Robert Goebbels: The European Visionary
Robert Goebbels, a member of the Luxembourg Government from 1984 to 1999, notably serving as Minister of Economy from 1989 to 1999, and later a Member of the European Parliament from 1999 to 2014, witnessed significant transformations in Luxembourg’s and Europe’s economy over the past 50 years.
How did Luxembourg evolve during the steel crisis of the 1970s?
The 1973 energy crisis marked a turning point for Luxembourg, whose economy was primarily based on steel and agriculture. The crisis exposed major vulnerabilities, nearly pushing the country to collapse. The government, a coalition of liberals and socialists, implemented emergency measures. Jobs funded by a special tax helped keep thousands of steelworkers employed in tasks such as repainting schools, cleaning forests, and carrying out construction projects. This tripartite collaboration between unions, the government, and businesses became a hallmark of national resilience. Economic diversification began when ministers sought new sectors to replace the declining steel industry. Luxembourg’s adaptation highlights its ability to overcome crises through collective vision and long-term planning.
What was the significance of the Schengen Agreement?
Signed in 1985 under Luxembourg’s presidency, the Schengen Agreement was a bold initiative to abolish internal European borders. Initially, few believed in its success. The project was entrusted to junior officials rather than foreign ministers, and the first measures involved simplified customs checks. However, growing public demand led to the complete removal of borders. Schengen became a cornerstone of European integration, promoting the free movement of people and goods. Beyond economic benefits, the agreement fostered human and cultural exchanges, especially in border regions like Luxembourg. The Schengen Information System proved instrumental in combating crime and enhancing police cooperation, leading, for instance, to the recovery of 10,000 stolen cars.
"We tried to transform our economy and diversify it as much as possible."
©Anne Sophie Lindström
How has Luxembourg’s economy evolved in recent decades?
Luxembourg transitioned from an industrial hub to a finance-driven economy. However, there was a conscious effort to avoid falling into the trap of a new mono-industry. Today, the country is overly reliant on the financial sector. While investment funds provide a degree of stability, strategic decisions are made abroad, leaving Luxembourg in a subordinate role. Diversification efforts, such as the establishment of the maritime sector and space exploration initiatives, reflect a drive for innovation, but their long-term impact remains uncertain. High housing costs and challenges faced by cross-border commuters also threaten the country's attractiveness. Sustainable solutions must be found swiftly to safeguard Luxembourg’s competitiveness and social cohesion.