The 19th Global Financial Centres Index (GFCI) lists Luxembourg as the leading financial centre in the Eurozone, 2nd in the European Union after London and 3rd most competitive European financial centre.
Luxembourg has improved its ranking by 5 places compared to GFCI 18. As in previous years, it is identified as the only European financial centre likely to become more significant in the future.
The ranking rates financial centres by several factors of competitiveness, such as business environment, human capital, taxation, reputation, infrastructures and financial sector development.
More information about the GFCI can be found here.
Luxembourg as a Leading Financial Centre
Luxembourg comprises two principal regions: the Oesling in the north as part of the Ardennes massif, and the Gutland (“good country”) in the south. With an area of 2,586 square kilometres (998 sq mi), it is one of the smallest sovereign states in Europe (about the same size as the state of Rhode Island or the English county of Northamptonshire). Luxembourg had a population of 524,853 in October 2012, ranking it the 8th least-populous country in Europe.
As a representative democracy with a constitutional monarch, it is headed by a grand duke, Henri, Grand Duke of Luxembourg, and is the world’s only remaining grand duchy. Luxembourg is a developed country, with an advanced economy and the world’s highest GDP (PPP) per capita, according to the United Nations in 2014. Its central location has historically made it of great strategic importance to numerous powers, dating back to its founding as a Roman fortress, its hosting of a vital Frankish castle during the Early Middle Ages, and its role as a bastion for the Spanish Road between the 16th and 17th centuries.
Luxembourg is a founding member of the European Union, OECD, United Nations, NATO, and Benelux, reflecting its political consensus in favour of economic, political, and military integration. The city of Luxembourg, which is the country’s capital and largest city, is the seat of several institutions and agencies of the EU. Luxembourg served on the United Nations Security Council for the years 2013 and 2014, which was a first in the country’s history. In 2016, Luxembourgish citizens had visa-free or visa on arrival access to 172 countries and territories, ranking the Luxembourgian passport 6th in the world, tied with states like Canada or Switzerland.
Photo credit: mariusz kluzniak via Visualhunt / CC BY-NC-ND
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