaningful change.

Innovation & technology

JANUARY 2021

Sustainable urbanisation

Better living through H2O Weo co-founders Charlotte Wirion and Imeshi Weerasinghe say better water resources management can have a significant impact on urban transformation.

eo takes data from space--satellite images, for example--and via deep-learning algorithms provides its clients with maps and derivative information which can be used to improve the quality of living, especially in cities. As co-founder and CEO Imeshi Weerasinghe explains, such information can reveal “where you can have potential green roofs, or [see] how healthy the urban vegetation is [and] also where we have a lot of impermeable surfaces in cities, such as carparking spaces, [which could] maybe change to permeable surfaces so that water can get through.” Weerasinghe and fellow co-founder and CTO, Charlotte Wirion, registered their company in Luxembourg in March 2020. The pair met while working on their PhDs in Brussels. Weerasinghe, who formerly did project management at the Australian Bureau of Meteorology before arriving in

Natalie A. Gerhardstein

PHOTO

Uli Schillebeeckx

Europe, also has degrees in water resources management and economics. Wirion’s background is in environmental science and engineering; she previously did landslide research with the US Geological Survey. “Throughout all this research experience, what we found missing was a continuous way of giving this information to administrations and engineering offices,” Wirion says. Weerasinghe adds that such research doesn’t always get “translated to application purposes”, but the pair’s idea is that water management agencies, urban planners and engineering firms can use the reports for more efficient water and vegetation management, plan for seasonal variations, and improve agricultural planning. “It’s also important for urban climate and urban wellbeing and liveability,” Wirion adds. “By tackling urban water management you also tackle a lot of other areas for citizens.”

Currently the team is focused on open data for its solutions “because it does bring the costs down a lot, and it’s much more accessible,” Wirion says. While Weo is now in talks with a number of potential clients, there is also vast potential for their data to be used in other regions. “Right now we focus a little bit on the Benelux region, and at the moment a lot in Luxembourg,” Weerasinghe explains. “But our goal is to go global and × do work in developing areas as well.” ©

www.weo-water.com

1,800km Luxembourg’s hydrographic network, of which many small rivers are susceptible to seasonal variations and flooding.

Source © Environment ministry

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Startups to look out for

JANUARY 2021

The economy ministry and Luxinnovation in April 2020 asked startups to help tackle the pandemic. Here are three of the companies that answered the call. WORDS

Cordula Schnuer

Giving a voice to intubated patients 1

Based on a successful app helping people with speech impediments communicate, Luxembourg startup Sovi Solutions is working on technology to enable intubated patients to connect with healthcare staff. Founded in 2019, Sovi has developed speech generating device Talkii. “It’s symbol-based communication,” says Alessio Weber, one of the co-founders. Users select pictograms for the device to read out loud. It’s not just objects that the app can process but users can also build sentences. Targeted customers include parents of children with

Taking corporate governance online 3

As remote working continues gaining traction in the wake of the coronavirus pandemic, startup Stampify is developing solutions to move company governance into the digital realm, too. Functionalities include managing board meetings but also automating the calculation of the quorum, majority and strength of votes whenever board members need to vote on an agenda item. Other options include the digital signing of documents and electronic shareholder registers. Stampify ensures “resilience and responsiveness of corporate governance, even in times of strict physical distancing,” says Guillaume de Vergnies, Stampify’s chief executive officer. The startup received €116,000 under the government’s

autism or Down’s syndrome, but also adults who suffer from speech impairment after a stroke or muscular disorders. The roughly 1,000 pictograms in the system can be customised and more are continuously being added. With a cash injection from the government, the entrepreneurs are now looking to specialise the app to meet the demands of the hospital context. “Intubated patients have difficulty expressing themselves verbally and making themselves understood,” says Weber. The team is working with hospitals and healthcare professionals to develop the right pictograms and interface, for example, with specialised symbols. The new solution could also work as a translator to help patients who don’t speak one of the country’s languages to communicate with healthcare providers, Weber says. The development will cost €170,000, with Sovi expecting €150,000 from the government and injecting the other €20,000 from its own capital. Sovi plans to launch its new app in the second quarter of next year but sees its application lasting much longer than the pandemic for patients intubated for reasons other than covid-19. ©

www.sovi.lu

www.talkii.app

StartupsVsCovid19 grant programme in recognition of its potential. “The pandemic is accelerating a global shift towards digital,” says de Vergnies, with regulatory technology (or regtech) playing an important role. “It will allow Luxembourg’s financial centre to manage ever more efficiently an everincreasing amount of regulation,” the CEO says about Stampify’s future, even past the pandemic. With the government’s financial boost, Stampify was able to fully launch in November 2020 and for 2021 plans to expand the breadth of its services to include more aspects of corporate administration, “always offering solid audit trails, backed with blockchain,” says de Vergnies. It is also planning on expanding its geography, adding to the 147 nationalities the platform can already onboard. ©

www.stampify.eu

A smart door handle

Startup Mu Design is looking to roll out a self-sanitising door handle in 2021 that works with UVC light to kill germs. “We have a prototype,” says company CEO Vivien Muller, with the funds injected through the StartupsVsCovid19 programme helping to develop the prototype further, order materials and carry out tests with an independent laboratory. “By the end of [the] year, we will be able to mass-produce the product,” he estimates. Potential customers--such as offices or hotels--are already lined up in Belgium and Luxembourg. The handle also includes a screen, for example to display room bookings or other information. The move towards corporate clients is a shift for Mu Design, which has so far developed consumer electronics, such as a home camera system. But the startup was able to repurpose technology it uses in some of its other products. This includes sensors to make sure the UVC light only turns on when people are at a safe distance, as the rays can be harmful to human eyes and skin, Muller explains. The project provided a lifeline for Mu Design. During lockdown, “our suppliers were closed. Our assembly line couldn’t work,” says Muller. “All the plans we had just shattered. We had to rethink our whole strategy.” ©

www.mu-design.lu

Photos ¯ Sovi Solutions ¯ Stampify ¯ Mu Design

SASHA BAILLIE

Value generation

The data dimension Luxinnovation CEO Sasha Baillie explains how the smart use of massive data and its applications bring a host of opportunities.

WORDS PHOTO

Natalie A. Gerhardstein Mike Zenari

Sasha Baillie says Luxinnovation has been in full “listening mode”. Among recent trends they’ve noticed, “what’s really been essential is that client behaviours have changed,” the CEO says. “Consumers are behaving differently, so companies have to adapt to that, and a lot of that is around digital.” Coupled with that, “there’s definitely more awareness for sustainable solutions. Clients want more sustainable solutions [and] products that respect these values much more.” Baillie is optimistic: despite recent challenges, there are a host of opportunities, with the national innovation agency helping to provide tailor-made solutions for companies.

www.luxinnovation.lu

“I’m being ambitious, but maybe, as a country, we can also be an example, a testbed for certain solutions. It’s very difficult at this stage to see precisely what that is, but we do get a sense that there’s something out there that we can grasp,” she says. A main focus into 2021 will be data, and good governance thereof. “If we can connect the dots between data, make it interoperable, we can be much more precise in the solutions we can bring.” Such data has vast potential--from regional food chains and precision farming, to utilising space data for intelligent applications. But privacy has to be guaranteed in full, “otherwise it’s not going to be trusted, [nor] usable”. The agency has an ambitious mission to map out key Luxembourg sectors--a mechanism which should allow players, locally and beyond, to understand the national landscape and have a dynamic view on the sector. Some mapping is complete--health tech, cybersecurity, wood value chain, to name a few--while startups and industry 4.0 are on the horizon. In the case of startups, for example, Baillie hopes the mapping will glean information on the full ecosystem, including which startups have evolved, or even disappeared. In addition, it could give a sense of the private or public investment behind each startup, as well as value generated, also in terms of potential new businesses developing and growing in the grand duchy. “You need the whole picture of the whole value chain, and the companies working [in] that. If you can connect them, you can do so much more with this × wonderful resource at our disposal.”

Innovation & technology

The CEO of Luxinnovation says it’s key to “completely understand the needs of companies and get their perspectives”. The national promotion agency provides on-the-ground expertise while alerting companies to challenges, keeping them “prepared, aware and stimulated to find their own solutions”.

JANUARY 2021

TAXING DIGITAL SERVICES, BUT HOW? Delano asked Katerina Pantazatou, University of Luxembourg associate professor in tax law. What can we expect of an EU digital tax in 2021? KATERINA PANTAZATOU We don’t know what the European Commission will come up with because there is big disagreement within the union. There are member states very much in favour of moving fast, others prefer to leave it to the OECD and have more global consensus. Whatever proposal the European Commission adopts, it would have to receive unanimous approval and that doesn’t make it any easier. CORDULA SCHNUER

Nearly three years after the introduction of the EU’s General Data Protection Regulation, companies have learned a lot, but challenges remain. With the EU-US Privacy Shield declared invalid by the European Court of Justice in July and the Brexit transition period ending on 31 December 2020, “there will be a lot of compliance work that companies need to do” in 2021, says Tine A. Larsen, president of Luxembourg’s data protection watchdog, the CNPD. The Privacy Shield provided a regulatory framework for data transfers between EU countries and the US. Companies who based their data transfers on this mechanism must find ways to ensure adequate levels of data protection. “We cannot do this work for them,” says Larsen. But the CNPD provides support and Larsen says companies have more experience with data protection issues since GDPR. The prospect of a Joe Biden White House makes Larsen optimistic that a successor to the Privacy Shield could be negotiated. Among the key concerns are the access to data by US

intelligence agencies and EU citizens being able to file complaints over privacy violations. A similar framework might yet have to be put in place with the UK in 2021. Even though the EU has agreements with countries like Switzerland and Japan testifying adequate levels of data protection, for the UK “this hasn’t been validated by the [European] Commission yet,” Larsen says. “The UK adopted GDPR into national law, so the likelihood of an adequacy decision is very high, but it could take at least a year.” In the meantime, the CNPD has been in contact with “at least half a dozen companies” who moved their headquarters from the UK to Luxembourg to avoid transferring data outside the EU. The CNPD checks that the businesses really have a presence in the grand duchy and that management decisions are taken here. To avoid data protection compliance issues, Larsen says, “it’s not enough to have a letterbox in Luxembourg”. C.S.

RESEARCH

“The pandemic shows how science benefits society. We’ll continue our mission to foster research in 2021. "

Marc Schiltz Secretary general of the Luxembourg National Research Fund (FNR)

What are the chances of an OECD deal happening? There is still a long way to go. The proposals are quite detailed and complex to follow. At the same time, they are very general, and crucial elements are missing, for example, what types of businesses would even be affected by such a new tax. The OECD is in a race trying to prevent national digital services taxes from popping up, like in France. Companies aren’t in favour of unilateral measures because they face a higher administrative burden. At the same time, countries fear retaliation--such as tariffs--from their partners if they introduce something on their own. Could the pandemic speed up the process? Digital taxation is not at the top of the priority list when you’re dealing with saving lives. At the same time, there is a higher need for revenue. The question is how much revenue a digital tax will generate, and the estimate is: not very much. But until the proposal is more concrete, it will be difficult to predict. There are too many variables right now to make a clear statement on how a country, like Luxembourg, would be affected.

Photos ¯ Matic Zorman ¯ University of Luxembourg

“A lot of compliance work companies need to do”

The magic never stops We wish you a happy and healthy holiday season. May the magic of Christmas light up your home. Leo, fournisseur d’énergie de la capitale Serviceline 8006-4848 • www.leoenergy.lu

JANUARY 2021

“If you build it, they will come,” a film once posited, and that will be the case for Luxembourg in 2021

Little Luxembourg is quickly growing to live up to its title of grand duchy, but the rise in population and cross-border workers has pushed infrastructure to its limits. Everyone recognises the problems, but what is being done about it?

WORDS

Cordula Schnuer

uxembourg’s housing and transport struggles feel like a tale as old as time. But there is perhaps a greater sense of urgency to tackle these issues, fuelled by the pandemic’s economic crisis. Associations and individuals demanding affordable housing are getting organised and community activists are pushing policymakers to act. Reforms of lease agreements, building funds for communes, and rules for developers are all in the pipeline. But people are also looking for new ways of living. “There is a rethinking happening,” says Denis Weinquin, who lives in a tiny house, a habitat that could gain more traction in Luxembourg in the year to come. Read more about Weinquin and the people demanding housing justice in the following pages. Areas in Luxembourg City geared more towards working than living resembled urban wastelands for much of 2020, as office blocks lay vacant and restaurants and shops suffered from workers being tucked away at home to help contain the spread of the coronavirus. But the end of prestige offices is far from nigh, as more

blocks will be added over the coming year. There are 4.4 million square metres of office space in the grand duchy--that is twice the principality of Monaco’s territory, a statistic to whip out whenever someone mocks Luxembourg’s diminutive size. And still, “we are in an owner’s market,” says Ahmed Kahilia of real estate group CBRE. Here too though, the future could hold new and different things. Offices could move from the centre to the periphery--helping decongest a busy capital city while at the same time cutting down the commutes of cross-border workers. Or might politicians agree on becoming more flexible about remote working in the long term, allowing more days of teleworking before double taxation kicks in? Because Luxembourg has serious work to do if it wants to meet its ambitious climate targets of reducing emissions by 55% by 2030. The “silent cities” of lockdown days could help speed up the transition to electric vehicles, say experts, as models are becoming cheaper and greater in number. All signs point towards change, if only we × seize the opportunity.

Urban life

Development

Building the city

JANUARY 2021

Luxembourg’s capital may feel like a perpetual construction site, but from the new national stadium to residential high-rises and smart design offices, here are just some of the building sites that will close in 2021 for the new developments to open their doors.

Arlon, Brussels

ROYAL PARK Located in the heart of Luxembourg City, Royal Park will add more than 10,000 square metres of office space to the capital.

CEMETERIES DEPARTMENT The cemeteries department manages the capital’s 13 burial grounds and Bertrangewill be doing so from new offices inStrassen Merl-Belair. EXPECTED DATE

BUDGET

End of 2021

€16.4m

EXPECTED DATE

BUDGET

End of 2021

N/A

STRASSEN

BERTRANGE MERL

NATIONAL FIRE AND RESCUE CENTRE The new CGDIS HQ brings together the 112 call centre, vehicle fleet and offices, but also training grounds. EXPECTED DATE

BUDGET

Early 2021

€141m

Leudelange-Gare

SCHLÉIWENHAFF

STADE DE LUXEMBOURG LEUDELANGE

Cordula Schnuer Maison Moderne / Maps4News

WORDS MAP

The grand duchy’s national stadium will welcome football and rugby competitions with 9,385 seats for fans. EXPECTED DATE

BUDGET

Spring 2021

€76.6m

Airport Gare de Dommeldange

KIRCHBERG

CHAMBRE DES MÉTIERS

EICH

The Chamber of Skilled Trades and Crafts (Chambre des Métiers) is adding 600 square metres of office space with a wood-cladded rooftop expansion. LIMPERTSBERG

EXPECTED DATE

BUDGET

Early 2021

N/A CENTS PfaffenthalKirchberg

INFINITY Complementing the shopping centre that opened in 2020, the Infinity residential tower will add 150 apartments to the district, all already sold.

ROLLINGERGRUND

BELAIR

LUXEMBOURG

EXPECTED DATE

BUDGET

Early 2021

N/A

Cents-Hamm

TRAM The tram will be travelling to the central train station by the end of 2020 but works on the tracks and stations along the way continue in 2021.

BONNEVOIE

EXPECTED DATE

BUDGET

Summer 2021

N/A*

* The overall budget for the tram is €565m. Luxtram could not indicate the cost of the works carried out in 2021 alone

Luxembourg Central Station

Hollerich

ITZIG

CESSANGE

ZENITH Scheduled to open in 2019, the Zenith towers at Cloche d’Or should finally welcome residents in 2021.

GASPERICH

EXPECTED DATE

BUDGET

Early to mid-2021*

N/A

*Depending on the tower and apartment Howald

WELL 22

HESPERANGE

A3 Thionville, Metz

The office building is set to be the first in Luxembourg to be Well certified, a marker of promoting the mental health and wellbeing of its tenants through design. EXPECTED DATE

BUDGET

Summer 2021

N/A

Photos © Böge Lindner K2 Architekten, Caroline Martin, SchemelWirtz Architectes Associés, Romain Gamba, Beiler François Fritsch/Baltisse, Steinmetzdemeyer/IKO, Immobel, M3 Architectes, Luxtram

HOLLERICH

ETTE ALZ

LITTLE FREE SPACE

JANUARY 2021

There is a total stock of around 4.4 million square metres of office space in Luxembourg, around twice the size of Monaco. Only around 140,000 square metres (3.2%) are empty, according to research by CBRE, with vacancy rates even lower in the Luxembourg City centre and Kirchberg, and prime rents in those districts going up. The country is expected to add 150,000 square metres of office space in 2021.

days for cross-border workers. I don’t think that we will continue to work from home in 2021 as massively as in 2020. And companies will want more space to de-densify, for example in open plan offices. How will these developments impact prices?

Commercial real estate

It’s still an owner’s market Even though offices in Luxembourg were left deserted in the wake of the coronavirus pandemic, life should return in 2021.

hmed Kahilia--consultant at commercial realtor CBRE--remains optimistic about the market in 2021, estimating that demand for office space will remain high even if prices may stabilise. What impact will teleworking have on the office market?

CORDULA SCHNUER

Real estate is the second most important expense for businesses. It’s something that companies are scrutinising, and we can imagine that some companies will want to optimise their space and reduce costs. But the situation in Luxembourg is different from that of our neighbours because of the limited number of teleworking

AHMED KAHILIA

WORDS PHOTO

Cordula Schnuer Mike Zenari

In the current context, we won’t see a fall in prices but rather a stabilisation. We are in an owner’s market and there are very few availabilities in core districts. In 2020, takeup will be at more than 200,000 square metres. There is very little speculative construction in Luxembourg. Buildings are pre-let. Before starting construction, the first step is to try to find a tenant. What could change in future is that the time to market the properties will get longer because companies want to delay making any decisions. In the medium term, we are in uncertainty linked to the health crisis. What is the future for business districts like Kirchberg?

The stakes will be accentuated especially at the level of mobility and infrastructure. Statec [Luxembourg’s statistics bureau] estimates 600,000 cross-border workers by 2040, versus 200,000 today. This is a major issue for developers who will have to find the right locations. It is a safe bet that districts on the border will become very popular. Some companies might choose a smaller central office with satellite locations elsewhere in the country. Because of the pandemic and remote working, spaces like Kirchberg have been pretty empty. We have seen a lot of shops unfrequented, also in avenue de la Gare and Grand-Rue. For commercial spaces in those areas, it will depend on the evolution of the crisis as everything is correlated--gross domestic product, jobs, demand for offices and consumption in commercial spaces. ×

A C Q U I S I T I O N S I S A L E S I R E N T A L S I V A L U AT I O N S I I N S U R A N C E I R E A L E S T AT E C O N S U LT I N G

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Housing reforms on the horizon

JANUARY 2021

To tackle Luxembourg’s housing shortage and rising property prices, the government launched a series of reforms that should be implemented in 2021. WORDS

Cordula Schnuer

“It doesn’t solve the problem” 1

A reform of lease agreements should come to a vote in parliament in 2021. Among other things, it reduces guarantee payments from a maximum three months’ rent to two months’ as well as splitting agency fees between tenant and owner. But Mieterschutz, a not-for-profit protecting tenants’ rights, warns the reforms aren’t far-reaching enough. “If the owner wants to use an agency, then they should pay for it,” says Jean-Michel Campanella, the organisation’s president (pictured). And while lease agreements in future need to mention rent commissions

New housing pact

where tenants can complain if they feel they are being overcharged, Campanella says procedures need to become easier, too. “You need to send a registered letter to the landlord that meets certain specifications. Only when you don’t get an answer can you contact the commission, also adhering to several legal dispositions. Most people cannot manage this on their own,” he says. Mieterschutz is planning on making templates available on their website soon. The reform of lease agreements also updates the 5% rule--meaning that annual rent cannot be higher than 5% of the capital invested in the property. But rent on many new builds already lies below this value. “It doesn’t solve the problem,” says Campanella. “Everyone can ask what they want.” While the reform aims to be stricter, it also makes the calculation of rent more difficult, the organisation warns. “We’re already seeing contracts stating the tenant agrees that the lease respects the rules, meaning the owner passes the responsibility to the tenant.” The group is lobbying MPs to make further changes to the draft law before it comes to a vote. ©

Regulating shared housing 2

Plans by the City of Esch-sur-Alzette limiting options for people to live together could come to a head in 2021. “It’s absurd,” says Justine Blau, a community organiser who herself lives in a flat share. “In any other city it’s normal. We don’t understand the commune’s response.” After protests and petitions against the restrictions, the government intervened, warning the commune it was overstepping its powers. As part of the lease reform, the housing ministry proposes a co-tenancy contract between tenants and owners, for example, setting out the distribution of rent and bills payments. Owners will also be able to continue renting rooms out individually, with ceilings on how much rent they can charge in total. “There are so many different forms of house shares and reasons people choose to live together,” Blau says, warning of unnecessary overregulation, especially in a university town. “There are already rules on cleanliness and occupancy,” she says. “We’re not sure if this law is the right solution.” The Commune of Esch is expected to decide on its own set of rules at the start of 2021. Until then, “there are meetings, discussion. We’re lobbying, being present, and keeping the topic at the top of the agenda,” says Blau about the community activists.

www.mieterschutz.lu

A new version of the so-called “Pacte Logement” will come into effect in 2021, a programme supporting Luxembourg’s communes to create more housing for the country’s growing population. “The Pacte Logement 2.0 is aimed at primarily creating social and affordable housing,” says interior minister Taina Bofferding (LSAP), who counts the government’s relations with municipalities among her responsibilities. “It’s important that communes aren’t left alone with this mission.” Under the new housing pact, communes sign an agreement with the state under which a housing consultant helps local authorities draw up an action plan. The state and communes then agree on financial support to implement the plan. Municipalities must submit an annual progress

report. “If we want to advance in the question of housing, there is no way past the public sector, communes and the state, to take responsibility and get more active,” Bofferding says. A minimum of 30% of new housing developments must be affordable under the Pacte Logement 2.0. To combat land speculation the minister has also proposed stricter deadlines for developers to begin construction once they have secured buildable land. More than 2,840 hectares of land fit for construction are lying idle despite a shortage of homes. The same reform will make it easier for authorities to group together smaller parcels of land for construction. “Through all these instruments communes can better and more actively steer their own development,” says Bofferding.

Photos ¯ Matic Zorman ¯ Romain Gamba

51 British Chamber of Commerce chair Daniel Eischen is pictured charging his car

Urban life

Mobility

Chicken and egg question solved In 2020, Luxembourg energy minister Claude Turmes estimated that in 2021, most cars in Luxembourg showrooms would be electric or hybrid. WORDS

[1] Fedamo © [2] European Alternative Fuels Observatory

ritics say the Green party energy minister Claude Turmes’ electric vision to have half of the country’s private vehicles as EVs is “utopian” but his optimism is not blind. Faced with EU pressure to reduce carbon emissions (CO2 capped at 95g/ km in 2020 and 65g/km in 2025), manufacturers, among them luxury and muscle brands like Bentley and Harley-Davidson, are rolling out electric and hybrid plugin (PHEV) models. “OEMs are really coming with models--I think the chicken and egg question is solved,” says Philippe Vangeel of the European electric vehicle federation Avere. If EVs and PHEVs don’t dominate showrooms, they will be more numerous than their diesel counterparts--across Western Europe PHEV and EV sales in 2020 are outstripping those of diesel. Vangeel

Jess Bauldry

PHOTO

Mike Zenari

credits the pandemic for this change of mindset. “Worldwide, we have seen what it means to have silent cities and clean cities. This is a side effect of e-mobility.” In Luxembourg, diesel fuel duty hikes and a €2,500 cashback on new PHEVs and €5,000 on electric and hydrogen-fuelled vehicles have helped, but progress is slow. At the start of 2020, EVs and PHEVs made up 2.5% of the nation’s fleet. They accounted for 16.5% of the 4,073 vehicles sold up to September[1]. Further inspiration could be found in Norway, where EVs make up 80% of sales. It scrapped tolls, VAT, road tax and parking fees for EVs and will ban the sale of internal combustion engine vehicles by 2025. Adjusting behaviour remains a barrier in Luxembourg, particularly when it comes to charging. Batteries will have to

be topped up more frequently and charging will be done anywhere “like with a mobile phone”, says Vangeel. Another barrier is the perception of a scarcity of charging points. In 2020, Luxembourg had 965 charging points--one for every seven vehicles[2]. The EU’s alternative fuel infrastructure directive, which aims to have 1 million charging points on the road by 2025, could help diminish battery anxiety. Arguably, the biggest change will come in 2024 when the cost of owning an EV or petrol vehicle will reach parity. Vangeel says: “In many ways the total cost of ownership [for an EV] will be cheaper in a × few years.”

JANUARY 2021

KIRCHBERG’S CHANGING FACE Three projects on the horizon: 1

Transport hub Located near the Serra roundabout and Luxexpo in Kirchberg, the “Pôle d’échange rond-point Serra” transport hub will finally open in the spring of 2021, after construction delays in 2020. The development includes a bus station (already operational), a car park over five levels with 595 parking spaces, and two office buildings. Talks with potential tenants are still ongoing, said the Fonds Kirchberg, which manages the project, but a small Cactus Shoppi supermarket and Kaempff-Kohler deli are already confirmed.

Avenue Kennedy-Parc des Trois Glands bridge Materials tests for a pedestrian and cycling bridge linking avenue John F. Kennedy with the Trois Glands park will begin in February 2021. The bridge is designed to blend into the wooded area and must meet environmental criteria to limit wildlife disruption. Four metres of the bridge will be built at the start of 2021 to allow for any final adjustments before works properly begin in the autumn. The bridge is expected to open in 2023 after 18 months of construction.

(Luxembourg-based cycling lobby group)

Grünewald revamp While the development of the Grünewald district between rue Edward Steichen and rue Charles Bernhoeft is still a while away, a citizen consultation will be held in the spring of 2021 to discuss the design of a 9,200m2 square that will sit in the middle of a new hotel, co-working spaces, flats, shops and restaurants. The site is currently used as a park and community garden. Some of this will have to disappear with the arrival of the new buildings, and developers want locals to have a say on the future of the public space. C.S.

Big future for tiny houses? Lawyer Denis Weinquin decided to leave traditional ideas of housing behind and embark on his tiny house adventure, encouraging others to do the same. After playing with the idea of investing in his first home for a while, and suddenly faced with an unusual amount of free time due to lockdown, Denis Weinquin began researching alternative eco-friendly forms of housing, which was precisely when he stumbled upon the tiny house concept. “I told myself ‘Just go for it’,” he recounts, and ever since, his 25m2 second-hand house on wheels has become his personal minimalist haven. “You are a lot more independent and free and you don’t have to worry about depth, ” the young lawyer says. With the highest housing costs in the EU, the lack of affordable living space has become a topic of growing importance across the grand duchy. In response, Weinquin says that he is noticing a growing interest in alternative housing forms, mainly because the tiny house offers an affordable yet comfortable solution for those

that may not be able to afford anything else or those who don’t need a big living space and instead seek a more minimalist lifestyle. And indeed, the trend is growing, with Luxembourg even having its own tiny house community now, of which Weinquin is part. “In my opinion, it is clearly becoming more popular in the upcoming year,” he says. “Nevertheless, I want to be realistic because although there is a rethinking happening and people are becoming more interested and open towards the idea of a reduced living space, many will be held back by the amounts of paperwork and the administrative battle currently still in place”, as the legislative situation surrounding tiny houses is still somewhat unclear in the grand duchy. However, Weinquin remains optimistic, hoping that more and more people will pluck up the courage to go tiny in 2021. L.F.

MOBILITY

“Now more than ever we have to invest into the safe and coherent infrastructure cyclists are waiting for."

ProVelo Luxembourg

JANUARY 2021

The government coalition and the â&#x20AC;&#x2DC;loyal oppositionâ&#x20AC;&#x2122; in parliament pass the mid-term mark with mixed reviews and a full agenda

Politics

WORDS

Duncan Roberts

2021

will start with a bang when Joe Biden is inaugurated as the 46th president of the United States on 20 January. Biden’s victory, together with running mate Kamala Harris, in the 2020 presidential election proved to be every bit as dramatic as one would expect in this unprecedented year--and at the time of writing had still not formally been approved by the electoral college, which meets on 14 December. But it was also a victory that breathed new hope in those who, like University of Luxembourg associate professor Josip Glaurdić, welcome a chance for a reboot in transatlantic relations. But the year will also end with a whimper when Angela Merkel steps down as German chancellor following elections to the Bundestag, the precise date for which has yet to be set. In 2020 Merkel celebrated 15 years at the head of the German government, during which time she has been a truly European leader, influencing policy from migration to crisis recovery. Love her or loathe her, Merkel will be missed at home and in the EU. Back in Luxembourg, the government faces a series of challenges. Some resulting from the fallout from the covid-19

Politics

Two dominant political leaders leave the world stage in 2021. Closer to home, the role of parliament will continue to come under scrutiny.

pandemic, others a hangover from the coalition’s first term in office, and several that are systematic structural problems that have long blighted the grand duchy. As it approaches the halfway mark of its five-year term, the coalition needs to engage and display greater willingness for consensus and more transparency in its dealings with parliament. Indeed, the lessons learned from this crisis and how much of them we take on board is going to be crucial to the economic and social wellbeing of the grand duchy. As incoming déi Lénk MP Nathalie Oberweis points out, when coronavirus first hit there was a general recognition that the existing political-economic system was both part of the problem that exacerbated its spread, and that it was no longer sustainable after the pandemic. But reaction to the second wave has shown that those lessons are by and large being ignored as we once again become creatures of habit. If 2021 requires politicians to do anything, it is to find the courage to tackle long-standing problem areas, including inequality in all walks of life, in-work poverty and the intransigent guardians of the × grand duchy’s education system.

JANUARY 2021

They’re all committed to bringing the US back into the Iran nuclear deal. They’re committed to the Paris climate accords, they’re committed to, obviously, multilateralism when it comes to fighting things like the pandemic. And they’re obviously very highly committed to Nato. Had Trump won a second term, I don’t know if Nato would have survived. So, it’s a dramatic shift. But we shouldn’t romanticise it. There will be some tough choices for the United States to make. Do you think Trump being defeated will dampen the enthusiasm for sort of populist movements we’ve seen on the rise in Europe?

It won’t be the death knell of people like Orbán or Janša, or whatever. But it’s definitely not working in their favour. Then, we have the expansion of the EU to include the western Balkans, which is currently being held up. How do you see that playing out over the next year?

Geopolitics: international impact?

Dramatic shift; tough choices ahead University of Luxembourg political scientist Josip Glaurdić talks about how the election of Joe Biden, EU expansion plans and German elections will impact the political landscape in 2021.

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Duncan Roberts Mike Zenari

DUNCAN ROBERTS In January, Joe Biden will be inaugurated as the 46th president of the United States. What sort of influence do you think his administration will have on transatlantic relations?

Highly positive. Joe Biden [was] one of a generation of committed transatlanticists in the US senate. So, he recognises, and the partners that he’s chosen [secretary of state Antony Blinken and envoy for climate John Kerry] definitely recognise, the importance of transatlantic relations. Because he realises it would be far more difficult for the United States to stand up to China, to stand up to Russia without partners in the European Union. JOSIP GLAURDIĆ

I’m very pessimistic. I mean, the only way that this can possibly move forward is if there is any sort of initiative in DC to basically say “Europe, get your act together, stop the BS. If you really genuinely have a vision for this region to be fully integrated, to move beyond its terrible past and slightly less terrible present, then put your money where your mouth is.” Because the vacuum in that region has led to an influx of Chinese capital and of Russian influence that ultimately do not serve European interests and do not serve American interests. Luxembourg is hugely influenced by its bigger neighbours, and we have the German election coming up sometime in the autumn…

Where, again, a lot of things can happen. I mean, it’s still unclear who is going to be the candidates for the CDU. So, I mean, to predict anything at this point, including some miracle by which Merkel stays… What seems apparent is that there will be a need for some form of a coalition government that much we know. And if I was a betting man, at this point, I would most likely bet on a Schwarz-Grün [CDU/CSU-Greens] coalition at the end of it. But I wouldn’t bet × a lot of money.

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JANUARY 2021

Don’t worry about the government As the second DP-LSAP-Déi Gréng coalition reaches its halfway mark, it just about passed the 2020 stress test without losing sight of its manifesto pledges. WORDS

Duncan Roberts

Mixed reviews

2020 began with a cabinet reshuffle sparked by economy minister Étienne Schneider’s decision to quit government after eight years in cabinet. That meant a promotion for his LSAP colleague Franz Fayot, seen by many as being “less business friendly” than Schneider, and also fellow party representative Paulette Lenert being put in charge of the health portfolio. Nobody at the time could have foreseen the enormity of the task that would face Lenert in her first few months in the job. But she proved

Constitutional reform

more than equal to the task, taking centre stage at media briefings where she was a model of calm and level-headedness. Even when the government faced criticism for its delay in introducing wider restrictions as the number of cases, hospitalisations and fatalities from covid-19 rose rapidly in late autumn, it was prime minister Xavier Bettel (DP) who was the target rather than Lenert. His decision to raise the minimum wage by 2.8% was also decried as populist, and not economically viable, by employers representatives. Several other policy decisions, notably the spiralling costs of the LuxeoSys military satellite project, a dispute over transparency regarding the memorandum of understanding with Google, and the drawn-out saga over the Fage yoghurt factory, have proven to be embarrassing. Nevertheless, the government seems to be on track in meeting some of its manifesto promises. Henri Kox (Green party), another relatively new minister, has taken the housing crisis to heart and is in the midst of getting much needed reform through parliament (see page 50). Whether it will be enough remains to be seen. While plans to reform the constitution were mooted long before the first so-called Gambia coalition took office in 2013, proposals by the current government for a major overhaul seem likely to result in a watered-down version. Reform of the constitution requires two-thirds majority approval in parliament, and the biggest single party in the Chamber of Deputies, the opposition CSV, has already placed several stumbling blocks in its path. A major spat over the government’s refusal to meet its demands for a consultative process with citizens led to an impasse. But it is not just political differences that have caused problems. One of the main sticking points is a reform of the judiciary and the formalisation of the independence of the prosecutor’s office vis-à-vis the ministry of

Tax reform

While there was no specific mention of tax reform as such in the 2018 coalition agreement, the government finance minister Pierre Gramegna (DP, photo) has pledged to introduce a “coherent fiscal policy, responding appropriately to the modern realities and challenges of family, social, economic and ecological policy.” Indeed, the CSV has also been calling for a reform, with MP Gilles Roth saying that “the current tax model no longer corresponds to the reality of society.” And while it now looks likely that a fully fledged tax reform will not be introduced before 2023--a crucial election year in Luxembourg-changes announced by Xavier Bettel in his state of the nation speech in October of 2020 will have a more immediate impact. These include a 20% tax on direct and indirect revenue from real estate held in specialised investment funds and the abolition of the regime that allows tax breaks for high earners who have some of their income paid in stock options. On the other hand, while further taxation of high net wealth does not have unanimous backing, CSV president Frank Engel caused a stir when he suggested the idea of the reintroduction of the wealth tax and even a reform of inheritance tax. And with the economic fallout from the health crisis likely to hit state finances hard, this debate will no doubt continue into 2021.

justice. Indeed, the administrative court has said it is unhappy that the judiciary is not being explicitly presented as the third power, alongside the executive and legislative branches. Reform of the royal court presents less of a problem thanks to the implementation of recommendations in the Waringo report before the summer, which resulted in a shake-up of administrative management at the court. Each chapter of the renewed constitution will be presented to parliament as a legislative proposal so that they can be adopted one by one. But Mars Di Bartolomeo, the LSAP chairman of the committee on institutions and constitutional review, has said they could then be cleaned up to make the whole constitution consistent.

Photos ¯ Matic Zorman ¯ Romain Gamba

Politics

Chamber of Deputies

Enter stage left Nathalie Oberweis will be a fresh face in parliament in 2021. Together with Myriam Cecchetti, she will take up a seat for déi Lénk as part of a rotation plan that sees David Wagner and Marc Baum step down. WORDS

hile no exact date has been set for the handover, Nathalie Oberweis expects to be an MP by the late spring. Mother to a five-month-old, Oberweis has a history of fighting for social and environmental justice. Once an MP she will be eager to tackle a number of challenges that she believes society faces, including the fallout of coronavirus. “How are we going to finance the economic crisis left by the pandemic? I mean, the crisis was already there but has just escalated.” She points to youth unemployment, the housing crisis and in-work poverty as proof that, as she puts it, “the capitalist system is not working.” Even though radical fiscal reform seems to be off the table for now, déi Lénk is calling for a fairer tax system that will not target citizens but rather will seek out “money where it is”. That could mean more

Duncan Roberts

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Mike Zenari

tax on capital gains, company revenues, wealth tax, inheritance tax… “It’s a question of political will and courage,” she says. The housing problem, too, requires the sort of radical approach that would usually be reserved for a crisis, Oberweis reckons. This would include taxing empty residences and building land that is left idle by speculators, but also a legal obligation for communes to build housing, and that 10% of that housing must be so-called social housing. “It should be a public mission, because housing is a human right, even if it is not a legal right in Luxembourg. These solutions are not new, they are realistic and have been applied elsewhere. And if you look at how much money was suddenly available to tackle corona… then taking big measures for this crisis should also be doable.”

The pandemic also showed the need for strong state apparatus. “In Luxembourg we have been relatively protected from calls for the privatisation of the health sector,” she says. “But that ideology is still present to some extent. We need strong public services that serve the public and not profit.” Oberweis feels aggrieved by how few of the lessons that could be learned from the pandemic have been taken on board. “During the first wave of coronavirus, many people, not just from the left, said that the health crisis would serve as a lesson that the way we were living was wrong… that our political-economic system was not sustainable. But now everything is back to × running as it was before.”

Can parliament do its job? The role of the Chamber of Deputies came under scrutiny like never before this year, raising questions about transparency and how it holds government to account. Opposition parties faced a real dilemma when the government decided to introduce a state of emergency so that it could introduce legislation at speed during the first wave of the coronavirus pandemic. While they were keen to show solidarity with the measures deemed necessary to halt the spread of the virus, they were also at odds with the way in which the government was pushing through some of its agenda. But it was not just the pandemic that caused eyebrows to be raised. A refusal by the government to share documentation on the media deal it had with RTL and its memorandum of understanding with Google on its planned data center both ended up before the administrative court. The ADR thinks the government often shows a lack of respect towards parliament and opposition party members. “More and more often, we see that awkward [parliamentary] questions are not answered at all,” its faction head Fernand Kartheiser told Delano.

But the opposition is divided on a proposal, made after Xavier Bettel’s state of the nation address in 2019, that parliamentary committee meetings should be held in public. “Complete transparency can also have its drawbacks,” says Kartheiser, citing his predecessor Gast Gibéryen’s warning that it could make it more difficult to reach political consensus in committee meetings. That argument holds no sway with déi Lénk’s Marc Baum, who has said that the petitions committee’s cross-party consensus has not been hampered by public sittings, for example. The CSV’s Martine Hansen told Reporter.lu in November that her party would push for all committee meetings to be public and blamed the coalition parties for slowing down the process. Pirate party MP Sven Clement (see opposite) agrees that there are only a few exceptions, like when national security or confidential international negotiations are being discussed, to prevent such a move. D.R.

OPPOSITION VIEW

“The government regards the Chamber of Deputies merely as an ‘executive body’ for its own political will"

Fernand Kartheiser Parliamentary faction leader, ADR

DUNCAN ROBERTS Has the role of parliament been neglected by the government, especially during the health crisis? SVEN CLEMENT Yes! Government seems to consider parliament as a burden when it comes to adopting new measures, yet the opposite is true. Parliament has often safeguarded against legislative mistakes, fixed interpretation errors and made the laws better. As the directly elected representative of every citizen, it should be more respected and not only considered a rubber-stamping body to approve whatever the government proposes.

What can the opposition do to better hold the government to account? I believe we did a lot by asking more questions than ever, especially clarifying questions, and formulating requests for access to data the government didn’t want us to have or simply forgot to compile. The opposition is not only elected to be against everything, our role is to hold government to account. That’s why I really like the English term “loyal opposition”. We might not agree on everything, but it is our job as opposition politicians to be inquisitive, especially in times where government might be tempted to use extraordinary powers. This is critical to the functioning of democracy, and I would wish majority party MPs would also consider holding the government a bit more accountable. In what other ways should parliament be more transparent? We need better safeguards against lobbying and undue influence. Parliamentarians should accept to be a bit more transparent when it comes to their business dealings and parliament, as an institution, would do well in opening up the last bastions of secrecy around parliamentarian proceedings.

Photos ¯ Matic Zorman ¯ www.levygraphie.com ¯ Nader Ghavami

JANUARY 2021

PIRATE PARTY MP SVEN CLEMENT LIKES THE TERM “LOYAL OPPOSITION”

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JANUARY 2021

From the Dubai World Expo and digital trade missions to European values and the Oscars, officials are aiming to keep Luxembourg in the global spotlight

What the world will look like in 2021 is anyone’s guess, but at least let’s hope for more peace and trust.

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Natalie A. Gerhardstein

t the time of writing, German chancellor Angela Merkel announced she would be speaking with the global vaccine alliance to make sure poorer countries didn’t miss out on the vaccines being developed in wealthier countries. While there are reports US recipients could have the vaccine as early as end-2020, Duke University has estimated it could take up to four years for those same vaccines to reach poor countries. The health pandemic has highlighted not just the ways in which countries rely on each other--and can work together for a common good--but how fragile some of those interconnections can be. Take the Schengen zone, for instance: in the lead interview in this section, foreign affairs minister Jean Asselborn reflects on the vulnerability of Schengen, and the EU, stating that member states “reverted to national reflexes” as they shut down borders. Tiny Luxembourg has often punched above its weight in the European Union, of which it was a founding member, and often played the role of neutral mediator between its larger neighbours, France and Germany. But the grand duchy has never

been shy on the world stage either, be it in sustainable finance, space or diplomacy--even when it comes to vocal politicians like Asselborn. Luxembourg Chamber of Commerce president Luc Frieden said during a recent press conference that internationalisation was “twice as important” for a country like Luxembourg, given its size, and in our second interview in this section, the chamber’s international affairs director, Cindy Tereba, weighs in on how smart, early pivoting has helped the grand duchy keep its global network intact, despite cancellations or postponements of trade fairs and missions, and what services are available for local players to access foreign markets. There are exciting developments in 2021 for Luxembourg on the world stage as well, from the Expo 2020 Dubai, expected to kick off in October, to Team Lëtzebuerg athletes taking part in the Tokyo Olympics (see pages 66-67). The United Nations has designated 2021 as the year of peace and trust. The world could certainly do with large doses × of both over the next 12 months.

International

JANUARY 2021

Foreign policy

EU needs to remain steadfast Luxembourg foreign minister Jean Asselborn talks about the rule of law, EU vulnerability exposed by the pandemic and shaping future migration policy. WORDS

“W

e need a strong mechanism to protect and promote the rule of law inside the EU,” says Jean Asselborn (LSAP). He is speaking at the end of November as efforts to pass legislation that would include a conditionality regime, allowing EU funding to be withheld from member states that breach the principles of the rule of law, were faltering under veto threats from Hungary and Poland. “This is a quite regrettable development, which risks delaying the disbursement of EU funds in the current situation where the economic impact of the covid-19 crisis is being felt throughout Europe,” the minister explains. “Especially the young generation expects a clear stance from the EU on rule of law issues.” Asselborn agrees that the coronavirus pandemic also exposed the vulnerability

Natalie A. Gerhardstein & Duncan Roberts

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Mike Zenari

of the Schengen system and of the EU as a whole, as member states “reverted to national reflexes” and shut down borders. And although coordination mechanisms were quickly established, he wants guarantees that any future measures taken to counter the virus are compatible with EU law, including the fundamental right to free movement of people. “Together, all member states need to establish how best to protect our common European achievements of which Schengen is a central part.” The refugee situation is another area in which coordinated effort must prevail, Asselborn says. Even more so as some members “have simply given in to populist movements” and even breached legally binding EU instruments. “Only a handful

of member states show solidarity with countries of first entry by participating in voluntary coordinated efforts to relocate refugees.” He says that the number of asylum seeker arrivals is currently by far below the figures of 2015 and 2016. “We would only be talking about relocating a couple of thousand people.” He is calling for a “transparent, predictable and mandatory mechanism” that will guarantee fair burden sharing in case of a renewed crisis. “Squaring this circle will be a heavy task for the current [European] Council presidency, and it will keep the incoming and future presidencies even busier. Luxembourg will be a constructive partner in these efforts to achieve a fairer migration management system. I expect × others to do the same.”

Sales & Marketing 10 omnicanal strategies

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Adoptez le flou et combattez les silos, leur place est dans les exploitations agricoles. Après le Retail, de nombreux secteurs sont touchés à leur tour par la vague de l’omnicanal aussi bien en vente qu'en marketing. Ce 10×6 vous présentera 10 stratégies omnicanales innovantes répondant aux besoins des clients d’aujourd’hui pour être pertinent et remarquable là où cela compte vraiment.

Avec la participation, entre autres, de : Alicia Brun, Payconiq Barbara Daroca, ING François Hannebicque, Lonsdale Nicolas Henckes, CLC Marc Hoffmann, Cactus Herwig Temmerman, Bearing Point

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Global reach

Luxembourg on the map

JANUARY 2021

The grand duchy has always been said to punch above its weight on the international stage. Whether it be in seeking out new trade opportunities, delivering humanitarian aid and development cooperation, ensuring it has a voice in international institutions or showcasing its cultural achievements and supporting its sporting elite, Luxembourg will be represented all over the world in 2021.

TRADE TARGETS Luxembourg will continue to target trade via its established network of Luxembourg Trade and Investment Offices as well as its trade attachés at embassies in Berlin, Paris, Brussels and, as of November 2020, London. A series of webinars initiated this year by minister of the economy Franz Fayot and Chamber of Commerce president Luc Frieden will continue into 2021 and beyond. In addition, Go International country webinars aim to inform companies in Luxembourg about the current situation abroad. There are plans for an e-mission to Wisconsin, in the United States, and digital and hybrid attendance of important trade fairs including Mipim real estate market in Cannes and the Hanover Messe. A physical mission to London in the second semester of 2021, to explore new and old business relations in post-Brexit UK, is also in the pipeline. Before all that, Luxembourg will have a pop-up store featuring a handful of companies in the food and beverage sector at the Gourmet Market in Bangkok from 25 February to 10 March. ©

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Trade attachés: Berlin, Paris, Brussels, London Missions and fairs: Wisconsin, Bangkok, Cannes, Hanover

OSCARS

Duncan Roberts & Natalie A. Gerhardstein Maison Moderne / Maps4News

WORDS MAP

LTIOs: Casablanca, Tokyo, Abu Dhabi, Taipei, San Francisco, New York City, Tel Aviv, Shanghai, Seoul

No fewer than three Luxembourg production companies have films on the long lists for the Best International Feature for the 2021 Academy Awards. In addition to River Tales (Calach Films) representing the grand duchy, superb investigative documentary Collective from Samsa Film is Romania’s representative, and Filippo Meneghetti’s French drama Deux, co-produced by Tarantula, has been selected by France. The shortlist will be unveiled on 9 February and with animated feature Wolfwalkers (Mélusine) also likely to be in the running, hopes are high that at least one Luxembourg producer will be represented at the Oscars ceremony on 25 April. ©

www.oscars.org

COP26

The 26th United Nations Climate Change Conference, also known as COP26, is scheduled to be held in Glasgow, Scotland, from 1 to 12 November after it was postponed by a year. Luxembourg’s delegation will be led by environment minister Carole Dieschbourg. The summit is being called the most important international meeting on the climate emergency since the Paris agreement was signed in 2015--the United States has since withdrawn from that agreement under the auspices of president Donald Trump, but is expected to rejoin once Joe Biden takes over at the White House. And the grand duchy itself received a warning from the OECD in November this year that it must do more to actually meet ambitious goals to cut carbon emissions by 55% within the next decade. But there was also praise for some Luxembourg initiatives, and Dieschbourg is confident that the OECD report would “help us make progress on environmental policies.” ©

TOKYO 2020 So far, four athletes have qualified for Luxembourg’s team at the Tokyo Olympics--shotputter Bob Bertemes, swimmer Raphaël Stacchiotti, dressage rider Nicolas Wagner, and veteran table tennis player Ni Xia Lian. Team Lëtzebuerg also has three quota places for its road cyclists (two for the men’s and one for the women’s event). Others still hoping to qualify after a disrupted 2020 season include middle-distance runners Charles Grethen and Charline Mathias, swimmer Julien Henx, archer Pit Klein, karateka Jennifer Warling and triathlete Stefan Zachäus.

www.ukcop26.org

www.teamletzebuerg.lu

DEVELOPMENT AID

EXPO 2020

Luxembourg is one of very few countries that will continue to allocate 1% of its GNI to development cooperation, which will amount to an estimated €405 million in 2021. An estimated €56 million of this is ventilated through agencies such as the UN World Food Programme or UN High Commissioner for Refugees, and international NGOs including the International Committee of the Red Cross. The contribution to development cooperation efforts by Luxembourg NGOs will amount to an estimated €68 million. Luxembourg development agency LuxDev is charged with implementing programmes using the aid channelled to those countries with which the grand duchy has bilateral development cooperation agreements. Priority partners next year continue to be Niger, Mali, Senegal, Burkina Faso, Cape Verde, Laos and Nicaragua.

The Expo 2020 Dubai has been postponed to 1 October 2021-31 March 2022. By October 2020, the 2,770m2 Luxembourg Pavilion--with its Möbius strip structure, developed by Metaform-was 75% finished, with expectations that it should be complete by the start of 2021. With its focus on “Resourceful Luxembourg”, the €32m pavilion’s interior includes a ramp for visitors to “experience” the grand duchy through scenography, created by Jangled Nerves; a “Schengen Lounge” featuring Luxembourg wines and fare, prepared by Kim Kevin de Dood and his team; a shop and more. It is expected to attract 150,000 visitors a day, and organisers have said 70% of materials used in the construction of the pavilion will be reused or recycled after the pavilion is torn down.

www.luxdev.lu

www.luxembourgexpo2020dubai.lu

CINDY TEREBA The director of international affairs at the Luxembourg Chamber of Commerce says in the near term, the most important challenge “is to keep our network going, to allow Luxembourg companies to connect to outside markets, even if they are not able to travel.”

JANUARY 2021

Global network

A major pillar for relaunch Luxembourg Chamber of Commerce’s Cindy Tereba weighs in on how smart early moves have kept their global network intact and aided local players to access foreign markets.

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Natalie A. Gerhardstein Mike Zenari

he Luxembourg Chamber of Commerce and its partners had to quickly adapt when the pandemic hit. “We were right in April to decide we were going to switch all our services to digital,” says Cindy Tereba. “Not only right for the second semester, but it is also going to determine the programme in 2021.” The director of international affairs notes that trade fairs, for example--which require much advanced planning--were delayed into 2021. Moreover, “everything that is supposed to take place in the first semester--if it should take place in a physical way--is delayed to the second semester.”

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The focus has shifted as a result. “The priority now is to keep our relations, our network basically, [and] to care for it.” Also top priority: giving local players support through difficult times, providing them with the information and resources to allow them to develop abroad but also take advantage of possible aid in the context of the EU framework. Tereba says foreign trade is one of the major pillars for an economic relaunch. In October, chamber president Luc Frieden called internationalisation “twice as important” for a country like Luxembourg, given its size. Not to mention that the grand duchy is an export-intensive country, exporting some 80% of its goods and services. It was in October as well that the Chamber of Commerce and the economy ministry announced a digital marketing guide, available in both English and French, aimed to help local players boost their online opportunities and orient their international strategies. “Clearly, the most important for us is to keep our network going, to allow Luxembourg companies to connect to outside markets, even if they are not able to travel,” Tereba adds. “We have a whole set of services for companies to keep these services going, to seize opportunities, to get in contact with companies… all of that is in place.” Tereba says, broadly speaking, she doesn’t see a trend of companies to turn more towards local markets these days. “I think companies are still on foreign markets, and even more so at the moment because the EU markets are recovering very well. It’s picking up in the Asian markets more than in our region, so there are more opportuni× ties now in the Asian market [too].”

Women 10(0) femmes pour diriger

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Même si en théorie la diversité est reconnue comme une force pour les organisations, en pratique, les comités de direction restent encore très, trop masculins. Le magazine Paperjam présentera dans son édition de mars 2021, 100 profils de femmes qualifiées, occupant des fonctions au sein de directions d'entreprises.

Parmi lesquelles... Béatrice Belorgey, BGL BNP Luxembourg Corinne Loze, Orange Luxembourg Charlotte Pedersen, Luxaviation - Hélicoptère Pascale Toussing, Administration des contributions directes Laurence Zenner, CFL Cargo

Ce 10×6 donnera la parole à dix d’entre elles.

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JANUARY 2021

Socio-economic inequality will continue to shift in 2021, with the pandemic playing out differently for disparate types of NGOs

Society

WORDS

Jess Bauldry

uxembourg not-for-profit Caritas says if people were vulnerable before the crisis, that is unlikely to change in 2021. It also has considerable concerns about single parents, who feature heavily among the 20% most vulnerable of the population. Legislation will help. The government’s eagerly awaited income tax reform would be an opportunity to help single parents who are the biggest losers in the current system. Revenues from the carbon emissions tax that enters into force in 2021 should also bring benefits to low income families, with 50% expected to be reserved for this purpose. Caritas also moots the introduction of a wealth tax on the country’s highest earners, though finding consensus within the coalition for such a politically unpopular policy will be challenging. The 2020 Migrant Integration Policy Index found Luxembourg made great strides in integrating foreign nationals, who make up around half of the resident population and 70% of the private sector

Society

2020 exacerbated social inequalities in Luxembourg, from the economic fallout of the pandemic to the mental health strain of isolation.

workforce. But inequalities exacerbated by the pandemic could turn up the heat on the multicultural melting pot. All eyes will be on the integration reform being drafted during 2021. It is unclear what this will mean for players like the national foreigners’ council (CNE). But communes will be expected to step up in getting more diverse representation in their activities. Education, which will see a lot of changes in 2021, will also play a strong role in combating inequalities and ensuring greater integration. The planned opening of two European-accredited schools in Luxembourg City and Mersch will further ease access to English-language education. Young people unable to transition to the world of work because of the pandemic slump will be able to gain workplace skills via the Diplome+, offered as part of the new Université Populaire. Meanwhile, not-for-profits, which also themselves face funding crises, will continue to play a critical role in oiling × the social machinery.

JANUARY 2021

Environment

Plastic bubble If 2019 brought hopes of escape for Europeans drowning in plastic, the 2020 pandemic dashed them. What does 2021 hold? WORDS

he 2019 EU directive banning common single-use plastics such as cotton buds, cutlery, plates, polystyrene food containers and straws in 2021 promised to end our plastic addiction. Then came the pandemic on a tidal wave of disposable plastic. It revealed the dependency of Europe’s health and medical sector on plastic, prompting calls from pro-plastic lobbyists to push back the single-use plastic ban date. The European Commission didn’t back down. Luxembourg will implement the directive in July 2021, going even further than the text and banning all single-use plastics from festivals. Julie Brohée (pictured), a lawyer specialised in EU environmental law who, in 2019, co-founded PlasticSwitch, encouraging bars and eateries to quit plastic straws, says the sector has made massive progress. But the pandemic has

Jess Bauldry

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Mike Zenari

caused a relapse in other areas. On a recent trip to her butcher’s, Brohée said her reusable plastic container was refused on health grounds. And if further lockdowns are imposed in 2021, struggling eateries offering take-away services may well turn to cheap single-use plastic. Recycling is also not the panacea, says Brohée--recycled plastic is “twice the price of virgin plastic. Also, the problem is that it downgrades.” Luxembourg recycled 34.2% of plastics in 2018 and Brohée reckons it will struggle to hit the EU 2025 50% recycling target. It is not alone--in October, the European Court of Auditors highlighted in a report that there was a significant risk the EU would not meet its plastic recycling targets for 2025 (50%) and 2030 (55%). “To meet its new recycling targets for plastic packaging, the EU must reverse the current situation,

whereby we incinerate more than we recycle. This is a daunting challenge”, said Samo Jereb, the member of the European Court of Auditors responsible for the review. And with a historical reluctance towards consumer waste taxation in Luxembourg, there seems little incentive. New directives within the European Green Deal, such as the right to repair and a ban on the destruction of durable plastics, offer some hope in the longer term. And Luxembourg will introduce further changes. Starting in 2022, it will ban the sale of fruit and vegetables in single-use plastic containers and in 2023 no single-use bag can be handed out free of charge. So, what will change in 2021? Brohée hopes the biggest shift will be individual attitudes. “We should take advantage of the × situation to break our bad habits.”

JANUARY 2021

LEAVING NO ONE BEHIND IN THE DIGITAL TRANSFORMATION Patrick de la Hamette, president of Digital Inclusion What can we learn from the pandemic about digital inclusion? PATRICK DE LA HAMETTE Since 2016 we promote universal access to digital technologies in Luxembourg for the benefit of inclusion in society. During the pandemic it became very obvious that many households lacked computers needed for remote working and home schooling. When we launched, we mostly helped refugees, but every year there have been more people needing support. CORDULA SCHNUER

With new schools planned for Mersch and Luxembourg City, 2021 has plenty in store for international families. Luxembourg has spent the last decade rolling out new public international schools as part of its strategy to attract and retain global talent. The pandemic has given the education ministry little respite. “Demand is higher than supply for the moment, even now, when mobility is restricted because of the pandemic,” education minister Claude Meisch (DP) told Delano. The biggest announcement in 2021 will be the opening of a European-accredited school in Mersch in September 2021. Located initially in an annexe of the Lycée Classique de Diekirch, the ministry will open a primary and secondary in one-year stages. A Europeanaccredited school for the capital is also being examined. Meisch was hopeful it would open for the 2021 academic year but that will depend on whether his ministry secures space. Around 70% of Luxembourg City’s residents are non-Luxembourgers. In addition to fee-paying international schools such as the European school and International School of Luxembourg, Lycée Michel Lucius has offered a public

English-language stream since 2011. According to Meisch, there are not enough places in the capital, and a new school would serve the many international students currently travelling from the City to the European-accredited public Lycée Lënster in Junglinster. Luxembourg’s first public European-accredited school, the international school of Differdange and Esch, will open its permanent secondary facilities, adding more classes starting September 2021. The school will also add an annexe for its primary section in Mondercange in 2023, around the time it will have its first graduating class at secondary. Longer-term, by 2027-28, the ministry hopes to move LML to a new campus in Kirchberg. A major challenge has been hiring English teachers. The criteria on speaking and writing the three national languages has already been adapted to one language. Meisch reckoned recruitment was not a “big problem”. “If one day we have a problem, we will have to react and find other solutions.” J.B.

RESKILLING THE WORKFORCE

“Some jobs will disappear and new jobs will be created in new areas, but [older people] need new skills. That’s why we also need to reskill adults.

Claude Meisch The Luxembourg education minister (DP) talking about the new Université Populaire planned for Esch-Belval.

What are your plans for 2021? Demand remains high for our refurbished IT devices and our free computer classes and coaching; we continue this mission in 2021. We also want to raise awareness for circular economy concepts and urge people and companies in Luxembourg to donate their used laptops. On an international scale, we hope to inspire similar projects abroad with the help of the European Commission. And your hopes for the future? Luxembourg is a digital frontrunner. The majority of people have good digital access, but those who don’t are being increasingly left behind. In 2020 it became clear that having internet access at home has become a necessity in order to fully participate in citizenship, the labour market, education and more. Maybe it’s still utopian in 2021, but one of my hopes for the future would be that Luxembourg one day becomes the first country to offer free fixed-line internet to all of its citizens, the same way we made public transport free. ©

www.digital-inclusion.lu

Photos¯ Lala La Photo (archives) ¯ Marion Dessard (archives) ¯ Mike Zenari (archives)

International schooling

SOCIAL ALMANAC

cooped up in lockdown in conditions that aren’t always harmonious. The precarious situation of jobs in the healthcare sector came into the spotlight, but also cleaners and other jobs our society needs to function. It’s not enough to say thank you, but we need to look how the status and value of these jobs can be enhanced. The public have realised that these jobs are important, maybe politicians will follow. What difficulties do you anticipate for 2021?

Social justice

Social inequalities will grow The global coronavirus pandemic has helped spread awareness about social inequalities, says Carole Reckinger of the NGO Caritas, but action is now needed, too.

he NGO Caritas set up a helpline for people in need during the pandemic. Around three-quarters of people who sought support had never had to do so before--or at least not in the last 12 months-says social policy analyst Carole Reckinger. To what degree has the pandemic helped shed light on social issues in Luxembourg?

CORDULA SCHNUER

It is clear that the big losers of the crisis will be young people and older generations. At a very personal level, I think we have seen old people being isolated in homes, because we want to protect them from illness. Children were

CAROLE RECKINGER

WORDS PHOTO

Cordula Schnuer Mike Zenari

In 2019, 18.3% of people in Luxembourg were threatened by poverty, with the risk higher among single parents, at more than 40%. We don’t have the numbers for this year, but we can expect them to be worse, because a lot of people have lost some or all of their income. Younger people are struggling to find work and will increasingly find themselves in short-term work arrangements and fixed-term contracts. If you were vulnerable before the crisis, living on the poverty line, this will get worse. Caritas is advocating for a fairer distribution of wealth. What could this look like?

We should have a discussion to reintroduce a wealth tax, to increase taxes for high earners and provide further tax breaks for single parents. Family benefits need to be adjusted to inflation, like wages are. We need to find intelligent ways of doing this. There are scenarios where an inheritance tax wouldn’t be just, because it would once again disadvantage the socially weak. It’s not black or white. But the fact that it’s complicated cannot be an excuse not to tackle this topic. Now is the time to talk about it, even if it’s not in the coalition agreement. We cannot wait until the next elections to start developing these ideas. × ©

www.caritas.lu

Society

Every year, Caritas investigates a particular social issue in its so-called social almanac. The 2020 edition was dedicated to population ageing while the 2021 report will analyse the future of the country, what lessons can be learned from the crisis, how to reduce poverty, measure our wealth, and become more sustainable. Simply going back to the way things were before the pandemic should not be an option, the NGO says.

CHARITY FUNDRAISING

JANUARY 2021

How have donation pa terns changed? The crisis has spurred more corporate giving, not less, according to Tonika Hirdman, who expects that trend to continue in 2021. You might have thought that corporate philanthropy would have taken a hit during the covid-19 crisis, as companies tried to carefully manage their cash flows. But the opposite happened, says Tonika Hirdman, director general of the Fondation de Luxembourg, a not-for-profit which advises on charitable giving. While her outfit already worked with many wealthy individuals, in 2020, there was increased “interest from companies in contributing, and that is a bit new for us.” Particularly keen were financial firms, which have fared fairly well during the epidemic and “want to contribute” back to society. Some of that support was channelled through the Fondation de Luxembourg’s own covid-19 fund, which had raised and distributed €1.4m by mid-November, and some was granted directly. The money mostly went to social aid programmes (such as helping the homeless and isolated elderly) and non-vaccine research projects (such as

data modelling and materials analysis). In 2021, Hirdman expects “more focus on the health sector and research, and we might see more focus on the climate change and environment areas.” Existing donors have mainly maintained support levels, despite endowments taking financial hits. In many cases, donors “increased support”, with Hirdman seeing “actual distributions higher” in 2020 than in 2019. “I expect that’s a trend that will continue” in 2021. She also anticipates more family foundations will be established, as the pandemic has prompted many people to consider “their legacy” and “how they can contribute after their own lifetime.” Was the spike in corporate donations a one-off? “For some, yes. For some others, it was a start, and they saw it was working well and it was also applauded by their staff. They are seeing the crisis is continuing and that it’s the time to renew their efforts.” A.G.

What is the focus of the reform of 2008 integration law? Living together. On a communal level we need to empower communes so that integration works better in everyday life: school, work and sports clubs. Corinne Cahen* Luxembourg integration minister (DP)

At what stage is the reform? The consultation is underway and I hope starting next year we can have a debate in

parliament so that before the end of next year we will have a first draft. What studies will inform this reform? There is a study from the OECD to see where we are in an international context with integration, and another study on racism that’s underway.

*Speaking at Asti conference, 16 November

INTEGRATION LAW REFORM

The Cercle de Coopération des ONG and Clae, which represent 258 not-for-profit associations in Luxembourg, issued the stark warning in July when pandemic restrictions were just starting to impact charity finances. In Luxembourg, larger non-profits are financed with grants and subsidies up to 80% of their running costs, making up the difference through fundraising. “Various factors are at the origin of financial difficulties that may jeopardise the viability of some associations […] the decline in self-financing mainly due to the interruption of activities, but also the decline in donations, sponsorship and also the questioning of certain subsidies,” the two consortiums wrote. Some organisations, such as the Red Cross and Kriibskrank Kanner, have adapted their trading and challenge fundraising models. The Red Cross adapted its annual Christmas bazaar, which in 2018 raised €180,000, to a series of pop-up stands. The Lëtz Go Gold charity race went virtual in September, raising €305,601 for paediatric cancer research. “I think that generally those sorts of events are raising money, but not replacing the amount of money lost from people being able to do the in-person events,” Alex Blake of Keda, a UK-based charity fundraising consultancy told Delano in November. “While they’re not making huge amounts of money, the audience they reach is really significant.” As participants opt in to mailing lists, the returns on this engagement could be reaped later, he said. In the UK, from January to June 2020, charitable donations increased £800m, according to a survey by the Charities Aid Foundation, while the number of donors remained stable. There was, however, a shift in beneficiaries, with donors favouring hospices and charities supporting the national health system, to the expense of segments such as medical research which lost £174m over the same period. “We’ve seen that the general public wants to give at this time, and have done that in various ways,” said Blake. But, given the economic downturn, it is unclear for how long donations will continue at this rate. J.B.

Photos ¯ Mike Zenari ¯ Anthony Dehez (archives)

Luxembourg non-profits have warned that budget cuts for 2021 could prove fatal for the sector. But new revenue streams are emerging.

A child under the age of 15 dies every five seconds of preventable causes.*

*https://news.un.org/fr/story/2018/09/1023832

In 5 seconds, you can ensure medicines are no longer a luxury.

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JANUARY 2021

Screen time is up, which will continue to cause widespread disruption for the arts in the grand duchy in 2021

Culture

WORDS

Jess Bauldry

f, in 2020, Luxembourg’s cultural sector never returned to the heights of the pre-pandemic days, it was not for want of trying. Cultural players found innovative ways to entertain without endangering health, through drive-in concerts, hybrid film festivals and outdoor concerts, to name a few. With international tours on ice, local artists took centre stage. This local ecosystem boon was also extended to audiovisual artists whose work was streamed on demand. Yet, the pandemic put the spotlight on the precarious situation for private cultural venues and the artists who work with them. This has not escaped the attention of the culture ministry whose 2021 budget was upped. Increasing visibility of artists abroad will be a big focus in 2021. Two elements that could help will be the Luxembourg Pavilion at the Dubai Expo, that was postponed in 2020, and the Oscars. The former will be supported by a selection of cultural works from Luxembourg. In the latter, Luxembourg will be represented by Julie Schroell, whose documentary River Tales is in the

Culture

The 2020 lockdown showed us the importance of culture. 2021 will be a test of what we learned.

running for best international feature. We’ll find out if it was shortlisted on 9 February. A second win in this area, after the 2014 success of animated short Mr Hublot, would cement Luxembourg’s place in the cinema world, possibly opening doors for other projects. 2021 legislative reforms mean freelance artists, whose income is as precarious as that of seasonal workers, could see their situations stabilise. This will be important to nurture a diverse and dynamic cultural representation. While I look forward to a return to consuming culture the “old-fashioned way”, I don’t believe we’ll be sitting, sans masque, in a full theatre auditorium before the year ends. I also hope that the state will learn from the pandemic and re-examine its definition of culture to incorporate elements of entertainment. Public cultural funding expert Sylvia Amann told me mid-2020 that the pandemic made visible how crucial cultural creativity and all artistic practices are for society. “Can you imagine the situation in quarantine for a single week without hav× ing access to music, for example?”

ESCH2022

JANUARY 2021

Despite ruptures in the management of the European Capital of Culture project, including the departure this year of artistic director Christian Mosar, Sam Tanson is optimistic. “The idea behind Esch2022 is to create something sustainable for the south,” she says. “Many of the councils I have spoken to are thinking about not only what they will do in 2022, but also what will remain afterwards.”

are among the most vulnerable and they live in great uncertainty. Another priority is the protection of monuments, for which we are in the process of creating legislation… that we hope can enter into law next year. What other challenges is the culture sector facing next year? You have talked about increasing support for creation…

Culture: challenges

A dramatic situation Minister for culture Sam Tanson (Green party) is worried about artists giving up their careers if things don’t improve in 2021.

WORDS PHOTO

Duncan Roberts Mike Zenari

The Neistart Lëtzebuerg programme [to support a post-covid reboot of the economy] included increased support for the acquisition of new works. We also have support in place for residencies… and we also want to professionalise and make it easier for local councils and institutions to meet the so-called “1% project” requirement to invest in art to that amount of the budget for any public building. That will also provide more opportunities for artists. So, are you generally optimistic for the short-term future of culture in Luxembourg?

DUNCAN ROBERTS The budget for culture is being increased again in 2021. What is the strategy for next year in terms of professionalising the culture sector?

We are working very intensively on the development of Kultur:LX, the Luxembourg arts council whose origins were primarily aimed at helping artists in the export market. For a small country like Luxembourg, where potential audience is quickly reached, helping artists gain a foothold abroad is much more important than for many other countries. And we are working on reform of the “intermittents statute” [for compensation during periods of inactivity], because artists

SAM TANSON

I am worried. [2020] was extremely complicated for those working in the sector. We are lucky that those venues that are supported by the state or communes have managed to survive, and we have just announced more financial support for private venues. But it is the artists themselves that concern me most. Financial aid can only be a complement but can’t replace their income. And if the situation continues I fear a whole load of people will no longer pursue their career. And that would be dramatic, because since the first capital of culture [in 1995] many artists have managed to start careers and the whole scene became × more professional.

ZwĂ¤i In this parable of life and love, two artists combine speed, airiness, acrobatics and tricks, and amaze their audience.

Tue 22 dec 19:00

ÂŠ Anina Lehmann

theatre.esch.lu +352 2754 -5010 or --5020 reservation.theatre@villeesch.lu

JANUARY 2021

ARTISTIC OUTLOOK Exhibitions on the horizon:

urning the page Luxembourg’s rich literary landscape is little known beyond its borders. Marc Rettel is working to change that in 2021. At the start of 2020, there were 602 living authors in Luxembourg. Getting their names and works known abroad is the goal of Reading Luxembourg, a project from the Agence Luxembourgeoise d’Action Culturelle. “We will measure this through the number of translations,” says Alac’s Marc Rettel. His focus is to build on the network and contacts forged when Luxembourg returned to the world’s largest book fair in Frankfurt in 2018 and to secure rights for translations of Luxembourg works. Despite the fact that French and German are among the country’s national languages, Rettel says Luxembourg is overlooked by

publishers working in these languages. “It has nothing to do with the quality, but we need to raise more awareness.” Progress is already being made. In 2020, a dozen contracts were signed for translations of Luxembourg books, despite the pandemic disruptions to book fairs. Among them will be a German translation of Tullio Forgiarini’s “Amok”. More translations should follow in 2021 when Luxembourg will have a presence at the major book fairs Taipei International Book Exhibition, Livre Paris, Marché de la Poésie, where the country will be guest of honour, and Frankfurt. J.B.

Luxembourg’s budget for activities and institutions falling within the culture ministry’s remit is over twice that of sports (0.34%) and similar to agriculture (0.82%).

Total budget Proportion of overall budget

200

180

0.8 %

160

0.6 %

140

0.4 %

120

0.2 %

100

0% 2017

2018

2019

2020

2021

Source ¯ Luxembourg government, budget.public.lu

in million euros

www.mudam.com

Conspiracy theories In an age of misinformation, fake news and opinion presented as fact, the Lëtzebuerg City Museum will be tackling conspiracy theories with a new exhibition from 26 March 2021 until 16 January 2022. The exhibit aims to show the origins of conspiracy theories, how they spread, how they function and achieve their aim of manipulating the public. Some 250 objects will serve to highlight around 700 years of conspiracy theories, which existed long before the internet. ©

LUXEMBOURG CULTURE BUDGET

2016

Contemporary art Mudam will host a large exhibition of William Kentridge’s work. The South African artist will take centre stage from 13 February to 6 June 2021 with new video works, a sound installation and a multichannel projection surrounded by works on paper, drawings and sculptures. Kentridge (*1955) addresses themes of history, memory and forgetfulness in his œuvre. The exhibition will also feature performances and an accompanying book as part of an interdisciplinary collaboration with the Philharmonie and the Grand Théâtre.

www.citymuseum.lu

From Luxembourg to Iran Two highlights on the 2021 agenda of the Musée National d’Histoire et d’Art include a retrospective of Luxembourg artist Robert Brandy’s work, as well as an exhibition by Austrian photographer Alfred Seiland. His collection “Between the Times” depicts present-day Iran between tradition and modernity. Brandy (*1946), on the other hand, is one of the grand duchy’s most prolific post-war painters, with exhibitions of abstract works across Europe, Canada, Russia and the US to his name. C.S. © www.mnha.lu

Photos ¯ Reading Luxembourg ¯ Alfred Seiland

Society

Film

Ripples of revolt Luxembourg’s 2021 Oscar nomination is a multilayered story that has yet to be shown in the country in which it was shot. WORDS

n the surface, River Tales, Julie Schroell’s gentle and poetic snapshot of life in a Nicaraguan town on the San Juan river is an antidote for our stationary times. The documentary follows theatre teacher Yemn and local children in El Castillo as they tell the river’s history in a play. Through the unfolding story of five centuries of colonisation, from the Spanish conquistadors to what at the time was the 73rd bid for an international oceanic canal through the area, Yemn encourages the children to think of their own stakes. Such reflection is a powerful tool in a country where censorship is widespread. “That was a big obstacle,” Schroell says. “The first time I was there, I could still travel along this future canal route and talk to people. A few months later, the authorities arrested people for reporting on this topic.” Schroell, who spent five years on the project, found a workaround, collaborating with a local firm and hiring cameraman Frank Pineda, a hero from the Nicaraguan revolution. The film itself is not

Jess Bauldry

openly critical. “I adapted it into something more subtextual and poetic. Even if it’s not openly critical, you can read between the lines.” The end credits lay out the situation more starkly--in 2018, Yemn fled to Costa Rica after participating in a civil movement against President Ortega. “That’s why the film hasn’t yet been shown in Nicaragua. We don’t want to endanger these families,” the Luxembourger says. “These people are already poor and vulnerable. It’s a pity, these kids should see how great they are.” Some cast members, like Christa, who plays the river, have flourished since the film was shot; others have been hard hit by the pandemic. The 2021 presidential elections add further to the community’s uncertainty as does the perennial shadow of the canal developers who, despite the canal being mothballed, may have other plans for the region. “Even if it’s not built, it’s a big problem,” says Schroell. The Oscar nomination is not the only big news for 2021. Schroell is negotiating

for the video-on-demand rights to stream the documentary in France. An episode she has made for TV series Some of Us, about discrimination in elite sports, will × be released the same year.

9 Feb 2021

The date when the shortlists for the 93rd Academy Awards will be announced.

ON STAGE Theatres in Luxembourg have programmed some fascinating English-language shows for 2021. 1

JANUARY 2021

Stark bollock naked Larisa Faber’s provocative and moving monologue gets a fresh and intriguing makeover as a live show with body mapping. The actress and writer is joined on stage by musician Catherine Konz playing some unique instruments. The text is a tragi-comedy about perceptions of the female body and the ticking of the so-called biological clock, and society’s expectations of women. Neimënster, Luxembourg-Grund 7, 8, 10, 11 and 13 March ©

Streaming Luxembourg Video streaming platforms like Netflix, Amazon Prime Video and, most recently, Disney+ have done more than just keep households occupied during testing times.

Enter Achilles DV8’s Lloyd Newson developed this raucous, testosteronefuelled piece of physical theatre in 1995. It remains recognisable as an examination of lad culture and, in these times of social distancing, its art may seem even more heightened and pertinent. Reworked and performed for the stage by Ballet Rambert and Sadler’s Wells. Grand Théâtre, Luxembourg-Limpertsberg 1-2 April ©

lockdown, and after Sawah had a cinema run. So, why don’t more local filmmakers take the streaming route? “They like to see their films in cinemas, that’s true for every filmmaker,” El Assal suggests. Luxembourg TV series producers have already jumped on the bandwagon with some success. Netflix launched the second season of Iris Productions’ gripping thriller Bad Banks in November 2020. Streaming platforms have an interest to accept more local content--the EU’s Audiovisual Media Services Directive requests that at least 30% of content streamed in Europe is composed of European works. Financial help for filmmakers could follow. In late 2020, prominent filmmakers such as Pedro Almodóvar were calling for streaming platforms to invest 25% of European turnover in local production companies. J.B.

GIVING A LISTEN

Sarah Bergdoll Fondation EME

JESS BAULDRY How did the Fondation EME help vulnerable people access culture in 2020? SARAH BERGDOLL We did 440 events this year. We coordinated 75 virtual concerts and 13 djembe workshops by Luxembourgish professional musicians at every care institution (for people who are elderly, infirm, differently abled and socially disadvantaged) and broadcasted on Apart TV to reach vulnerable people at home. From the

“deconfinement” onwards, 120 live concerts took place outdoors [of the institutions]. From September 2020, we adapted all our activities so that 10 projects and 80 concerts took place until the end of the year. What is planned for 2021? More than 550 events! We have been very creative during these difficult times and many projects are planned for 2021. ©

www.fondation-eme.lu

www.theatres.lu

The Hothouse Harold Pinter’s blackly comic portrait of corruption and power in an authoritarian state prison is staged by Luxembourg director Anne Simon. This immersive, walk-through interpretation of Pinter’s play promises to plunge the audience into the heart of the hothouse. This tale of surveillance, challenges to privacy and control has never been so relevant. Location TBC 30, 31 March, 1, 2, 20, 24 and 25 April ©

www.theatres.lu

Midsummer If there were a genre called ‘plays for tough times’, David Greig’s Midsummer would be there. First staged in 2008, it offered a welcome escape from the drama of the financial crash. Director Anne Simon and her cast of Larisa Faber and Daron Yates will test its enduring power against the backdrop of the coronavirus pandemic. Théâtre National de Luxembourg, Luxembourg-Merl 4, 6, 8 and 11 June ©

www.tnl.lu

Photos¯ Shutterstock ¯ Mike Zenari

Expansion into lucrative Luxembourg is also bringing wins for the local film industry. Sawah, the first fully Luxembourg-made film to be featured on an international streaming platform went live on Netflix at the end of spring. “It was at number 1 or 2 in 30 countries during the first week,” director Ady El Assal said. And it opened doors for him with Netflix. “Right now, I’m shooting a series for them in Belgium. I’m so happy. After all those years of struggling, now I can choose the projects I want.” El Assal is accustomed to going out on a limb. He broke with tradition when, in 2012, he released his first feature, Les Gars, in France via video on demand. “I wanted people to see my film and it was very successful. I made some money but didn’t break even,” he said. After four years of trying with Netflix, El Assal landed a pitch at the Berlin film festival in February, shortly before

www.neimenster.lu

CELEBRATING THE LINKS BETWEEN LUXEMBOURG AND THE UNITED KINGDOM The book #LuxUKLinks written by the British Ambassador to Luxembourg John Marshall contains 150 links between his country and Luxembourg through the chapters Art & Culture, World War I, World War II, Sport and Royal Families.

G et t h e b o in Ernste ok bookshopr s eshop.m

a nd on

aisonmo

derne.lu

JANUARY 2021

We will spend more of our leisure time on more local and more conscientious selections in 2021

Trendy cafés, quirky shops and original culinary concepts--tiny Luxembourg has made big steps towards becoming a hub for all things food, fashion and travelling in the Greater Region, but what else is on the horizon for the grand duchy in this regard?

WORDS

Lynn Feith

torefronts shut, restaurants empty, the otherwise buzzing Grand-Rue eerily quiet. If you wouldn’t know any better, you would think it was the opening scene of a dystopian movie. However, it is a sight that, in 2020, amidst a global health crisis and forced lockdowns, has become all too familiar. The pace of daily life turned down from full speed to forced slowdown through social distancing measures, home office and the inevitable behavioural shifts that came with it. It is in human nature to adapt to change and so we have adapted to this new way of living, the new normal. From the ways we interact, to the products we consume and the activities we plan. It has been and still is a time of change. But it is also a time of uncertainty, of anxiety and distress. What is going to happen next? How are we going to come out of this crisis? What will change? Questions that, heading into the new year faced with a global pandemic, are keeping many of us on the edge of our seats. So, what will the upcoming year hold for hospitality, fashion and the like in

Luxembourg? Some, such as technology startup Food4All or Akabo shop owner Karel Lambert, see the drastic lifestyle changes that were forced on us as an opportunity that has initiated a rethinking towards a more mindful way of living. Others, including François Koepp, general secretary of the hospitality federation Horesca, are still licking the wounds left behind by lockdown and forced business closures, looking with worry at the year ahead. And undoubtedly 2021 will be a challenge as uncertainty is set to follow us into the new year. However, so are creativity, innovation and solidarity--three concepts that have enabled Luxembourg’s lifestyle industry to face adversity and find hope in the toughest of times. So, 2021 will also be a year of rebuilding, of picking up the pieces and creating a new mosaic, whether that be through sustainable solutions, solidarity towards local businesses or new business models in the hospitality sector. Because, eventually, when one door closes, another one × opens, right?

Lifestyle

UNEVEN 2020 Business travel decreased up to 80% since the beginning of the crisis, however establishments serving local tourists were able to somewhat recover revenue over the summer months, in large part due to the €50 vouchers distributed by the government.

JANUARY 2021

would be that city hotels will have an occupancy of around 30% over January, February, March and I think pretty much the same will be true for hotels in rural areas. But we will need help if we want to continue without redundancies. The last thing we want to do is have to lay off people. We really want to maintain a social Luxembourg. However, looking beyond these three months, in April and the spring/summer season when terraces will be able to reopen, I believe that that will help to improve the situation. But we will most certainly need to wait until 2023 to reach a full recovery of the sector.

Hospitality sector

Rough road ahead After a year like no other for the hospitality sector, secretary general of the Horesca federation, François Koepp, looks at 2021 with mixed emotions.

WORDS PHOTO

Lynn Feith Mike Zenari

rançois Koepp of the hospitality sector federation Horesca estimates that it will take the sector years to fully recover from the crisis.

Looking ahead to 2021, what are your expectations for Luxembourg’s hospitality sector?

With all of the challenges faced recently and those still to come in the months ahead, do you also see opportunities for the sector next year?

One thing that came out of this year and that I think will be of crucial importance in the upcoming year is the “Safe to serve” label that we introduced as a guarantor for quality and safety. This is going to be key in the months to come because there are people out there that are genuinely scared and this fear will extend into the upcoming year. So the label will help businesses to adopt the right hygiene measures and hopefully give customers a feeling of safety, making them more likely to go to eat out again.

LYNN FEITH

I would say the beginning of 2021, say the first three months, we will not see any improvement compared to the current year. Not much will change, the situation will continue to stay critical. We will have to analyse the situation in detail, evaluate it and then take decisions. Talking about hotels in particular, my forecast FRANÇOIS KOEPP

So what’s the verdict?

2021 will look better than 2020 for the hospitality sector. Obviously this will, to a certain extent, be dependent on the health situation, but in general I am quite sure that it will be a better year for the Horesca. We need to reinstate trust and then things will start to look better, even if it is quite obvious that in 2021 we will not be able to achieve results anywhere close to 2019. ×

What’s on the menu? WORDS

Lynn Feith

The new vegan norm

Pit Weber, on a quest to introduce vegan cuisine to the mainstream, wanted to add to his two existing vegan restaurants by creating a more laid-back concept that would focus on plant-based snacks and drinks rather than full meals. He and his team took a risk and

Photos ¯ Mike Zenari ¯ Mazelier Group ¯ Jan Hanrion (archives)

Less waste, more taste

Food4All, a startup founded in 2018, has made it a mission to decrease food waste at a supermarket level and educate consumers about sustainable food habits through an application that enables participating supermarkets to display their close-to-expiry products at a discounted price. And the message is starting to be heard, according to Food4All’s operations manager, Gaspar Kocsis, who has seen an increased awareness towards conscious food choices in the past months. “I really hope that we understand how important food is and that we don’t take it for granted. This is going to be a mindset that will follow us in 2021, it is going to be a lesson we have learned in these challenging times. No one would have thought that

opened a new vegan coffee place, Seed, amid the pandemic. A bold step during a crisis that has forced many businesses to their knees, particularly considering that the concept of vegan alternatives is still somewhat obscure to the wider public. But Pit is driven by his passion for plant-based nutrition and sees big things on the horizon for veganism in the upcoming months. “We won’t just see a growing demand in specific vegan restaurants, but it is becoming a thing in the entire [hospitality] sector. And I think we can’t just talk about veganism and vegan cuisine as a trend anymore. By now we are talking much more about a lifestyle, and you can see it in all levels of society, it’s not about one specific group of people anymore. And I think, as a society, that helps us to become much more receptive.” Since opening his first restaurant Beet back in 2015, the clientele has shifted, he says, becoming much more heterogenous as more and more people, whether vegan, vegetarian or omnivore, want to branch out. “The future for vegan cuisine is really about integrating it into the norm and away from being something so different”, which is why Pit is using the new year to continue experimenting with new products and dishes, hoping to, in the near future, further expand his vegan business to different parts of the country.

supermarket employees would be considered essential workers, but they are,” he points out. At the same time, the unstable economic and financial situation that many currently find themselves in gives Gaspar the impression that their business model will see growing importance in the coming year, as many have to rely on discounted products to afford their weekly food shop. Therefore, the company sees big opportunities for growth, which is why it plans to educate consumers more extensively and hopefully collaborate with supermarkets on an international scale in 2021. “We hope that we can be a part of change and that we can play a role in changing people’s mindsets and raise awareness for how consumers can contribute to the decrease of food waste in the future.”

Lifestyle

From plant-based creations, to lobster takeaway and sustainable food shops, the possibilities are endless for the food trends taking over in 2021.

Lobster on the go

It was a community of fishermen in Brittany that gave Richard Mazelier the inspiration for a new-undoubtedly unique--concept in Luxembourg, combining urban street food with high quality lobster dishes. Thus was born Le Homard Bleu, a food truck as well as a takeaway service located inside Strogoff restaurant. Serving everything from lobster burgers to baos, wraps and other classics, co-founder Richard believes that the potential for takeaway solutions will be particularly significant in the upcoming year, “with regards to the current health crisis, many businesses had to adapt by offering takeaway. I imagine that this will generate new ideas and concepts in the coming months!” And indeed, Le Homard Bleu’s concept, because of its innovative take on street food, has garnered a solid fanbase. “Eating lobster, often considered to be a luxurious product, in an urban form attracts interest, and the modern offbeat spirit of our concept seems to please,” so much so that Richard and his team have big plans for their recently founded lobster business. With a new venue in the works on the place Guillaume II, in the very heart of Luxembourg City, they want to further expand the lobster cuisine and target a wider audience with their fancy street food.

JANUARY 2021

Consumer habits

Progress over perfection Co-founder of a New York-based marketing company focusing on sustainable solutions, Liz Breuer hopes for a future where conscious choices become the baseline. WORDS

or Liz Breuer, a 24-year-old Luxembourg-born marketer, 2021 will be equally as crucial as the previous year for sustainability. “First of all, we have to shift the narrative of [sustainability] being just this very one-sided thing that is specific to the way we treat the planet and we have to take on a much more holistic approach in the sense of how we treat each other,” she states. However, the young entrepreneur notes that the forced slowdown of society as a whole and the resulting drastic lifestyle changes have started to shift the mindsets with which people are approaching sustainability. “What the pandemic has really done is put a pause on all of us, giving us the time and space to think about what we’ve done in the past and whether or not that behaviour is sustainable for the rest of

Lynn Feith

our lives without repercussions. And usually the answer is no… so I think it will be a lot about the individual shifts we will see that will then translate into us being more cautious and looking at things like the climate action more carefully.” What months of anxiety and distress concerning a global pandemic have really initiated is introspection and a more conscious look at our mental and physical health, Liz says, initiating a move towards the more educated consumer. “We’ve become more aware of it, so maybe in the coming year we will be more inclined to make change and to ask for change.” Alongside these individual changes, the social media influencer, on a larger scale, sees a lot of innovation happening in 2021. Companies will increasingly create new sustainable materials and ways to move

beyond the traditional “Reduce, reuse, recycle” mentality and towards regeneration and circularity, constantly giving new life to things we already have in order to ulti× mately eliminate waste altogether.

€1.5

billion

In 2020, Luxembourg issued Europe’s first sustainable government bond, allocating the proceeds to green/social projects in the coming 2 years.

Is local the new global?

A step in the right direction 2

Photos ¯ ORT Mullerthal ¯ Mike Zenari ¯ Shutterstock

Although it has been a challenging time for retailers and particularly for small local businesses, Karel Lambert, owner of the fair fashion store Akabo Buttek, is looking at the year ahead with plenty of enthusiasm. In the past months, he has been sensing a rethinking of customers towards more conscious choices, something that Lambert says has become particularly apparent throughout lockdown when solidarity for local businesses

Booze news

and products came in big waves from existing and new customers. “And even if it is just one percent of the population, it’s already something, because even the smallest step is a step in the right direction, so I see a clear tendency in 2021 that more and more people will start supporting and respecting local businesses.” However, contrary to many others in the retail industry, the Akabo boss does not see this growth taking place online. Whereas, due to lockdown, the shop was forced to temporarily move online earlier this year, he does not believe that online shopping will become a driving force for small local businesses like his own. “After lockdown the demand in our webshop has gone down to almost zero,” Karel notes. He does not see this changing anytime soon. Especially after being confined to their homes for months at a time, customers will be seeking interaction in the store and this is precisely where Lambert sees the competitive advantage of local businesses in the future. Because he reckons the personal connection established with customers in his little shop on rue de Bonnevoie is something that is impossible to find in a big high street store. L.F.

Market watchers have been predicting for years that youngsters were shying away from alcohol at significant rates. Yet, according to a forecast from market research gurus Wise Guy Reports, the worldwide alcoholic beverage market is expected to continue growing at compound annual growth of over 4% over the next six years. But that didn’t stop the Brasserie Nationale brewery, more famous for its Bofferding and Battin brand beers, expanding its non-alcoholic range by launching a new mineral water on to the market in March 2020. Lodyss was marketed as coming from the “ice age”. Brand recognition via the brewery’s tied outlets will certainly not be a problem. And as we have seen, cider maker Ramborn has also branched out into the non-alcoholic market with a range of fruit juices and an apple soda (see page 15 of this edition).

Lifestyle

Months of travel restrictions and border closures have undeniably cast a spotlight on local products, shops and places. But what will 2021 have in store?

Staycations on the rise 1

Temporarily confined to the borders of their own country, Luxembourg residents have discovered a growing curiosity for the grand duchy and its various tourist attractions. The Mullerthal Region, AKA Luxembourg’s Little Switzerland, saw popularity rise significantly in 2020. Its hiking trails counted an additional 10,000 visitors in July compared to the same period in 2019, ORT Mullerthal’s Marianne Origer notes. And even if local tourism does not experience the same popularity in 2021, awareness of the many beautiful places across Luxembourg will definitely spur more people to opt for staycations in the future. “People are starting to discover their own country a lot more and they are becoming much more interested in the various regional products different parts of the country specialise in,” the tourist office says. In particular, appreciation for Luxembourg’s natural landscapes as a source of mental regeneration has grown significantly and will continue to do so, Origer states with enthusiasm. “Nature has always and will always be one of our country’s strengths and I think that will be an important aspect in the upcoming year, this idea of local recreation which people will start to take advantage of more and more.” L.F.

Meanwhile, Fox, which had launched its low-carb, calorie-reduced beer in 2016, followed it with a sparkling wine in 2019. Its drinks are also vegan, right down to the labelling, which has allowed the firm’s founders to toast continued success. But thirst for more traditional beers also shows no sign of slowing down. Tom Hickey, who knows his market in his role as senior partner (alongside brother Ray and associate Gabriel Boisante) in popular gastro-bars Urban, Bazaar and Paname, launched his own locally produced craft beer in the summer. Without much fanfare, Twisted Cat’s unfiltered pale ale proved a hit in the outlets that serve it, and has even been stocked in cans by selected Delhaize supermarkets. D.R. ©

www.lodyss.lu

www.foxdrinks.lu

www.thetwistedcat.com

110 92

Did you know? Useful and random information about Luxembourg

EXPAT GUIDE JANUARY 20212020-21

The name Luxembourg stems from “Lucilinburhuc”, Old High German for “little fortress”.

Ella Gibson broke the women’s record for most points scored in 18m indoor 60-arrow compound archery (596 out of 600 points) during a tournament in Strassen on 22 November 2019. Janine Meissner tied it the next day. Then Sarah Prieels scored 597 points in Italy on 14 December 2019. Source: Guinness World Records & Worldarchery.org

Source: Encyclopædia Britannica

Karl Marx, born in nearby Trier, started developing his socioeconomic theories after witnessing abject poverty among winegrowers in Luxembourg’s Moselle valley. Source: South China Morning Post

The grand duke’s “official” birthday, 23 June, is Luxembourg’s national day. But Grand Duke Henri was actually born on 16 April.

626,000 on 1 January 2020.

Source: Information and Press Service

Source: Statec

“Wing Commander”

Luxembourg had the 8th fastest

(1999), the first movie

internet connections (although

based on a PC video game,

it was nearly half as slow as

was filmed in Luxembourg.

Singapore, the world leader).

Sources: Guinness Book of

Source: Guinness Book

World Records; IMDB.com

of World Records

The grand duchy’s population more than doubled since the end of the Second World War, from 291,000 in 1947 to

The world’s first fully functioning lead-acid battery was developed in Luxembourg, in 1886, by Henri Tudor. He died in 1928, of lead poisoning. Source: Tudor Museum

111 93

Luxembourg politics in numbers

MPS SITTING IN PARLIAMENT They are elected by open-list proportional representation, allowing voters to select individual candidates from different parties or to vote for all the candidates from a particular party.

There are about 50 castles in the grand duchy. Source: Luxembourg for Tourism

The next parliamentary elections are scheduled for October 2023.

VOTING CONSTITUENCIES At national parliament elections, each constituency elects a number of representatives to the Chamber of Deputies, proportionate to its population. The North gets 9 deputies, the East 7, the Centre 21 and the South 23 MPs.

Luxembourg’s flag

The Hungarian composer

is nearly identical to

and pianist Franz Liszt gave

that of the Netherlands:

his last ever piano recital at

both have red, white

the Casino Bourgeois (now

and blue horizontal

the Casino Luxembourg

Every five years, the grand duchy votes

stripes, but Luxembourg

contemporary art museum)

Non-Luxembourgers who are EU nationals

uses sky blue and the

in Luxembourg City on 19 July

Dutch ultramarine blue.

1886; he died 12 days later.

Source: Information

Source: Information and Press

and Press Service

Service; Lisztsoc.org.uk

6 MEPS REPRESENTING LUXEMBOURG in the European Parliament elections. registered on the electoral role can also vote. The next EP elections will take place in June 2024.

102 LOCAL MUNICIPALITIES

Luxembourg is the only country outside of France allowed to call its sparkling wine “crémant”. Source: Domaines Vinsmoselle

Local elections are held every six years. Non-Luxembourgers, including EU and third-country nationals, can vote if they have lived in Luxembourg for longer than five years. The next local elections are set for June 2023.

CABINET MINISTERS Many ministers in the current coalition government (as of Dec. 2020) have multiple portfolios. Just five are women. The government is headed by prime minister Xavier Bettel of the Democratic Party, with Dan Kersch of the Luxembourg Socialist Workers’ Party and François Bausch of the Green party serving as joint deputy prime ministers.

Facts and figures Figures

The crucial three... Delano distinctions

2020

JANUARY 2021

POLITICIANS OF THE YEAR

BUSINESS PERSONALITIES ¯ Entrepreneur Giovanni Patri founded Rescue Independents & Startups and was a leader in lobbying the government for better support for the self-employed and small business owners, who were among the hardest hit by the first lockdown. From this initiative sprang the AlliancUp association, the purpose of which is to represent members who exercise an independent activity. ¯ Nicolas Mackel, the head of Luxembourg for Finance, continued to promote the grand duchy around the world and was always keen to talk about the impact of Brexit on the financial sector. He also launched a neat series of “Shaping Finance” podcasts in which he discussed hot topics with high-level leaders in the European and global financial services industry. ¯ Fedil boss Michèle Detaille (photo above) was vocal in expressing her disappointment at the failure of the Fage yoghurt factory project. She said it was time that policy makers and lobbyists recognised that manufacturers play an important role in the country’s economy.

¯ Paulette Lenert (photo below), fresh to the job as minister for health, was thrust into the spotlight as the coronavirus pandemic took hold. She proved to be a calm and consistent voice at media briefings in the spring, though the feeling was that the government was overwhelmed during the autumn. She topped a November poll of the most popular politicians. ¯ CSV president Frank Engel has sparked a crucial debate when he suggested--contrary to his party’s 2018 election manifesto-the reintroduction of the wealth tax, the creation of a financial transaction tax and even a reform of inheritance tax. ¯ Foreign minister Jean Asselborn continued his no-nonsense approach to diplomacy, calling for the retention of open borders between Schengen countries during the pandemic and vociferously denigrating the leaders of EU member states who failed to welcome refugees, breached the rule of law or encouraged discrimination.

ensure customers were safe and, just as importantly, felt safe when they did their shopping. At a time when many of us enjoyed the security of being able to work from home, supermarket staff often travelled across borders to make sure we could still buy food and other essentials.

EXPATS OF THE YEAR ¯ Fiona Godfrey (photo), as co-chair of British in Europe, continued her sterling work of informing and updating British residents of their rights via British Immigrants Living in Luxembourg.

¯ Refuse collectors were given no respite during lockdown and continued to collect trash from private homes and apartment buildings at a time when we were still worried about contracting coronavirus through surfaces.

¯ Mark Kitchell launched the Luxembourg Expats Covid Community Facebook group to assist those who might need help and support during the pandemic. Unfortunately, the group too often descended into bitter fighting and personal insults. ¯ Lisa McLean was paramount in lobbying the government to provide financial support for community broadcaster Ara Radio.

LOCKDOWN ENTERTAINMENT ¯ The Crazy Quarantine Sessions team of Pol Belardi (pictured), Jérôme Klein, Pit Dahm, Charles Stoltz and Niels Engel gave local artists a performance platform and provided local audiences with some cheer during the first few months of lockdown.

UNSUNG LOCKDOWN HEROES ¯ Frontline health professionals in Luxembourg’s hospitals, private practices and temporary advanced care centres (photo at Rockhal) put their own health on the line as they worked tirelessly to diagnose, treat and look after patients infected with covid-19 throughout the year. ¯ Supermarket workers often went beyond the call of duty in those first few months of lockdown to

¯ Serge Tonnar and Maskenada managed to get artists, from classical pianist Jean Muller to actor Steve Karier, to perform Live aus der Stuff (live from the living room). ¯ 100,7 radio’s Schlofzëmmerbléck (bedroom eyes) sessions allowed local musicians to write and produce a song during the first confinement that was later released as a rather splendid compilation CD. It was supported by L'Agence luxembourgeoise d'action culturelle and copyright agency Sacem.

Photos ¯ Andrés Lejona ¯ Nader Ghavami ¯ Julien Warnand ¯ Jan Hanrion ¯ V Fischbach ¯ Mike Zenari ¯ Alexander Nanau Production/samsa film ¯ Crazy Quarantine Sessions screengrab ¯ Matic Zorman

RESTAURANTS OF THE YEAR They may have been closed for half of the year, but let’s not forget that the grand duchy has some truly memorable places to eat. Here’s the three that Delano’s reviewers enjoyed most.

FILMS OF THE YEAR ¯ Collective, co-produced with Samsa Film, is a powerful, harrowing documentary about corruption in Romania that plays out like the very best investigative journalism thriller. ¯ Massoud Bakhshi’s Yalda, produced by Amour Fou Luxembourg, is a powerful examination on the theme of forgiveness, Iran’s patriarchal society and the disproportionate influence of reality TV on society and sense of justice. ¯ With Wolfwalkers Luxemburg animation company Mélusine Productions has scored another hit with Irish director Tomm Moore. A beautiful and unique telling of a myth set in 1650s Ireland against the backdrop of English occupation.

¯ Jess Bauldry loved the subtle flavours, personal service, vibrant colours and complementary wines on offer at De Pefferkär in Huncherange.

SPORTS PERSONALITIES ¯ Dylan Pereira (photo below) steered his Porsche GT3 to victory in two races during the Porsche Supercup, finishing second in the drivers’ championship and helping BWT Lechner Racing to the team championship title. ¯ 23-year-old footballer Danel Sinani secured a deal to join Norwich City in the English Championship (though he was loaned out to Belgian side Waasland-Beveren) and scored three goals for his country in the Uefa Nations League. ¯ Ralph ‘Dizzy’ Diseviscourt beat the world 24-hour cycling distance record in July by pedalling a total of 915.39 kilometres around a 4.34km circuit at the upper reservoir of the Vianden hydroelectric power plant.

2020 review

¯ Pascal Schumacher’s Sol, the acclaimed vibraphonist’s first truly solo outing, was finally released in June. Using his preferred instrument, some effects and occasional synthesiser, Schumacher has made a record that provides aural balm in these trying times.

APPS OF THE YEAR ¯ No Big Deal rewards users with discounts at shops and restaurants for achieving specific walking targets. Some 30 companies in Luxembourg have signed up, including City Concorde and the Manso restaurant chain. It is being run by four locally based entrepreneurs, including Swedish resident Daniel Klemetz.

¯ It turned out Natalie Gerhardstein was a big fan of the generous portions, efficient and friendly service and warmly spiced comfort food available at Bazaar (photo below) on place Guillaume II in the capital city. © www.bazaar.lu

¯ And Duncan Roberts eagerly dived into the new menu of beautifully balanced tapas-style sharing dishes at boutique bar Bellamy on rue de la Boucherie in the old town. bellamylux

¯ Swiftr arrived in Luxembourg thanks to Czech entrepreneur Denisa Šustalová (photo above). The app, first launched in Sweden, allows members access to around 40 different fitness studios, yoga classes, martial arts training courses and more across the grand duchy. ¯ Cityapp – VDL, the City of Luxembourg’s new mobile tool, includes up to the minute information on public transport, car park and Vel’OH! bike hire availability, arts and culture, sports, and even real-time air quality data.

MUSIC RELEASES OF THE YEAR ¯ Power-pop combo Francis of Delirium made a splash with their All Change EP, which showcased the incisive, melodic songwriting of Jana Bahrich (photo above). Combined with powerful live shows, the band garnered critical acclaim at home and abroad. ¯ Daniel Balthasar’s The Long Lost Art of Getting Lost was recorded inside a huge cardboard box in his home studio during the first few weeks of quarantine. The result is a delicate yet artfully arranged album about the yearning, boredom and melancholia he felt during confinement.

THOSE WE HAVE LOST IN 2020 ¯ Luxembourg MP Eugène Berger died aged 59 in January. ¯ Ara City Radio news reader and announcer Mark Weedon lost his battle with leukaemia in March. ¯ Former Luxembourg university professor Michel Parisse succumbed to covid-19 at the age of 83 in April. ¯ Multimedia experimental artist Steve Kaspar died suddenly at the age of 68 in October. ¯ Camille Studer, co-founder of La Provençale, died at the age of 85 in November.

†

Index

JANUARY 2021

Academy Awards 66, 83 Ferdy Adam 20 ADR 60 Agence Luxembourgeoise d’Action Culturelle 82 Akabobuttek 91 Aleba 24 ArcelorMittal 16 Arendt & Medernach 28 Jean Asselborn 64, 94 Avere 51

B B Corporation Stéphane Badey Jana Bahrich Sasha Baillie Daniel Balthasar Marc Baum Bazaar Bellamy Sarah Bergdoll Eugène Berger Bob Bertemes Larissa Best Xavier Bettel Joe Biden Alex Blake Justine Blau Georges Bock Taina Bofferding Brasserie Nationale Liz Breuer Julie Brohée

15 28 94 41 94 59, 60 94 94 84 94 66 14 58, 60 66 76 50 33 50 91 90 72

Laurent Decker Kim Kevin de Dood Patrick de la Hamette De Pefferkär Michèle Detaille Guillaume de Vergnies Mars di Bartolomeo Carole Dieschbourg Digital Inclusion Ralph Diseviscourt Caner Dolas Duke University

H 16 66 74 94 94 40 58 66 74 94 16 10

22 10 24 94 14 80 24 66

F Franz Fayot 58, 66 Federation of Young Business Leaders 16 Fondation EME 84 Fondation du Luxembourg 76 Fonds Kirchberg 52 Food4All 89 Luc Frieden 66, 68

G C Corinne Cahen 76 Calach Films 66, 94 Jean-Michel Campanella 50 Caritas 75 CBRE 48 Myriam Cecchetti 59 Cemeteries Department, City of Luxembourg 46 Cercle de Coopération des ONG 76 City of Luxembourg 94 CGDIS 46 Chambre des Métiers 47 Sven Clement 60 Comité de Liaison des Associations d’Étrangers 76 Creditreform 22 CSV 60

Gamma Technologies Josip Glaurdić Fiona Godfrey Governance.io Pierre Gramegna Charles Grethen

16 56 94 33 58 66

33 60 15 66 91 76 89 88 12

J Jangled Nerves Jayan Jevanesan Steve Jobs

E Herbert Eberhard The Economist Ady El Assal Frank Engel Equilibre Esch2022 European Migration Network Expo 2020 Dubai

Roxane Haas Martine Hansen Carlo Hein Julien Henx Tom Hickey Tonika Hirdman Le Homard Bleu Horesca Muhammad Hossen

66 16 10

K Ahmed Kahilia Fernand Kartheiser Steve Kaspar Keda Consulting Mark Kitchell Pit Klein Daniel Klemetz Kneip Gaspar Kocsis François Koepp

48 60 94 76 94 66 94 32 89 88

L Tine A. Larsen 42 Paulette Lenert 58, 94 Déi Lénk 59 Lëtzebuerg City Museum 82 Lëtzebuerger Vëlos-Initiativ 52 Ni Xia Lian 66 Julien Licheron 24 LuxDev 66 Luxembourg Chamber of Commerce 68 Luxembourg Institute of Socio-Economic Research 24 Luxembourg Ministry of Foreign Affairs 64 Luxembourg National Research Fund 42 Luxembourg Trade & Investment Offices 66 Luxembourg Private Equity & Venture Capital Association 30 Luxinnovation 41

Nicolas Mackel Claus Mansfeldt Charline Mathias Mazars Luxembourg Richard Mazelier Lisa McLean Claude Meisch Roberto Mendolia Filippo Meneghetti Angela Merkel Metaform Mieterschutz Mipim Aditya Mittal MJ Hudson Christian Mosar Mudam Mu Design Vivien Muller Musée National d’Histoire et d’Art

N Alexander Nanau 66, 94 National Data Protection Commission 42 Neistart Lëtzebuerg 80 Neon Marketing Technology 14 No Big Deal 94

O Nathalie Oberweis 59 Organisation for Economic Co-operation and Development 22, 66 ORT Mullerthal 91

P Katerina Pantazatou Michel Parisse Giovanni Patri Dylan Pereira Pirate Party Preqin PwC

R 94 30 66 12 90 94 74 24 66 62 66 50 66 16 30 80 82 40 40 82

42 94 94 94 60 30 33

Ramborn Cider Co Carole Reckinger Michel Reckinger Red Cross Marc Rettel

15 75 23 66 82

S Enrique Sacau Samsa Film Marc Schiltz Julie Schroell Pascal Schumacher Seed Danel Sinani Adolfo Sommarribas Sovi Solutions Raphaël Stacchiotti Stampify Statec Misch Strotz Camille Studer Denisa Šustalová Swancap Swiftr

32 66, 94 42 66, 83, 94 94 89 94 24 40 66 40 14, 20 14 94 94 30 94

T Talkii Sam Tanson Tarantula Team Lëtzebuerg Cindy Tereba Tokyo Olympics Olivia Tournier-Demal Donald Trump Twisted Cat

40 80 66 66 68 66 30 66 91

U UBS Union des Entreprises Luxembourgeoises United Nations University of Luxembourg

Index

33 23 62, 66 42, 56

Philippe Vangeel

W David Wagner Nicolas Wagner Jennifer Warling Alessio Weber Pit Weber Mark Weedon Imeshi Weerasinghe Denis Weinquin Weo Charlotte Wirion World Food Programme

59 66 66 40 89 94 38 52 38 38 66

Y Karim Youssef

Z Stefan Zachäus

Auntie Eleanor Burning questions

JANUARY 2021

This month, Delano’s advice columnist answers reader queries on giving gifts to people who don’t want anything, new year’s resolutions and the secret to a good glass of Glühwein.

Dear Auntie Eleanor, buying a Christmas present for my beloved is hard enough at the best of times, but since Marie Kondo became big, it’s become impossible--he simply doesn’t want anything. How can I restore my partner’s materialism, so I can buy him a fitting present? Belinda in Bivange

Gentle reader, it sounds to me as though the pandemic has helped your beau to put his needs in perspective. If there is one thing I have learned in 2020, it is that the greatest gift can be time spent with the people you love--these memories will keep you warm better than novelty socks ever could and linger longer than a fancy bottle of gin. If, however, your partner no longer sparks joy in you, then time spent apart can be equally rewarding. Dear Auntie Eleanor, I’m curious, are you setting any new year’s resolutions for 2021? Dirk in Diekirch

Gentle reader, I hadn’t actually planned on it, but now that you mention it, why not? I’ve been quite inspired by those young chaps doing “The Every Corner Tour”, as they’ve visited all 102 communes this summer and have been posting videos all about it. Personally, I’d love to walk part of the Saint James way, which stretches all the way from the northern border

with Belgium and Germany and ends in Schengen, but who knows if these old knees will hold up. I’m also overdue for a visit to the Valley of the Seven Castles, and that walk only stretches some 37km, which I could do over a few weekends. Of course, I could probably do with fewer tipples in 2021... but who am I kidding? That’ll have to wait until after I get a vaccine. Luckily at my age, I’ll probably be one of the first in line!

of Chianti or cabernet, half an orange, a cup of water, some sugar, cinnamon sticks and cloves, finally add a shot of rum for that extra warm fuzzy feeling and enjoy with a piece of Christmas stollen.

caught on fire thanks to one of those darn hygge candles that someone bought me. Times are changing-I thought to myself as the issue went up in smoke-and gentle readers, I’m going × to change with them.

Dear Auntie Eleanor, I heard that you’re going digital and will no longer contribute to Delano’s print edition. Is that true and, if so, why the change? Gary in the Gare district

Gentle reader, indeed, starting in January 2021, my column shifts from the magazine to delano.lu . As long as these old fingers hold up, you’ll find me sorting out reader problems on the site once a month or so. As for why, it came to me in a flash. I was sitting down with a nice after-dinner cigar and a copy of Delano , when the magazine accidentally

Dear Auntie Eleanor, how should I get my annual Glühwein fix now that all the Christmas markets have been cancelled? Lily in Lieler

Gentle reader, it’s a dilemma, isn’t it? Although I am a big fan of a nice hot mug of mulled wine (preferably with a shot of Amaretto) myself, I have to admit that I have always preferred enjoying it in the comfort of my own home, in front of the fireplace, rather than trapped between strangers and the smell of burned chestnuts at the Christmas market. So in order to bring some of the Christmas spirit to your living room, I recommend staying away from the shameful bottled versions of the beverage and instead make your own. I will even let you in on my nan’s old Glühwein recipe: take a bottle

SEND IN YOUR QUESTION Want to know something about Luxembourg? Contact Auntie Eleanor via AuntieEleanor@delano.lu. Please indicate if Delano can publish your name or if you wish to remain anonymous.

Illustration ¯ Jan Hanrion

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