Yuriko Backes on a trip to London to further strengthen economic ties with Great Britain

Yuriko Backes was first received by John Glen, the Economic Secretary to the UK Treasury and Minister for Cities, for a bilateral meeting, which follows an initial exchange in Luxembourg in March this year. The ministers discussed current issues and common interests and took stock of the bilateral cooperation. The Minister of Finance emphasized: “It was a pleasure to see John Glen again to discuss the development of our financial centers and the strengthening of our cooperation. In the current context characterized by uncertainty, an in-depth and continuous dialogue with the United Kingdom is more important than ever. As one of the top three international financial centers, our Place and the City are closely connected. Well-developed and interconnected financial markets will continue to be crucial to mobilizing the necessary capital to finance the green and digital transition.”

The Chancellor of the Exchequer then signed with Lucy Frazer, Chancellor of the Exchequer, a new tax treaty between Luxembourg and the United Kingdom aimed at avoiding double taxation and preventing tax evasion. This new convention, which will replace the old 1967 treaty, will greatly promote trade and investment between the two countries and contains the latest standards in terms of tax transparency resulting from work on the OECD’s BEPS. On this occasion, Lucy Frazer emphasized: “I was pleased to contribute to strengthening the long-standing partnership that exists between the UK and Luxembourg by signing this new tax agreement. Through it, trade and cross-border investment between our two countries will continue to thrive in the future.”

Yuriko Backes also took advantage of her stay in London to meet the directors of several British financial institutions present in Luxembourg. She was also invited by the City of London Corporation to an exchange of views with city representatives on the future development of the UK financial center and its post-Brexit relations with the continent. These discussions will have made it possible to take stock of their strategic priorities in the EU, in particular in the digitalization of financial services and sustainable finance.

During an interview with Nikhil Rathi, the director of the Financial Conduct Authority – the regulator of the British financial sector – the minister was able to take stock of the priorities for the regulation of the financial sector in Great Britain.

Finally, Yuriko Backes attended the official launch ceremony of the Business Club Luxembourg-Great Britain. This new platform, jointly created by the Chamber of Commerce and the Embassy of Luxembourg in London, will aim to connect business in the two countries and aims to create new fruitful Anglo-Luxembourg partnerships.

Minister Yuriko Backes comments: “The United Kingdom remains an important partner for Luxembourg and its economy, and my meetings with the main British players, the signing of a new tax agreement, but also the launch of the Business Club Luxembourg-Great Britain are concrete and significant steps towards further strengthening this longstanding partnership.”

From London, the Finance Minister will travel to Paris, where she will participate in the meeting of the OECD Council at ministerial level, which this year will be held under the theme “The future we want: better policies for next generation and a sustainable transition”.

Communicated by the Ministry of Finance

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