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Nanovic Institute for European Studies Given strong bilateral ties between Luxembourg and the United States, it comes as no surprise that the two nations share in a high level of financial activity.88 Importantly, Luxembourg is also a vocal advocate for European integration.89 When the Trump administration came to power in the United States, Luxembourg, along with a host of EU members, felt that the U.S. was no longer dependable as an ally. Luxembourg’s commitment to openness and economic diversification, due to its growing dependence on the financial sector in recent decades, played a sizable role in shaping its reaction to the 2020 U.S. election. Journalists and government officials made it clear that Luxembourg would be better served by a Biden administration, citing hopes for improved transatlantic trade.90 However, hope for new economic opportunities in partnership with the U.S. is tempered by lingering fears about the Obama administration’s proposed Transatlantic Trade and Investment Partnership (TTIP). There is concern among the Luxembourgish population that a free trade agreement similar in nature to the TTIP would give foreign investors too much power.91 The implications of a Biden administration for Luxembourg as a financial center is concentrated on the possibility of a U.S. financial transaction tax (FTT). President Joe Biden and Vice President Kamala Harris have already been vocal about their intentions to raise corporate taxes.92 Despite these fears and the sense that they may find more reliable allies in the European Union, Luxembourg will continue friendly diplomatic relations with the United States, even while they explore and pursue transatlantic economic opportunities with lucidity and caution.
The Center and the West: Austria, France, and Germany AUSTRIA
Under President Donald Trump, Austria found little out of the ordinary in terms of diplomatic relations. Both countries share memberships in several international organizations and recently engaged in a bilateral strategic dialogue focusing on home affairs, cybersecurity, and they also share an interest in the fight against terrorism.93 President Trump and Austria’s
University of Notre Dame | Keough School of Global Affairs
