Luxembourg supported digital currency and EU reform
Maryna Yazbeck, Unsplash
From 19 to 20 June 2025, Luxembourg's Minister of Finance, Gilles Roth, attended key meetings of European Ministers in the framework of the Eurogroup and the Economic and Financial Affairs Council (ECOFIN) held in Luxembourg. Against the backdrop of the accelerating transformation of the global economy, three strategic issues came into focus: the competitiveness of the eurozone, the implementation of the digital euro and sustainable defence financing.
Eurozone finance ministers have heard the International Monetary Fund's analytical report on fiscal policy, competitiveness and productivity. According to the IMF's assessment, the euro zone faces a chronic lag in technological investment and innovation, which threatens its position in the global market.
In response, ministers discussed ways to stimulate growth without compromising fiscal sustainability. This included the need for reforms that not only broaden the tax base but also create space to finance the green and digital transitions.
One of the central topics was the progress of the digital euro project being developed under the auspices of the European Central Bank. Ministers analysed the current phase and the issues on the agenda, including legal safeguards, privacy issues and interaction with commercial banks.
"Luxembourg supports the digital euro project and innovation in the financial sector. The EU must demonstrate leadership - digital, strategic and regulatory. There is progress, but key provisions still need to be legally enshrined," said Gilles Roth.
The digital euro is seen not only as an alternative to cash, but also as a response to the expansion of private cryptocurrencies and China's efforts to internationally popularise the digital yuan.
The ministers discussed the customs tax reform as well as the spring package of recommendations from the European Commission in the framework of the European Semester, the EU's economic policy co-ordination instrument.
The events of June 2025 confirm: the EU is in a transformation phase in which digitalisation, defence and energy are becoming as important as classical budgetary discipline. Luxembourg, as the financial centre of Europe, is taking an active position in this restructuring and is betting on technological leadership.
