That article is about Business Leaders – Luxembourg. Luxembourg is not one of the major economic countries in Europe in most people’s opinions. However, they are actually quite a powerful country for the size of land. They are a country which is rich in the history of both banking and the steel industry. Luxembourg has another advantage so far in that it is land locked. This allows it to tap the resources of its neighbors which include Belgium, France and Germany. All of these countries have large economies that include many millions of workers.
They also are all somewhat unique, and have the ability to be adapted to the economy that Luxembourg offers. The financial sector of Luxembourg is huge. PayPal, which is an online payment processor has dealt with all of their European partners through their Luxembourg banking center. 28% of the GDP of the country actually comes from banking and financial services.
While most of the banks are foreign, nearly all of the workers are from Luxembourg or the surrounding countries. Just because the banking industry is quite large does not mean that everything went perfectly. In fact, there were some issues with the banking industry in the country during the recent recession. However, due to smart lending procedures and small risks taken, there was minimal loss among the actual banks themselves.
The government of Luxembourg however does know how important the banking sector is to its economy. It tried to prop up the banking sector by infusing capital into several of the key banks that were experiencing issues during the economic downturn. However, this led to the government itself declaring a 2% budget deficit due to the high amount of spending.
Telecommunications is another big industry in Luxembourg. This is partially due to the fact that the local banks that deal with the oversees banks need a way to communicate. While they may have done this by mail way back in the last century, the fastest way to do it now is through the internet. New connections have to be made using the latest up to date fiber technology, and the only way to do that effectively is to have a high end telecommunications industry.
Taxes are somewhat high in Luxembourg due to the small size of the country and the necessary government oversight. There are not a whole lot of people who actually live in the country, so the majority of the income is actually from other taxes and fees. Still, Luxembourg is a wonderful economy and is going to thrive in the future!