On Friday, the Luxembourg government's cabinet meeting agreed to the merger of Luxembourg for Business into Luxinnovation, with the dissolution du Luxembourg for Business GIE (economic interest group) and the pooling of skills of both entities.

In November, Luxembourg's Minister for the Economy, Etienne Schneider told parliament that selection criteria for potential foreign investors have changed in recent years. For him, a political, social and stable tax environment certainly remains a very important factor, but it has become less important for the investor who wishes to settle in Luxembourg. "Whether ICT equipment or cars, what matters more for an investor is the importance of the activity sector to which it belongs, the potential development of this sector, the importance that the authorities will agree and especially the specific characteristics of the host countries offers these companies. Through its innovation clusters and networks representing different economic sectors, Luxinnovation has the industry expertise necessary to enable a personalised welcome of concrete investment projects" he had stated.

With about 50 employees, the National Agency for the promotion of Innovation and Research (Luxinnovation) has expertise and fulfills the tasks complementary to those of "Luxembourg for Business" which currently employs 3 people. Pooling allows an efficiency gain to promote Luxembourg as a destination for foreign investment, while respecting and especially keeping the role of all the other actors involved in economic promotion.

Full details are expected to be revealed on Tuesday by Minister Schneider, when he is scheduled to reveal details of the reform of the country's economic promotional efforts, in conjunction with the Digital Lëtzebuerg strategy.