Small in size but mighty in influence, Luxembourg wields a quiet yet decisive hand in shaping Europe’s green, financial, and digital policies, proof that power in the EU isn’t measured in square kilometres.
When European Union leaders gather in Brussels, Luxembourg’s diplomats are the quiet bridge-builders binding the bloc together.
“Small country but big power, Luxembourg’s influence comes from the quality of its engagement rather than the quantity,” said Anne Calteux, the European Commission’s Representative in Luxembourg.
Strategic mindset precedes EU
Calteux, who leads the Commission’s local office, explains that the Grand Duchy’s pragmatic and collaborative mindset dates back to the EU’s origins.
“Luxembourgish diplomats are known for their expertise, their networks, and their stability. In the current context of rapid change, Luxembourg remains a reliable voice for European values,” said Calteux.
In the corridors of Brussels, Luxembourg’s civil servants quietly drive some of the EU’s most technical and consequential files, health, finance, and sustainability among them.
“Because Luxembourg’s team in the Permanent Representation isn’t huge, people handle several files at once, that gives them a broader view and helps bridge policy areas,” said Calteux.
One example is public health. During her time in Brussels, the representatives worked to advance cross-border healthcare and digital health initiatives. “Luxembourg is a hub for data and innovation. It saw the potential of digital health early on and used that to build partnerships and support EU-wide initiatives,” said Calteux.
Green Finance: from niche to norm
If health policy highlights Luxembourg’s strategic agility, green finance showcases its global reach. The Grand Duchy hosts the world’s first Green Exchange, the Luxembourg Stock Exchange’s sustainable platform, and manages around 58 percent of all global green bonds. “Luxembourg never sees sustainability and finance as opposing forces, it understands that financial innovation and sustainability reinforce each other,” said Calteux.
Luxembourg was one of the EU’s earliest backers of the taxonomy for sustainable activities, the bloc’s flagship green finance rulebook.
As the EU faces the daunting task of financing its green transition, Luxembourg’s financial centre provides both expertise and credibility. “Public money alone won’t be enough, there is a need to attract private capital, and countries like Luxembourg show how it can be done.”
During the COVID-19 pandemic, Luxembourg’s reliance on cross-border flows made it acutely vulnerable to border closures and supply disruptions. That experience transformed the country into a vocal advocate for coordinated EU health responses. “From day one, Luxembourg understood that acting together was the only way forward, we supported the joint vaccine procurement immediately. As a small state, we couldn’t have negotiated favourable terms alone,” said Calteux.
The European Commission’s 2025 Work Programme, “Europe’s Independence Moment,” streamlining regulation and enhancing competitiveness, centres on connecting EU priorities to local realities. “It’s about doing more with less, we want to make EU law simpler, clearer, and easier to implement. Out of 18 new proposals, 11 focus on simplification,” said Calteux.
“Simplifying regulation isn’t deregulation, it’s making Europe more functional and competitive”
That effort responds to citizens’ and economic operators’ frustration with complexity and bureaucracy. “People often say, ‘There are too many rules, and they’re contradictory.’ We hear that. Simplifying regulation isn’t deregulation, it’s making Europe more functional and competitive,” said Calteux.
A small country with a continental reach
Luxembourg’s compact ecosystem, where policymakers, researchers, and entrepreneurs know one another, makes it fertile ground for experimentation. “Finance, innovation, and integration are Luxembourg’s strengths,” said Calteux. It’s a small ecosystem where actors meet often and collaborate quickly, where one can test ideas on a small scale, then scale them up.
International partnerships are seen as another lever of influence. “Luxembourg looks for new partnerships not only within the EU but beyond. To Asia, the U.S., to export ideas and attract investment. It’s what the European Commission calls open strategic autonomy: being globally connected with trustworthy partners while staying European at heart,” said Calteux. One of the core missions is ensuring citizens understand how EU policies shape daily life, from renewable energy projects to job training funded by European programmes.
“Many people tell me, ‘Brussels is complicated, so we explain who does what and show concrete examples of how EU initiatives help in Luxembourg, charging stations, photovoltaic installations, upskilling programs,” said Calteux. Her team engages through Europe Direct centers, local councillors, and nationwide campaigns like “NextGenerationEU in Luxembourg.”
“We go where people live, local is the new centre,” said Calteux.
The representation also invests heavily in outreach to young people, from school visits to collaborations with social media influencers. “We’re not on TikTok, but we work with those who are, it’s crucial to reach youth with factual, engaging content. Communication starts with listening,” said Calteux. That multilingual effort, often in four languages, mirrors Luxembourg’s own diversity. “Fifty percent of the population isn’t Luxembourgish, that’s a strength, but it’s also a communication challenge,” said Calteux.
“Luxembourg shows that being small doesn’t mean being silent”
Luxembourg’s quiet diplomacy and bridge-building ethos may lack the theatricality of larger powers, but its influence is woven through the EU’s most consequential debates, from digital sovereignty to sustainable finance. “Luxembourg shows that being small doesn’t mean being silent, it’s about vision, partnerships, and the ability to turn challenges into opportunities – exactly what we strive for in the European Commission. That’s Luxembourg’s true power in Europe,” said Calteux.
This article was published in the 8th edition of Forbes Luxembourg.
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