60% of Foreign Investment Funds distributed in Japan are domiciled in Luxembourg

Pierre Gramegna Discusses Brexit, eCommerce Taxation, Green Finance with Japanese.

As part of his mission to Japan from Wednesday to Friday last week, Pierre Gramegna, Luxembourg’s Minister of Finance, met his counterpart Taro Aso, Deputy Prime Minister and Minister of Finance of Japan.

The two ministers welcomed their excellent bilateral relations and discussed the economic and financial situation in Europe, as well as the latest developments in the Brexit negotiations. They also discussed the subject of e-commerce taxation and identified new avenues for collaboration between Japan and Luxembourg, particularly in the area of ​​green finance.

The finance minister also met with the heads of the two major Japanese insurers, Tokio Marine and SOMPO, who stressed their interest for Luxembourg and its financial centre. In the context of Brexit, they have chosen to create a new European hub in Luxembourg that will allow them to continue serving their customers in the European Union, once the UK will be out (of the EU). Discussions with Japanese insurers focused on the various aspects of their respective strategies in the European market and the role that Luxembourg can play.

During his stay in Tokyo, Minister Gramegna held working meetings with the leaders of several Japanese Fintech companies to discuss their development strategies. The Minister also explained the benefits of the Luxembourg ecosystem for the development of their innovative activities.

On Friday, Minister Gramegna delivered an opening address in Tokyo, as part of the Asia Roadshow, a seminar organised annually by ALFI. In front of more than 150 people, the Minister emphasised the excellent financial relations between the two financial centres. Today, 60% of the foreign investment funds distributed in Japan are domiciled in Luxembourg and the five main Japanese banks established in Luxembourg have also extended their activities in this sector. The minister also stressed that the Luxembourg economy is doing well, with a strong recovery in growth and investment and a steady decline in unemployment.