Lex Delles (Minister of the Economy , SMEs, Energy and Tourism ): Luxembourg Facing Global Uncertain ty

Lex Delles (Minister of the Economy, SMEs, Energy and Tourism): Luxembourg Facing Global Uncertainty

As global tensions and economic uncertainty continue to reshape markets in 2026, Lex Delles, Minister of the Economy, SMEs, Energy and Tourism, reflects on the country’s recent economic trajectory. He discusses economic resilience, the evolution of the start-up ecosystem, and strategic priorities in AI, data centres, and digital sovereignty. Interview, 2 March 2026.

What is your assessment of the economy’s evolution over the past two years?

Since the Covid-19 pandemic in 2020, the global economy has faced multiple crises: supply chain disruptions, the war in Ukraine, soaring energy prices, rising geopolitical tensions, and now war in Iran. Although inflationary pressures eased from 2024 onwards, significant economic uncertainty persisted in 2025, partly due to the United States’“America First” policy. Nevertheless, the risk of a prolonged trade war gradually receded thanks to new agreements, particularly between the European Union and the United States. These agreements restored confidence and stabilised international trade. At the beginning of March 2026, uncertainty surrounding tariffs remains high, while renewed tensions in the Middle East are fuelling fresh concerns on energy markets. This is particularly the case following the closure of a strategic section of the Strait of Hormuz, through which one fifth of global oil production and one fifth of liquefied natural gas supplies transit. In Luxembourg, after the 2020 recession and a swift rebound in 2021, economic activity slowed between 2022 and 2024. Although the direct impact of US tariffs remained moderate in 2025, the country continues to be dependent on global fluctuations. Still, performance proved to be more resilient than anticipated: with estimated moderate growth of 1.0 percent in 2025. Luxembourg was beginning to recover from three challenging years, although remaining below its historical average growth rate of 2.9 %, recorded between 1995 and 2024. Much now depends on how the situation in the Middle East unfolds in the coming weeks.

“Despite global uncertainties, Luxembourg remains resilient by focusing on innovation and digital sovereignty.”

Luxembourg officially lists 823 start-ups on Directory.startupluxembourg. Which truly have long-term potential?

For more than a decade, the Ministry of the Economy has implemented measures to support start-ups from inception. Research and innovation grants, alongside flagship programmes such as Fit4Start, which is dedicated to launching and accelerating young companies are how this commitment takes shape. Start-ups and scale-ups are important for innovation, digital transformation, talent attraction, and economic diversification. It is a well-known fact that failure rates remain high across entrepreneurial ecosystems. Therefore, my goal is to attract talented founders, support them effectively, and maximise their chances of success. Encouragingly, an increasing number of companies are securing funding between one and fifteen million euros while expanding internationally from Luxembourg. That is exactly why, we officially launched Fit4Scale this year in partnership with Luxinnovation, to support promising ventures. Five start-ups joined this inaugural cohort: Partao, ClimateCamp, Kidola, A352, and AIRMO, illustrating the ecosystem’s vitality. A distinctive element of Fit4Scale involves sharing experiences with entrepreneurs who previously went to the same process and succeeded. Cofounders of Tadaweb, EuroDNS, Salonkee, Excellium Services, and Talkwalker actively participate in selection and mentoring. A collaboration between public and private actors strengthens competitiveness and equips Luxembourg’s start-ups to expand beyond national borders.

How do you address AI, data centres, and cybersecurity challenges linked to energy, land, GPUs, and models?

Artificial intelligence, data centres, and cybersecurity form essential pillars of economic competitiveness. The challenge lies in aligning technological ambitions, listed in the strategic initiative “Accelerating Digital Sovereignty 2030,” with responsible management of energy and land resources to ensure sustainable development. This requires action on multiple fronts. On one side, energy planning occurs in close coordination with network operators to reinforce infrastructure, expand interconnections, modernise grids, integrate renewable energy sources, and optimise existing assets. On another side, a pilot project dedicated to densifying economic activity zones plans to accommodate more companies on these zones on the long term. At the same time, we are seeking to promote the establishment of energy-efficient data centres that offer maximum security and resilience, alongside sovereign cloud solutions. Luxembourg already benefits from ultra-high-speed connectivity, Tier IV-certified data centres, sovereign cloud services, and a supercomputer optimised by AI to complement MeluXina. On a technical plan, the government accelerates AI adoption through a coherent ecosystem uniting public institutions, private actors, and research. Targeted initiatives such as the Luxembourg AI Factory, the one-stop shop to accompany innovative companies and the Luxembourg Digital Innovation Hub create a supportive ecosystem for companies. Public-private partnerships pool investment, accelerate access to GPUs and advanced models, and promote applied research. Joint calls for projects with the Luxembourg National Research Fund, supported by Luxinnovation, illustrate this strategy, including recent results from the “High Performance Computing and Artificial Intelligence” and a new Joint Call for R&D projects launched on March 1 targeting data, AI, and quantum technologies.