Here is a short study I did about whether or not Luxembourg may become the new Cyprus. Lot’s of people have been claiming this and going on and on about the potentially grave situation in Luxembourg. Drawing similarities between Luxembourg and Cyprus. Proclaiming how short-lived Luxembourg’s current utopia may be. So let me tell you: That’s all quite far fetched – mostly…

So my study below (unfortunately in German for all non-German speakers) says basically:

  1. Luxembourg’s main banks are much more sound than Cyprus’ banks.
  2. Luxembourg has been able to keep unemployment low. However, this is only because the government basically took in a good number of the unemployed.
  3. a potential future problem for Luxembourg comes from the currently bad trend on the balance sheets of the monetary financial institutions – they have been decreasing substantially and continuously since the crisis 2007. Short-term effect or long-term trend? good question… Anyone interested in doing a study on this? contact me…
  4. public debt from pension problem is going to be the killer if not addressed asap!

read more here : Luxemburg_IS_4_2013b. This article may or may not eventually come up in Tageblatt (Luxembourgish Newspaper).