Lex Delles: "A trade war is a road to nowhere. The EU must be united and pragmatic"

In an interview with Le Quotidien, Luxembourg's Minister of Economy Lex Delles (Lex Delles) spoke out harshly about US actions in global trade, expressed confidence in the sustainability of the country's economy and explained his decision to step down as chairman of the Democratic Party.

Delles said the Donald Trump administration's tariff policy was causing "toxic uncertainty" in markets and would inevitably lead to inflation on both sides of the Atlantic. "This is a loser not only for Luxembourg, Europe and the US, but for the global economy as a whole," he said.

The minister pointed to a direct threat to exporters: steel, aluminium and automotive components manufacturers are particularly affected. In addition to losses from duties, the European market could face an oversupply of Asian products previously destined for the US.

Delles insists: "Europe's response must be a unified policy, not a mirror escalation." He reminded that the EU remains the largest internal market in the world - this is the main trump card that must not be lost.

"If Luxembourg negotiated with the US alone, it would be at the very back of the queue. But when the EU does it, the weight is different," he emphasised, defending the approach that trade agreements are the exclusive competence of the European Commission.

The minister is also sceptical about the idea of increasing imports of liquefied natural gas from the US, which Washington is actively promoting: "This creates new dangerous dependencies," he warned. Luxembourg, he said, relies on the development of renewable energy sources and regional co-operation - especially in the field of offshore wind generation and hydrogen.

In April, for example, 35.5 per cent of all electricity consumed in the country was generated locally. However, full autonomy is difficult to achieve, as Delles recognises, and therefore investment in cross-border infrastructure is important.

To mitigate the effects of the energy crisis, the government has allocated 170 million euros to subsidise prices. As a result, Delles says Luxembourg offers households and businesses the most favourable tariffs in the region. Nevertheless, he recognises the need for a sustainable model that can preserve purchasing power and promote decarbonisation.

Turning to the internal agenda, Delles commented on the conflict with trade unions opposed to the extension of trading hours: "If one side blocks everything and is not prepared to compromise, we cannot move forward." He called for the restoration of full social dialogue and stressed that he had received representatives from both unions and employers.

He explained his decision to support the reform with a mandate from the coalition agreement between CSV and DP: "The aim is to create a modern and comprehensible legal framework."

Referring to criticism from Marc Spautz, head of the CSV parliamentary faction, Delles said it was unacceptable to undermine the agreements made in the coalition, especially at such a sensitive time of labour law reform.

In announcing his resignation as chairman of the Democratic Party, he cited time constraints and expressed support for Carole Hartmann, who is running to replace him: "She knows the party and is ready to work with all her heart. She can count on my vote.

At the end of the conversation, Delles emphasised: despite difficult times, from geopolitical conflicts to global economic turmoil, Luxembourg has every reason to remain confident in its future if it keeps pace with Europe and develops a sustainable economy.