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Bilateral relations between Switzerland and Luxembourg
Relations between Switzerland and the Grand Duchy of Luxembourg are marked by the fact that the two countries have numerous features in common: a central position in Europe, multilingualism, two national languages in common (French and German). Switzerland is a popular destination for visitors from Luxembourg, be they holidaymakers or students.
Grand Duke Henri and his wife and children all studied in Geneva, and they regularly holiday in Switzerland.
Grand Duke Henri and his wife and children all studied in Geneva, and they regularly holiday in Switzerland.
An important partner
The two countries have maintained diplomatic relations since 1938. Official government meetings are held on a regular basis. Luxembourg is a founder-member of the European Communities, now the EU, and the location of several EU institutions. It considers it very important for the small EU member states to play their proper roles within the Union. Luxembourg political figures like Gaston Thorn and Jacques Santer, both former Presidents of the EU Commission, have made important contributions to European unity. Luxembourg is therefore also an important partner to Switzerland in the context of our relations with the EU. The volume of trade between Switzerland and Luxembourg is rather modest. Trade in services, on the other hand, is not insignificant, and currently stands at CHF 13 billion, i.e. five times the trade in goods. In 2007, Switzerland’s exports to Luxembourg amounted to almost CHF 5 bn and imports totalled approximately CHF 8 bn. Financial services accounted for almost 90% of this figure, which shows how dynamic the interaction is between the Swiss and Luxembourg financial centres. For Swiss direct investment Luxembourg is the third most important state in the EU – after the UK and France. Concentrated in the financial sector, its volume totals over CHF 20 billion. Investment by Luxembourg in Switzerland has doubled in just a few years to some CHF 10 billion. This makes Luxembourg the fourth-largest foreign investor in Switzerland.
