Delano February - March 2019

No. 64 FEBRUARY/MARCH 2019

DIGITAL TAX DEBATE

42 BURNOUT Luxembourg’s workforce is stressed out. Know the signs and get yourself back on track.

78 SAM TANSON The new culture minister talks budgets, action plans and Esch 2022.

30 DIGITAL FIRMS

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My new favourite recipe: black and white contrasts with a squeeze of fresh colour

Brexit endgame

Courage and humanity wishing to register for settled status in the UK after Brexit was one of the few bright points of what has been a frustrating and at times disastrous 2019 so far for anyone who will be affected by Britain’s withdrawal from the European Union. There should be “no financial barrier for any EU nationals who wish to stay” in the UK, she told parliament. While it is commendable that May should finally be thinking of people rather than political survival, the move comes after EU residents in the UK were left in limbo far too long and, according to several reports, have felt ostracised, if not downright threatened by the attitude of some British people post-referendum vote.

By contrast, Luxembourg prime minister Xavier Bettel has, from the outset, put people first when talking about Brexit. In January, Bettel again expressed regret at the UK’s decision--“there are no winners of Brexit,” he said--but reiterated his government’s position that the rights of British citizens in Luxembourg and Luxembourg citizens resident in the UK remain the priority.

Knowing that the majority wanted the UK to remain in the EU, Luxembourgers have generally felt sympathy with the plight of British residents of the grand duchy, even if they have sometimes made polite fun at their expense.

Of course, we wouldn’t be in this mess if David Cameron had had the political courage to ignore the mutterings from the Eurosceptic wing of his own Conservative party and the inexistent threat posed by Ukip. The latter, let it be remembered, did not even have any representation in Westminster until two Conservative MPs defected and won by-elections in 2014. It even contrived to lose one of those two seats at the 2015 general election.

The British media has always been quick to attack European Commission president Jean-Claude Juncker for all manner of reasons. But back in 2008, as Luxembourg prime minister, Juncker had the courage and political skill to get through parliament a government bill on assisted dying against the will not only of more conservative elements within his own party and the Catholic church, but even against the express wishes of Grand Duke Henri, whose refusal to sign the bill into law temporarily caused a constitutional crisis.

That is the sort of fortitude in leadership that UK politics lacks right now.

Luxembourg has time and time again shown that its politicians

ILLUSTRATING DELANO This edition’s cover was illustrated

by Davide Baroni, an Italian illustrator. His work has been recognised by 3×3 - The Magazine of Contemporary Illustration, the iJungle Illustration Awards and the Italian illustration awards.

have both courage and humanity in spades.

Duncan Roberts Editor-in-chief

Letter from the editor

Theresa May’s concession to waive the £65 application fee for EU citizens

3

18’19

GRAND THÉÂTRE

SAISON

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© SOLREY

Libretto Alexandre Desplat & Solrey Composition and Musical Direction Alexandre Desplat Direction and Video Solrey Soprano Camille Poul Bass Mikhail Timoshenko Narrator Sava Lolov Ensemble United Instruments of Lucilin Vocal Coaching – Associate Music Direction Emmanuel Olivier Stage and Lighting Design Éric Soyer Costume Design Pierpaolo Piccioli Artistic Collaboration Charles Chemin Collaboration to Movements Mélanie Lomoff Production Les Théâtres de la Ville de Luxembourg Coproduction Galilea Music; United Instruments of Lucilin; C.I.C.T. - Théâtre des Bouffes du Nord In association with EDM Productions

February/March 2019 Reporting on the community

FEATURES

Analysis of business, the economy and politics

8

Interview

BROADENING HORIZONS Sam Tanson talks about her priorities as the new culture minister and what culture gives back to Luxembourg

9 IDENTITY ON ONE’S SLEEVE

82

11

On stage

WHERE HORSES ARE ZEN MASTERS

ATHLETES AIM FOR GREATER INCLUSION

14 POLES AND LUX PASSPORTS

16 In my suitcase

THE ZEST OF LIFE What Roxane Rajabali brought when she moved here

SINGER-SONGWRITERS AND PUNK FAVES

30

Get the picture

ARE THEY TAXED ENOUGH? A proposed pan-European digital turnover tax remains attractive to many voters and politicians. Firms in Luxembourg could be affected by how the debate plays out. So, are the tech titans paying their fair share?

XIN NIAN KUAI LE! To mark Chinese new year, here’s a look at the economic links between China and Luxembourg

HOW TO TALK YOUR WAY INTO A COUNTRY

Snapshots

NEW YEAR’S AND AWARDS Highlights from Amcham, British chamber, Delano, Russian club and more events

60 Asset management & compliance

INTERNATIONAL FOCUS ON AML

BURNOUT Do you know the signs? Do you know what steps to take?

46 Reportage

SWEET RECIPE

22

86

40

42

Think local

58

Cover story

SEXUAL VIOLENCE Grand Duchess Maria Teresa to host forum featuring Nobel prize winners

18

A guide to culture and lifestyle

78

WHAT BENELUXA IS BARGAINING FOR

12

THE SOURCE

62 WHAT NEXT FOR THE PRIIPS KID?

64 WATCHING THE WATCHERS

70 Interview

“IT’S ALL ABOUT THE TALENT” Manuela Fröhlich on Fondsfrauen, an outfit supporting women in the funds industry

52 Technology

DIGITAL TRANSFORMATION Behind the latest business buzzword

74 In focus

DIFFERENT VIEW OF MEDIA

Travel

QUICK GETAWAYS 12 destinations for long and short weekend trips

92 Restaurant review

LES COPAINS D’ABORD

94 Kids page

ENCOURAGING YOUNG AUDIENCES

98 Auntie Eleanor

FREE RIDES Our advice columnist weighs in on mobility

Contents

THE JOURNAL

5

TOWER ALE N OW O N S S PARTM E NT A + S IO D STU MS 1, 2, 3 ROO

BELVAL

AV. DU ROCK’N’ROLL

beckimmo.lu - 26 38 33 33 - 1

...and more

7

More Delano

02/04

PUBLISHER

Write to PO Box 728 L-2017 Luxembourg Offices 10 rue des Gaulois, Luxembourg-Bonnevoie ISSN 2220-5535 Web www.maisonmoderne.com Founder and chairman Mike Koedinger CEO Richard Karacian Administrative and financial director Etienne Velasti CONTENTS Phone (+352) 20 70 70-150 Fax (+352) 29 66 19 E-mail news@delano.lu Publisher Richard Karacian Editorial director Matthieu Croissandeau Editor-in-chief Duncan Roberts (duncan.roberts@maisonmoderne.com) Desk editor Aaron Grunwald (aaron.grunwald@maisonmoderne.com) Journalists Jess Bauldry (jessica.bauldry@maisonmoderne.com) Natalie Gerhardstein (natalie.gerhardstein@maisonmoderne.com) Contributors Esther Bechtold, Stephen Evans, Sarita Rao, Tonya Stoneman Photography Nader Ghavami, Jan Hanrion, Lala La Photo, Patricia Pitsch, Mike Zenari, Matic Zorman Proofreading Pauline Berg, Lisa Cacciatore, Sarah Lambolez, Elena Sebastiani DESIGN Phone (+352) 20 70 70-200 Fax (+352) 27 62 12 62-84 E-mail agency@maisonmoderne.com Agency director Mathieu Mathelin Head of production Stéphanie Poras-Schwickerath Creative director Jeremy Leslie Head of art direction Vinzenz Hölzl Art director José Carsí Layout Tae Eun Kim (coordination), Julie Kotulski ADVERTISING Phone (+352) 20 70 70-300 Fax (+352) 26 29 66 20 E-mail regie@maisonmoderne.com Partner-director, advertising sales Francis Gasparotto (francis.gasparotto@maisonmoderne.com) Sales manager Luciana Restivo (luciana.restivo@maisonmoderne.com) SUBSCRIPTIONS For subscriptions, please visit www.delano.lu Luxembourg (shipping included) 1 year / 7 issues / 25 euros Europe (shipping included) 1 year / 7 issues / 31 euros Printed by Imprimerie Centrale Distribution by Valora Services Luxembourg

In accordance with article 66 of the law of 08.06.2004 on the freedom of expression in the media: the company that publishes Delano is indirectly held, by a stake exceeding 25%, by Mike Koedinger, an independent editor registered in Luxembourg.

Richard Karacian is chartered with daily management.

Delano™ and Maison Moderne™ are trademarks used under licence by MM Publishing and Media S.A. © MM Publishing and Media S.A. (Luxembourg) NOTE TO OUR READERS Delano’s next print edition comes out 3 April.

For daily news updates, commentary and our weekly what’s on guide, visit www.delano.lu.

DELANO LIVE Each edition of Delano Live features live onstage interviews with people and topics covered by Delano magazine, but with a fresh perspective. That’s followed by an open bar and a bit of networking.

2 April, 18:30 Knokke Out, Rives de Clausen

club.paperjam.lu

REMEMBERING AUDREY DAVIS We’re saddened to report that Audrey Davis, a former Delano intern, died on 26 December 2018 in her hometown of Hicksville in the US state of Ohio. She died of natural causes, although the exact medical condition has not been determined.

Audrey studied journalism and history at Miami University, including a semester at the Mudec campus in Differdange.

That’s how we met Audrey.

She was intern during the spring and summer of 2017, although we wish she could have stayed longer. Audrey amazed us both as a person and as a professional. She was set to graduate this summer.

Audrey was 22.

†

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The Journal Reporting on the community

FEBRUARY/MARCH 2019

Anne Calteux of the health ministry says initiative is reducing prices of rare drugs

What the Beneluxa group is bargaining for Luxembourg and four other European countries, the latest being Ireland, have

clubbed together to try bringing down the price of recently approved and scarce pharmaceuticals. The Beneluxa initiative aims to make new treatments and so-called orphan drugs available at an affordable price to patients in participating countries. Orphan drugs are treatments for rare diseases which are difficult to acquire or extremely expensive because the lack of a profitable market discourages companies to invest in them.

The group was started by the Belgian and Dutch health ministers in 2015. They

were joined by Luxembourg in 2015 and Austria in 2016. Ireland joined in June 2018.

Anne Calteux, senior policy advisor at the ministry of health in Luxembourg, told Delano in December that “the accent put by the initiative on rare diseases convinced Luxembourg to join this project”.

As a coalition of countries, Beneluxa has more leverage in price negotiations with pharmaceutical companies and can demand more transparency into how the costs of new drugs are set. Working together by sharing data and policies also improves the price transparency between

the countries, which ideally allows relatively unified prices and policies for patients.

The initiative also conducts joint health technology assessments and participates in “horizon scanning”. That is the practice of detecting new and groundbreaking treatments before they reach the market by analysing data and research output. This allows countries to make informed decisions for their reimbursement policies. It further allows national authorities to “better react to possible impacts on health budgets,” said Calteux.

To render this process more effective,

the outfit is setting up a permanent

9

Public transport

François Bausch The Green party infrastructure minister during the press conference to unveil Luxembourg’s programme to make nearly all public transport in the country free.

system called International Horizon Scanning Initiative. This project is not limited to participating countries, but will be available to any country wishing to join.

Spinraza

Beneluxa’s first, and up till now only, major achievement is the successful price negotiation in 2018 with the pharma company Biogen for the orphan drug Spinraza, which is used to treat a special type of spinal muscular atrophy. Belgium and the Netherlands will reimburse the medication until at least 2020. According to the APM news service, after months of bargaining Beneluxa was able to reduce the initial list price for the drug of €83,000 per injection to a more reasonable amount, although the exact figure was not disclosed (six injections are needed the first year and three per subsequent year).

There are critical voices doubting the real impact of the initiative due to possible confidentiality issues and companies’ unwillingness to relent their country-specific pricing strategies, demonstrated by for example the failed agreement on the drug Orkambi. Yet, among member countries, optimism prevails. Belgian health minister Maggie De Block stated last summer: “The more patients we represent, the more our voices will be heard when discussing × high-cost innovative medicines.”

Raluca Caranfil has over 40 Romanian blouses in her collection

Identity on one’s sleeve

www.beneluxa.org

Romanian blouses were once a feature of everyday life in Romania until communism

WORDS PHOTO

Esther Bechtold Mike Zenari

stamped out the tradition. Romanian journalist and Arlon resident Raluca Caranfil is part of a growing movement of women bringing the blouse back.

“I used to wear Romanian blouses because they were trendy,” she recalls, saying she would buy commercial blouses from chain stores when she lived in Dublin. That was until she learned there was more to this fashion. “Some people collect stamps, I collect Romanian blouses. Today I have over 40,” Caranfil says,

showing off her favourites, some of which are over 70 years old.

“In the beginning, I thought they were lost. They only belonged in museums or private collections.” But then she found people in Romania willing to sell authentic blouses that had survived the communist era and been passed down through the generations.

“Each one has a story for me,” Caranfil says as she points at the intricate embroidery on the front and sleeves. “Each sign embroidered on the blouse tells a story

about what the woman wanted and

The Journal

“I see it more as icing on the cake, which is made up of other ingredients: quality of infrastructure, coherent offer.”

Dichisuri.ro

WORDS PHOTO

Jess Bauldry Matic Zorman

In numbers

Facts & figures about Luxembourg

€477m

1,200

HOUSEHOLD SPENDING

LUXEMBOURG

ON ALCOHOL

STUDENTS IN UK

Luxembourg households spent about

Roughly 60% of the 2,000

2.5% of their budgets on alcohol--

Luxembourg nationals currently

or €800 per person--in 2017.

living in Britain are students.

8.9 days

145

LENGTH OF STAY

FOREIGN WOMEN

IN HOSPITAL

CANDIDATES

Luxembourg patients had the 5th-longest

More than half of the 270 foreign

average hospital stays out of

nationals who stood in the 2017

25 EU countries in 2016.

local elections were women.

Sources Eurostat Chamber of Deputies Eurostat Centre d’études et de formation interculturelles et sociales

FEBRUARY/MARCH 2019

her past.” Diamond shapes, in red, signify fertility and were hand-stitched to a bridal blouse. On an older woman, they would be stitched in black and signify a desire for security in her old age. Other symbols were specific to different regions in Romania and neighbouring countries. Children, she explained, would be dressed in red blouses, a colour which was believed to ward off evil. As women came of marrying age, their blouse would be decorated in a vibrant red thread, a colour which would become darker for an older wearer. Women would have three types of blouses: one for their wedding or other ceremonies, one for church and a simple one for working in. Few remain of the latter, because they were worn so often.

That is one of the reasons why Caranfil decided to make her own. “These working blouses were lost because ethnographers weren’t interested in pursuing them--they were like T-shirts to them,” she explained.

“One woman managed to find out enough information about them and recreate one.”

Using this as a template, Caranfil made her own work blouse out of hemp, embroidering carnations onto it in a nod to her family name, which means “carnation” in Turkish.

“It starts a conversation. People look at you a certain way when you say you’re Romanian. That never happens when I’m wearing a Romanian blouse.” The blouse, she says, conveys the message that “I’m worth making something beautiful for.”

Back in Romania, hundreds of thousands of women have joined the movement, led by Facebook pages like “Semne Cusute” (sewn signs), where people share patterns and advice. In Luxembourg, it is gaining momentum too, thanks in large part to Caranfil and her friends, who organise the Day of the Romanian blouse on 24 June, exhibitions and conferences. “My aim is for every Romanian woman in Luxembourg to know what a Romanian blouse looks like,” she explains. And, the blouse is not just about cultural roots--it also carries a message for people across Europe. She explains on the one hand, the Romanian blouse emphasises cultural differences--through the different embroidered symbols which vary by region.

On the other hand, Caranfil’s research of ethnic costumes across Europe shows huge similarities between cultural dress. “At some point, we were all united, we had working costumes and celebration costumes,” she says. She hopes to highlight these ideas in an exhibition of ethnic costumes from the Luxembourg Moselle region. Experts on the subject are urged to get in touch. ×

In context

Terror simulation, 12 January

An actor poses as an attacker inside the Rockhal, in Belval, during an exercise for emergency response teams.

Photo Luxembourg Police

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The Journal

Kylie Morrison, an equine coach, says horse riding can be therapeutic

Where horses are zen masters Can horses help you live in the moment?

Animal psychotherapy to cope with past traumas or deal with disabilities has been long established, but two women in Luxembourg are harnessing the power of horses as mindfulness teachers.

Australian horsewoman Kylie Morrison grew up with horses at her cousin’s farm in Victoria. As a teenager she was competent at dressage, jumping and cross-country, and in adulthood she ran an equestrian smallholding near Melbourne with dreams of breeding and

training New Forest ponies. It was only when she arrived in Luxembourg that she made the connection that horses were powerful teachers that could help people to overcome personal growth issues.

Together with UK native Kate Ensor, she founded Herd, which stands for Human Equine Realised Development. It offers a blend of horsemanship, equine facilitated learning (EFL), mindfulness and coaching.

“Horsemanship is not just about riding.

Building respect and connections from the ground up helps our clients to master

their energy and form a partnership with these powerful, independent creatures.

It’s a great way to build self-esteem and self-belief, and for children it helps with managing attention and emotions, and developing gross and fine motor control,” says Morrison.

“Horses live in a herd so they’re tuned into the energy and emotions of others around them. They help us identify when we’re not fully self-aware and if we’re agitated, they’ll react to it,” explains

Morrison, adding that horses also

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FEBRUARY/MARCH 2019

have different personalities, and Herd has big-hearted Shetland ponies, a thoroughbred, a gentle German riding pony, and a strong Anglo-Arab gelding.

Clients begin by learning body awareness tools which they apply when they meet the horses and ponies. “Most clients choose a horse they feel comfortable with,” explains Ensor. “EFL is not a therapy, but it can be therapeutic. We teach our clients to build respect from the ground up, working with horses through lunging and in freedom [with no collar or bridle], to help them master their intention and energy. Horses have slower biorhythms. This means spending time with a calm horse can support us in calming ourselves.”

Morrison sees horses as inherently social, with skilful ways to communicate through body language, movements and energy. She explains that whilst Herd horses “are domesticated horses, not wild Brumbies from the high plains of Victoria, we consider their herd roles and behaviours for different activities. For some clients, size can be unsettling, so we have different sized horses and ponies. The aim is for clients to learn how to just be, recognise what is intuitive and do what they feel is present for them in the moment.”

The duo runs a number of programmes from regular lessons incorporating classical horsemanship with EFL to one-off sessions, including the successful “Hygge with horses” workshop. This year Herd has launched discovery sessions, an introduction to mindfulness, and one-day workshops entitled “Be your purpose” and “Be yourself” designed to help people be the best version of themselves. All workshops and lessons include basic training in horse safety and psychology and are open to anyone, regardless of their horse riding experience.

Morrison says: “Horses don’t wear masks and they are not judgemental.

What you see and feel from the horse is what you get. Our horse programmes take a holistic approach and consider the emotional, mental and physical way our clients develop a relationship with a horse using activities that create trust, confi× dence and connection.”

www.herd.lu

WORDS PHOTO

Sarita Rao Mike Zenari

Tom Habscheid and Katrin Kohl have Paralympian ambitions

Athletes aim for greater inclusion Para-athletes and coaches think the grand duchy could up its game.

The Luxembourg Paralympic Committee got started in 1973 with the aim of allowing people with physical disabilities to train and compete in Olympic sports.

In an interview in December, Marc Schneider, chairman of the committee, outlined his wish for the improved integration of parasports into Luxembourg’s wider sporting world.

“I want official recognition of the LPC from the [sports] ministry and the Luxembourg Olympic and Sports Committee [COSL]. We receive government support, but it is limited and progress is slow, but we are hopeful that things will change for the better with the new sports minister,” Schneider said.

One of Luxembourg’s most successful para-athletes is Tom Habscheid. He is a

world leader in his category for discus throwing and shot put and made it to seventh place for shot put in the Paralympic Games in Rio in 2016. Despite working full time at the National Audiovisual Centre (CNA) and being the father of two small boys, Habscheid trains every day of the week to be in the best possible shape for the Summer Paralympic Games in Tokyo in 2020. In an interview Habscheid revealed his ambition: “I want to be the first Luxembourgish athlete to win a Paralympic medal. In fact, I want to be the next Josy Barthel,” Luxembourg’s only Olympic gold medallist.

Because of his proximal femoral focal deficiency, the weight of Habscheid’s discus and shot is slightly below the general athletics standard. At meetings sanctioned by the Luxembourg Athletics Federation

(FLA), he cannot compete with the

International Baybees Riding Center > We specialise in teaching horse riding and pony care to all children from the age of 2 and older. > Half-term and school holiday activities also offered... events such as Sleepover Camps, Pony Fun Days and Pony Camp Days. > Teaching by qualified staff. www.baybeesridingschool.com

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FEBRUARY/MARCH 2019

adapted weight. His coach Fern Heintz explained that in many countries disabled and senior athletes are allowed to participate with adjusted equipment, but FLA regulations are lagging behind in that regard. As it is, Habscheid has to travel abroad for most of his competitions.

Habscheid argued that the status of parasports would be greatly helped by a higher number of athletes. “More paraathletes would mean more competition results, more exposure and subsequently more funding,” he reasoned. “Plus,” he said, “playing sports is particularly beneficial if you’re a disabled person since it increases your living comfort, physical resilience and connection to your body.”

Heintz stated that there is no problem in terms of inclusion of para-athletes into individual clubs. “What preoccupies me is whether the COSL will grant Habscheid the status of an elite athlete and allow him to train under the same conditions and benefit from the same advantages.” He hopes that Habscheid might be included in the recently opened Luxembourg Institute for High Performance in Sports that offers physiotherapy and performance diagnostics.

Katrin Kohl, who has spina bifida, is Luxembourg’s only wheelchair racer. She currently studies integrative social sciences in Kaiserslautern, Germany, and trains twice a week in Saarbrücken. Kohl started racing two years ago and has participated in three competitions so far, all of them abroad. She told Delano that the reason why so few people with physical disabilities are joining the LPC is that “there is too little publicity for and press coverage of parasports in Luxembourg.” She hopes that in the future, more disabled people recognise the benefits of doing sports. “A way in which sports have helped me is that I meet many people who are worse off than me who make the best of their situation, that’s very inspiring.”

While Habscheid, Heintz and Kohl are optimistic that full inclusion of parasports in Luxembourg is a matter of time, on an international level, it is still a work in progress. In Rio, in 2016, Olympic contestants received $25,000 for a gold medal, whereas Paralympians only received $5,000 for × the same achievement.

www.paralympics.lu

WORDS PHOTO

Esther Bechtold Mike Zenari

Zuzanna Karas, a native of Poland, has applied for Luxembourg nationality

Poles and Lux passports Zuzanna Karas was looking forward to two things last year--the birth of her first

child and receiving her Luxembourg passport. For the Polish lawyer the two are closely interlinked--becoming a Luxembourger will be the feature that unites her, her Italian partner and daughter, Julia. But the actions of the ruling rightwing populist party Law and Justice (PiS) and stand-offs with the European Commission lend the Luxembourg nationality another meaning--particularly if Poland leaves the EU. “We laugh that Poland will more likely be kicked out [of the EU] than have an exit,” Karas tells Delano. While she admits she doesn’t think it will happen, Karas is nevertheless concerned about the changes she has seen in her native Poland since the PiS came to power in 2015. Among them are its undermining of the judi-

cial system by forcing judges into early retirement, over which the European Commission referred Poland to the European Court of Justice in September 2018.

President Andrzej Duda justified the move by saying: “We have a situation where some elitist judges consider themselves to be above Polish law just because they do not like it.” He, however, conceded and amended the law in December. At the same time, some PiS policies, such as on child benefits, remain popular. And certainly not all Poles in Luxembourg express concern about their homeland. But Karas expresses frustration: “It makes me angry and sad at the same time because instead of moving in a more open direction, Poland is closing on Europe.”

Polish nationals recorded below average trust levels in Europe at 47% according to a November 2018 Eurobarometer survey.

Fact file

Useful and random information about Luxembourg

Part of the Amazon TV series “Patriot”, a spy thriller, takes place in Luxembourg.

Those scenes are shot in Prague.

Source: IMDB

Grand Duke Henri and Grand Duchess Maria Teresa don’t live in the Grand Ducal Palace.

It’s their office. The royal family lives in Colmar-Berg.

Source: Luxembourg City Tourist Office

WORDS PHOTO

Jess Bauldry & Esther Bechtold Jan Hanrion/Maison Moderne

15

The world’s first fully functioning lead-acid battery was developed in Luxembourg, in 1886, by Henri Tudor.

He died in 1928, of lead poisoning.

Source: Tudor Museum

The Journal

And, judging by recent regional elections, PiS continues to garner support, helped by a polarised media landscape which, according to media watchdog Freedom House, “has become a crucial battleground in the drive by authority-minded leaders to gain control over political discourse and limit media pluralism”.

Justyna (who did not want her family name published) initially applied for Luxembourg nationality for travel reasons.

But she says it will also be her plan B if Poland and the EU part company.

She observed during a recent trip home to Poland: “The way they were presenting news on public TV was shocking […] it was very judgemental, not objective at all.” With a stranglehold on public media, the government has pushed through controversial laws and reforms.

“I feel the PiS woke up the worst demons of the Polish nation,” Miroslaw Tyc says, reeling off a list of the reasons as to why he quit Poland for Luxembourg just over a year ago and plans to apply for Luxembourg nationality. Tyc says that it was only possible for he and his husband to marry abroad because same sex marriage isn’t recognised in Poland. When they are back home, he is frightened to even hold hands in public with him. Tyc warns too that women’s rights are also compromised: “Extremists are publicly shaming women who abort. Women are totally treated as objects, which leaves me speechless.” And, when trans people want to officially change their gender, they have to sue their own parents for making a mistake in determining gender at birth, he explains.

One reassuring outcome of the PiS changes is that young people who oppose PiS are becoming more vocal. “Ten years ago, we would never talk about politics […] Now people talk about it, they go to protests,” says Justyna. In a country where voter turnout has traditionally been low, it could bring the ballots needed for change at the November 2019 parliamentary elections. Karas says: “The tragedy isn’t what’s happening now but the fact it will × have implications for years to come.”

In my suitcase

16

Expats share what they brought when they moved to Luxembourg Madagascan

FEBRUARY/MARCH 2019

The zest of life WORDS PHOTOS

Aaron Grunwald Jan Hanrion/Maison Moderne

ROXANE RAJABALI

Madagascan spices Rajabali has a special personal stash of spices from Madagascar.

Marshall speaker Rajabali’s husband bought this speaker in France, originally for himself.

But now she uses it to get her day started with music.

Meet the owner of The Spice Collection, which imports highquality spices from eight countries and sells them online and in several Luxembourg shops. Roxane Rajabali is a French national who spent her first 18 years in Madagascar with her Indian parents. “I feel Madagascan,” she says, but also a bit multinational. “That’s why I love this country.” Rajabali worked in the hotel sector in Paris, and briefly in Japan, before moving to Luxembourg in 2016 with her husband. After having their daughter, who’s now 2½, Rajabali took up cooking. But she was disappointed by the spices she found in the supermarket, which didn’t have the same pure taste that she remembered from childhood.

Thus The Spice Collection was born in October 2018.

www.thespicecollection.com

White bike Her husband bought this bike when they arrived in Luxembourg. “But we came in January and it was so cold that I didn’t use it,” says Rajabali. A few months later, she finally went for a spin and became a fan of cycling in the grand duchy.

“You see Luxembourg in a completely different light on a bike.”

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The Journal

Little rabbit Rajabali bought this knitted rabbit in Turkey and it quickly became her daughter’s favourite cuddly toy. It was made by a group that supports women in difficulty. “I liked the initiative,” she says.

Plus the material is easy to keep clean. But most importantly, “my daughter loves it.”

Aloe vera plant “My mother bought it for me. She always told me to keep green plants in my home,” because they naturally purify the air.

“I miss her a lot because she lives in Madagascar, so the plant reminds me of her.”

Namaskar bookshelf She uses this Indian-style bookshelf as a showcase for her favourite books, magazines and decorative objects. “It’s sombre and exotic at the same time, like me,” she says with a wink.

WHAT I REGRET LEAVING BEHIND Eiffel Tower Rajabali lived near the landmark, so the tower was truly part of her life in Paris. “Day or night, rain or shine, it was so beautiful!” Rajabali says that every time she saw the tower lit up at night, it was as “fascinating” as the first time.

Think Local

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Expats who have truly integrated into local life

Prince Motiani/Indian

FEBRUARY/MARCH 2019

How to talk your way into a country A

PUBLIC SPEAKING There are seven social Toastmasters Clubs in Luxembourg and the greater region, each with unique characteristics: Bossuet Gaveliers, Casemates, Green Heart, Les Orateurs du Jeudi (in French), Pitch Craft 4 Entrepreneurs (PC4E), Saber Toastmasters (at Spangdahlem air force base in Germany) and Toastmasters op Lëtzebuergesch (in Luxembourgish). Search for them on Facebook or LinkedIn.

“Luxembourgers want to live like the French and think like the Germans.”

ccording to Prince Motiani, a smart way to assimilate into Luxembourg culture and connect with people is through local programmes. 13 years ago, he discovered a Toastmasters chapter that meets twice a month to help people with public speaking. He has benefitted greatly from the social club and witnessed its positive impact on his peers. Today he works in a leadership role to share his experience with others. “Spring in Luxembourg, for me, is going to our meetings and seeing the people there blossoming.”

Prince arrived in the grand duchy just over 30 years ago. He left India when he was 18 to study comparative literature in France. It was Victor Hugo that led him to Luxembourg (the writer once lived in Vianden) and his love of the locals that made him stay. “Luxembourgers want to live like the French and think like the Germans,” he says. “Once you get your mind around that, you can understand the Luxembourgish spirit.”

For Prince, integrating into Luxembourg society was facilitated by the ease of living and the straightforward nature of the country’s civil services. “Life in Luxembourg is not all that complicated,” he says. “You can see through the system, as opposed to other bureaucratic machinery.”

Over the years he has grown to appreciate the Luxembourg way of life and the European mindset. A big part of that can be attributed to the relationships he’s established with locals--something he highly recommends to newcomers.

“My advice is: be patient and socialise with the locals,” he says. “Join the clubs and go to the cafés where they hang out.

Luxembourgish people are really very open once you get to know them.

It’s a small country and the people here are sometimes threatened by the huge influx of foreigners. But once they feel safe around you, they give you the × warmest embrace you can have.”

WORDS PHOTO

Tonya Stoneman Matic Zorman

plan K

WWW.SPRINGBREAK.LU

BRAND VOICE

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Property

FEBRUARY/MARCH 2019

A brokerage service to find the loan that’s right for you In March 2018, atHomeGroup launched atHomeFinance, a free service that helps future property buyers easily find a bank loan. Instructions for use. presented by

tHomeFinance offers expert mortgage negotiation. Its objective is to find the best solutions for clients while saving them time. Users are put in contact with a mortgage loan specialist who advises them and negotiates with banks on their behalf. Ten bank consultations are offered to customers in one single appointment.

Two industry specialists join forces

In order to broaden its scope and benefit from the valuable knowledge of another industry specialist, atHomeGroup has bought Crédit Expert Luxembourg, the local leader in property finance brokerage and consulting, active in the Grand Duchy since 2012.

The atHomeFinance brand was created as a true extension of services offered by atHome.lu. There is a physical branch in the City of Luxembourg, whose doors are open to all users wishing to know more about × mortgage brokerage services.

I visit the atHomeFinance website Do you have a property project?

Have contracts already been exchanged, or have you only just begun your search?

You can make an appointment with a mortgage specialist at athome.lu/finance. Within a very short period of time, you’ll get a response in order to arrange an appointment, during which we can assess and understand your situation and needs.

Free service

€

1

2 atHomeFinance offers me an in-person appointment Next, you will meet your broker in order to review your project and discuss the financing that best suits your current and future needs.

Save time

Photo → atHomeGroup Illustration → Eva Pontini (Maison Moderne)

A

atHomeGroup

BRAND VOICE Launch of atHomeFinance

“ SUPPORTING CLIENTS THROUGHOUT THEIR ENTIRE PROPERTY PROJECT”

Once the financing is approved, the rest is up to the broker!

He or she will negotiate with each banking institution to obtain the best terms possible for your project. In general, it takes seven days to get an offer.

Loans at the best rates

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4 atHomeFinance presents me with the selected offers Lastly, the broker presents you with the offers from various banks. It will then be up to you to choose the one that’s best. Once the choice has been made, the specialist will accompany you to your appointments, from your first meeting with the banker to the signing of the bill of sale at the notary’s office.

What is your outlook for five years down the road? yann gadea We hope to educate the market on using a mortgage brokerage service. Clients should be made aware of the added value that such a service can bring so that using one will become automatic. Our objective is therefore to grow our market share and perhaps even open atHomeFinance agencies in other locations around the country, in order to offer the best service to our clients and simplify their property projects.

To find the loan that’s right for you, visit athome.lu/en/finance or send an email to contact@athomefinance.lu

Support from A to Z

Soufiane Saadi Group Operations Director atHomeGroup

Yann Gadea Branch Manager atHomeFinance

Property

Why launch atHomeFinance? soufiane saadi Purchasing a property is one of the most important decisions we make in our life.

The majority of people wish to be supported and guided throughout their search for an apartment or a house, but also when looking for a mortgage. Luxembourg remains a traditional market, but the country has unique characteristics with a growing population and high number of expatriates.

Buying a property implies generally financing it through a loan, and our mission as the leader in property search is to help and support our users in their property project from finding their home to financing it, making this experience as stress free as possible.

The broker negotiates on my behalf with banking institutions

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Snapshots

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Highlights from international community and networking events

Russian charity ball

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Luxembourg’s Russian community FEBRUARY/MARCH 2019

and friends came together to support children’s charities, and highlight Russian culture, during a formal gala, 19 January. Proceeds went to SOS Children’s Villages and the Podsolnuh Foundation, which

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provides medicines for children with immunodeficiency disorders.

www.ball.russki.lu

WORDS PHOTOS 4

Esther Bechtold Matic Zorman 1 Finola, Steven, Ina and Max 2 Elanor Rachmaninoff, Gilles Pellegrin, Aicha Bogaert and Aniela Bettel 3 Diana and Misha 4 Étienne Schneider, Luxembourg’s deputy prime minister, and Jérôme Domange, his husband 5 Ballet dancers Svetlana Noskova and Ivan Negrobov 6 Oksana Pakhomova and Elena Berkovich

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Find more events Check Delano’s digital agenda for the latest happenings:

www.delano.lu/agenda

1 Rune Wangsmo and Atte Suominen 2 Ioana Slobodnicu and Bettina Johnsen 3 Ara City Radio’s Lisa McLean, the Pirate Party’s Sven Clement, PwC’s Mary Carey and RTL’s François Aulner speak on the panel 4 Thérèse Collins and Stefan Glober

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Naughty or nice?

Four lively panellists reflected the past year and shared their expectations for the next

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www.delano.lu

PHOTOS 4

Cricket legend

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Matthew Hoggard, one of England’s all-time top ten test wicket-takers, spoke at the Optimists Cricket Club awards dinner, 19 January. www.optimists.cc

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PHOTOS 1

Lala La Photo Geranda and Hans de Zwart Divya, Vikram, Shraddha and Ankip 3 Mike West, Matthew Hoggard and Sarah Hoggard 4 Joe Lister buying tombola tickets from Hannah Whiteman. OCC raised more than €3,500 for the Tricentenaire centre for handicapped people in Walferdange 1

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Maison Moderne

The Journal

on the high- and lowlights of

12 months, 11 December 2018.

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Celebrating new year

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British ambassador John Marshall hosted the British Chamber of Commerce for Luxembourg’s traditional new year’s reception, 9 January.

FEBRUARY/MARCH 2019

www.bcc.lu

WORDS PHOTOS

1 Iris Straube and Joanna Denton 2 Christian Barkel, Arjan Kirthi Singha, Sandro Pace-Bonello and Andrew Knight 3 Jacek Berenson, Linda Aliouat and Steven Cooney 4 John Marshall said people would be disappointed if he didn’t say anything about Brexit

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Duncan Roberts Matic Zorman

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Icy reception Docler Holding, a digital media firm based in Kirchberg, created an “Ice Kingdom” for its annual holiday party, 13 December 2018.

www.doclerholding.com

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PHOTOS

Shigeji Suzuki, the Japanese ambassador to Luxembourg, and his wife, Eriko, inside the photo booth 2 Marco Selvaggi and Roby Langers 3 Sven Clement, the Pirate Party leader, and Kamel Amroune 4 Viktor Huszár and Gábor Borsányi 1

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Docler Holding

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Air of optimism

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Luxembourg finance minister Pierre Randy Evans struck positive notes at Amcham’s annual festive luncheon, 12 December 2018. ‚

www.amcham.lu

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WORDS PHOTOS 1 Michiel Boeren and Jan Neugebauer 2 Natalia Durus and Michael Mandic 3 Daniel Reinert, Marc Klein and Sinan Sar 4 Fabien Hautier, Andi Cernat and Ioan Sabau 5 Ruveyda Senturk and Aliya Moldakhanova 6 Pierre Gramegna and Randy Evans

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Duncan Roberts Matic Zorman

The Journal

Gramegna and US ambassador

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Brexit, but...

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The British ambassador acknowledged the “uncertainty” that remains over Brexit, but highlighted long-standing Luxembourg-UK links during the British Chamber of Commerce’s annual Christmas luncheon, FEBRUARY/MARCH 2019

14 December 2018.

www.bcc.lu

WORDS PHOTOS 2

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Aaron Grunwald Mike Zenari 3

1 Joanna Denton, chair of the British Chamber of Commerce for Luxembourg 2 Catharina Biver 3 Clément Hengy and Raluca Carp 4 John Marshall, the British ambassador to Luxembourg 5 Jimmy Tong Sam and Liene Ozolina 6 Charlotte Wallace, Aline Bidaine and Angela Taylor inside the Delano photo booth

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Polish fintech

Young adults & money

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Three Polish fintech firms were

Millennials are redefining the meaning of luxury, investing

recognised at a Luxembourg-

and work, Pascal Monfort said during a Paperjam Club talk.

Poland Chamber of Commerce

club.paperjam.lu

The Journal

conference, 13 December 2018.

www.lpcc.lu 1

Pascal Monfort Robert Goeres, Louis Loschetter and Laurent Loschetter 3 Vanessa Defournier, Sabina Guerrero and Corinne Migueres 1

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WORDS PHOTOS 2

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Jess Bauldry Lala La Photo 1 Diana Diels and Barbara Nowakowska 2 Pia Libicka-Regulska and Katarzyna Stanczew 3 Lukasz Dziekan, Krzysztof Gogol and Monika Kania 4 Krzysztof Gogol, CEO of WealthArc, which took first place in the competition 5 Piotr Wojtczak, Poland’s ambassador to Luxembourg

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Patricia Pitsch/ Maison Moderne

PHOTOS

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4th Mind & Market Forum Zreality won the grand prize and Food4All won the “people’s choice” prize at this startup fair, 13 December 2018.

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www.mindandmarket.com 1

1 Michael Neidhöfer of Zreality and Luc Brucher of Deloitte, one of the event organisers 2 Xénia Ashby and Ilana Devillers of Food4All

PHOTOS

Matic Zorman

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Paperjam Top 100

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Norbert Becker, an independent company director, was named the most influential person in Luxembourg’s economy during the Paperjam Top 100 ceremony, FEBRUARY/MARCH 2019

19 December 2018.

www.paperjam.lu

PHOTOS 4

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Maison Moderne 5

Norbert Becker Alain Kinsch of the consultancy EY and Caroline Mart of RTL placed second and third, respectively, on the influencers list 3 Claudine Bettendroffer and Márton Fülöp 4 Nasir Zubairi and Olivier Portenseigne 5 Françoise Thoma, Martine Kerschenmeyer, Anne-Catherine Ries and Tine A. Larsen 6 John Parkhouse interviewed on stage 1

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1 Severine Lambert, Arnaud Ferro and Valerie Degrez 2 Kamila Grant, Audrey Dehoux and Stephane Campori 3 New office space 4 Dominique Robyns of Alter Domus

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New digs The fund services firm Alter Domus inaugurated its new headquarters in Cloche d’Or, 17 January. www.alterdomus.com

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PHOTOS 4

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The Fondation de Luxembourg, which promotes philanthropy in the grand duchy, marked its 10th anniversary, 22 January.

www.fdlux.lu

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PHOTOS 1

Nader Ghavami 1 Lea Sinner and Angela Garzotto 2 Martine Solovieff and Félix Braz, the justice minister 3 Sigrun Eggen Fredriksson and Espen Raakil 4 Tonika Hirdman, head of the foundation, and Pierre Gramegna, the finance minister

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Matic Zorman

The Journal

Ten candles

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FEBRUARY/MARCH 2019

HOW TO TAX THE INTERNET?

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Cover story

EU plans for a pan-European digital sales tax have stalled, but the idea still remains attractive to many voters and politicians. Luxembourg is a cross-border business hub, and many of the firms based here could be affected by future plans. Where is the debate headed?

WORDS PHOTOS

Stephen Evans Mike Zenari

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FEBRUARY/MARCH 2019

W

ith public finances stretched, Europe’s governments are on the lookout for new ways to raise cash. Some think that online firms aren’t playing by the same rules as offline businesses, and that this is unfair (see box on page 37 for more on this debate). Whether it’s social networking, cloud computing, e-retailing and the rest, these new business models often don’t fit with oldstyle methods of taxing companies.

These are based on physical presence in the countries they serve. As well, competition from online retailers is blamed for many of Europe’s town centres being abandoned by shoppers. Unlike standard shops, e-retailers don’t need to pay expensive town-centre rents and local business taxes. Also, being international businesses, they often use structures that allow them to delay their tax bill.

WHAT IS FAIRNESS?

The criticism and desire to do something is strong. “The amount of profits currently going untaxed is unacceptable. We need to urgently bring our tax rules into the 21st century,” Pierre Moscovici, the European commissioner for economic and financial affairs, taxation and customs, said last spring.

This comment, typical of many, came as the European Commission launched a plan to create “a single market in which digital companies can do business and grow, while paying their fair share of taxes.” They cited figures that digital multinationals are growing five times faster than other international firms, yet pay less than half the tax. “Our pre-internet rules do not allow our member states to tax digital companies operating in Europe when they have little or no physical presence here,” Moscovici added.

Yet defenders of online services firms say they provide valuable services to clients without monetary cost, in return for being given personal data which can then be sold. That this activity often by-passes traditional methods of taxation is beside the point, they say. Also, no doubt tax plays a part in keeping retail prices low online, but mostly, it is the higher efficiency of the centralised retailing business model that achieves this. All the more so when firms can sell cross-border within the EU. Add to this the much greater choice available to online shoppers, and it is clear why some offline retailers are struggling.

As the charts on pages 35 and 38 show, effective tax rates have been falling for all businesses and at a similar rate, whether or not they are multinationals that can use multi-jurisdiction structuring. Yet despite this, the amount of corporate tax, as a share of national income, has been broadly stable since 2000, with even a slight uptick in recent years.

JUST DO SOMETHING!

Despite these arguments, there is a clamour for action, and the EU responded in March 2018 with a proposal for a pan-European digital services tax.

They sought to oblige tech firms to pay a 3% levy on gross revenues in the country where such money is sourced, rather than where the business

33

Cover story

“ €5bn might sound like a lot of money. ”

Werner Haslehner

Professor in European and international tax law University of Luxembourg

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Company turnover vs GDP

Countries

Some digital firms are bigger than national economies. Comparison of revenue and GDP for selected digital firms and countries.

Digital firms

FEBRUARY/MARCH 2019

GERMANY

UK

FRANCE

$4,029,140,000,000

$2,808,899,000,000

$2,794,696,000,000

NETHERLANDS

BELGIUM

IRELAND

APPLE

$909,887,000,000

$536,055,000,000

$366,448,000,000

$265,595,000,000

CZECH REPUBLIC

AMAZON

GREECE

GOOGLE (ALPHABET)

$244,540,000,000

$221,000,000,000

$218,057,000,000

$129,866,000,000

UKRAINE

MICROSOFT

ANGOLA

LUXEMBOURG

$126,390,000,000

$114,906,000,000

$114,504,000,000

$68,993,000,000

FACEBOOK

GHANA

NETFLIX

MALTA

$51,896,000,000

$51,815,000,000

$14,893,255,000

$14,270,000,000

ZALANDO

SPOTIFY

FIJI

$5,874,846,000

$5,704,286,000

$5,223,000,000

Revenue figures company reports.

Sales figures for October 2017 to September 2018. Spotify and Zalando report in euros; converted into US dollars using currency conversion rate on 30 September 2018.

GDP figures International Monetary Fund’s “World Economic Outlook Database October 2018”.

All companies are paying less tax

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Technology Overall average 10 multinationals with the largest offshore cash piles

Effective corporate tax rates for selected sectors, globally (%)

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Cover story

35

Source Financial Times, S&P Capital IQ

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25

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is domiciled for tax purposes. This would have been levied on three main areas of activity: the placing of advertising on a digital interface; providing a multisided digital interface which allows users to interact with other users and receive supplies of goods or services from other users; and the transmission of data collected about users and generated from users’ activities on digital interfaces.

The tax would have only applied to firms with total annual revenues of €750m or above, with annual EU taxable revenues of €50m.

Estimates say that the levy could have brought in as much as €5bn in tax revenue annually, or nearly €8bn if a 5% rate were levied.

LOTS OF PAIN, LITTLE GAIN

However, despite six different versions of the idea being drafted by the commission, it failed to get off the ground. “On many levels, this is a fundamentally bad idea,” commented Keith O’Donnell, managing partner at tax consultancy Atoz. He pointed to several technical concerns about how the tax would be implemented, but more fundamentally, it risked sparking the ire of the Americans. It’s likely that any US president and congress would have reacted badly to a move which targeted mainly American firms. But with Donald Trump calling into question the validity of global free trade, most EU leaders decided now was a particularly bad time to make this move.

“Although €5bn might sound like a lot of money, spread across the whole EU, this would do little to ease budget deficits,” noted Werner Haslehner, professor in European and international tax law at the University of Luxembourg. Indeed, it equates to around 3% of the total deficits run by the 28 member states in 2017. This is hardly enough to risk opening a new front in the global trade war. Also, many were wary about portraying the EU as being anti-business and anti-innovation. There was also the awareness that a 3% tax would have done little to arrest the declining appeal of some town centres.

MORE QUESTIONS THAN ANSWERS

Technical questions also proliferate. A fundamental principle of international tax arrangements is that companies are taxed in the countries where

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THE PUBLIC RELATIONS BATTLE Online firms are both loved and decried by the public.

We all enjoy the free online search, music streaming and social networking services that have revolutionised our lives. Online retailing gives choice and competitive prices like never before.

Yet for many, this isn’t enough. We also want these companies to do what individuals and corporations never do: make efforts to pay more tax than they should.

We complain that the data we give firms is used by these firms to sell us things. We visit high streets less frequently and we blame e-retailers.

Yet when multinational firms work offline, they are criticised too.

The likes of Starbucks and McDonald’s are ever-present in our high streets, yet their efforts to reduce their tax bills are routinely knocked.

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FEBRUARY/MARCH 2019

“ This is a fundamentally bad idea. ”

Keith O’Donnell

Managing partner Atoz

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Digital vs non-digital

How profits are made and where they are taxed.

DIGITAL ACTIVITIES

COUNTRY A

COUNTRY A

COUNTRY B

HQ

HQ

USERS

USERS

CAPITAL

CAPITAL

INTELLECTUAL PROPERTY RIGHTS

INTELLECTUAL PROPERTY RIGHTS

HQ

Cover story

TAX

NON-DIGITAL ACTIVITIES

COUNTRY B USERS

TAX

TAX ?

TAX

HQ

HQ

USERS

USERS

CAPITAL

CAPITAL

INTELLECTUAL PROPERTY RIGHTS

INTELLECTUAL PROPERTY RIGHTS

COUNTRY C

CAPITAL

TAX

COUNTRY D

value is created. So as Google and Facebook have most of their programmers in the US, thus it would seem logical that European countries should miss out on corporate taxation receipts. However, the argument is that online firms are different, in that a lot of the value generated by search engines and social media is from user data and the content they upload.

So where should the tax be collected and how should it be distributed? The company may be operating in several countries, the platform on which it advertises might be in a company in a second country, and the user may be in a third. Resolving this conundrum is tricky. The tax could also have created distortions. The measure took a sectoral approach, but it was not clear how different sectors would be defined. For example, how do cloud computing services fit into an overall IT system package? Should an online advertisement be taxed even if the user does not click on the link?

There are also economic arguments. By taxing firms that might not make a profit, could this stifle investment and innovation? These are highly competitive market segments, so what looks like a global behemoth now may not be in a five years’ time. An example was the European Commission’s battle in the 1990s against the perceived dominance of the Microsoft Internet Explorer web browser. Plus the history of complicated tax measures is clear: the more rules there are, the more creative accountants become.

PROS AND CONS

INTELLECTUAL PROPERTY RIGHTS

Support for the EU-wide digital tax petered out late last year. France and Italy were supportive of the digital services tax idea to the end, as was the Austrian presidency. Germany was initially supportive, and remained publicly sympathetic but the stumbling blocks eventually proved to be too much.

Luxembourg was in this camp. “If a provisional taxation would lead to an escalation in the relationship with the main partners, and specifically with the United States, it would obviously be counterproductive,” Pierre Gramegna, the Luxembourg finance minister (DP), told CNBC in May 2018. “I agree with 90% of suggestions made by Emmanuel Macron regarding Europe, but this one for digital taxation is problematic,” Xavier Bettel, the prime minister (DP), told the Belgian newspaper Les Échos in October.

COUNTRY C

COUNTRY D

TAX NOT THE KEY ADVANTAGE No doubt international businesses have an added advantage that they can use their cross-border structures to delay the taxes they pay. Using tax structure enables firms to avoid some tax, but mostly the cash saved is reinvested or saved for future investment. Tax payments of some form are triggered eventually, such as on earnings. Yet it is the business model of these firms that makes them able to supply the services we want at low cost. We give our data to Facebook and Google, and they make a fortune using this to help others sell us things. It’s not clear where extra tax can be extracted from these relationships. Amazon’s network of vast warehouses creates cost-efficient scale and vast choice. They also run the world’s leading cloud computing operation.

Any surplus they make is reinvested in future growth.

What should be taxed here?

Even offline, Starbucks’ dominance has more to do with their marketing power than tax avoidance.

It isn’t price competition that’s persuading people to pay €5 for a paper cup of sugary coffee.

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How much companies contribute to the treasury

3

Tax on corporate profits, % of GDP, 2000-2017

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DAMNED IF YOU DO AND DON’T Little wonder that online firms are relatively shy about voicing their opinions in this debate.

The “common sense” view that “online retailers should pay their fair share in tax” is difficult to counter in the hubbub of the fastpaced news agenda. Hence, journalistic enquiries to Amazon in Luxembourg, for example, are met with a polite request to contact the company’s trade representative organisation. Thus, rather than battle on difficult terrain and potentially make themselves a target for activists’ ire, they prefer to focus on the fundamental role of businesses: generating value for their owners by providing products and services people want to use. Similarly, Luxembourg plays a careful hand.

The country does well out of its role as an international corporate hub, but it understands that explaining this is a major public relations challenge. The government is wary of antagonising its large neighbours, and in debates at the EU level, it seeks to avoid having to veto tax harmonisation.

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Luxembourg Belgium Netherlands OECD average Ireland France Germany

Source OECD

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Then, several countries were clearly and vocally opposed, notably Denmark, Sweden, Malta and Ireland. Unanimity is required to change EU tax law. There was also a push by Moscovici to seek to encourage member states to adopt majority voting for tax matters, but this too was rebuffed.

The Irish government objected to the digital services tax for a range of reasons, including a potential loss of €160m in revenue. They calculated this mainly on the basis of a reduction in the tax base of the internet firms located in their country. Again, this might sound like a lot of money, but not when compared to the Irish Republic’s near €200bn national debt. Similarly for the grand duchy. “The positive and negative effect for the Luxembourg treasury wouldn’t have been particularly significant,” noted O’Donnell.

So even though the measure became limited to just online advertising, and was intended as a short-term measure, the 28 member states decided to await discussions ongoing at the OECD, the club of 36 developed economies. A report is due by 2020, but as the US are a member of the OECD and many other member states are sceptical, analysts think it is unlikely that they will suggest far-reaching changes.

NATIONAL SCHEMES

Undaunted, the UK and French governments have announced their intention to introduce their own national digital services taxes. Both expect the measure to raise around €500m per year. However, this would only be following a “consultation” period where the practicalities of the measure will be probed.

Given that the UK budget deficit is about 80 times this figure, it is possible that these proposals might come to nothing. At the same time, France’s finance minister, Bruno Le Maire, told a French newspaper in January that Paris hadn’t given up on an EU-wide digital tax.

“So although multinational firms don’t have votes, and appear to be an easy target, and thus a digital services tax appears politically attractive, reality is more complex,” Haslehner said. No doubt we will continue to hear a lot more about it. But whether words translate to action is another matter.

„Ech wëll méi Content, a bessere Storytelling.“ “I want more content and better storytelling.”

Serge (29)

Maison Moderne turns 25 We are listening Join the conversation on 25.maisonmoderne.com

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Grand Duchess Maria Teresa has invited Nobel laureates and other advocates for ending the use of sexual violence as a weapon in conflict zones and fragile environments to be guest speakers at an upcoming forum. She tells Delano more.

FEBRUARY/MARCH 2019

Humanities

Eye-opening forum is royal initiative INTERVIEW

WORDS

Duncan Roberts

PHOTOS

Mike Zenari

N

niques and criminal prosecution, Bardet founded her organisation after witnessing the horror of sexual violence used en masse in many countries and the lack of prosecution surrounding it.

worldwide, and that is what is frightening.

We are not only talking about war, we are talking about situations where there are guerrillas, situations in refugee camps.”

Humanitarian engagement

Grand Duchess Maria Teresa says the biggest help activists trying to push the problem into the public eye could have had was the awarding of the Nobel Peace Prize last year.

“I think it was incredible, marvellous, that Dr Mukwege and Nadia Murad were awarded the Nobel Peace Prize. It helped to bring focus on the subject, and I was very moved.

The topic was triggered about four or five years ago, and I hope that my forum is only one little milestone in many different work groups and forums and concrete actions.”

Placing survivors at the heart of the conference was very important to her and the event partners. Last November, addressing the Women’s Forum for the Economy and Society, the grand duchess spoke about her hopes for the Stand, Speak, Rise Up initiative. “We need to move from emotion to action,” she said. “I am convinced that by putting survivors at the heart of the debate, they can become actresses of change!”

She has personally met many of the survivors at events in The Hague and in Geneva with Dr Mukwege. “I have tremendous respect and enormous affection for them.

There is now a link that I cannot ignore, that engages me. And I am happy to be engaged in a topic that needs such attention and visibility. In the position that I am in, if I can help, I’ll do as much as I can. I will continue to work with Dr Mukwege and Céline Bardet and the survivors. This forum is only the beginning of an ongoing action and accompaniment.” ×

The grand duchess has long been a champion of women’s and children’s rights and has committed to social and humanitarian issues. Where did this stem from? “When I was a young girl of around 12, I started reading a lot about social engagement. Little by little, it became evident that it was what I wanted to do later on,” she says. When deciding what to study at university, she chose political sciences over law. “I thought it would give me a wider view of the geopolitical situation of the world, so that maybe I would have more tools to defend those who cannot defend themselves--it was humanitarian and nothing to do with politics. So, when I married my husband [prince, now Grand Duke Henri], I was in the privileged position of being able to do just that, what I love most.”

The conference in March will address the geopolitical factors that lead to conflicts and also seek to understand the root causes of sexual violence in fragile environments.

Education could be a key, the grand duchess agrees. “Culturally in the home as well as institutionally, we need to start with teaching little boys.” Acknowledging the extent of the problem and the fact that it has only recently started to be addressed, the grand duchess talks about her hopes for her initiative. “I hope the forum serves as an eye-opener,” she says. “This is a problem as old as history, it started already with the Greeks and Romans. But the scale is now

41

Giving survivors a voice

STAND, SPEAK, RISE UP The conference is hosted in conjunction with the Women’s Forum for the Economy and Society and with the support of the Luxembourg government.

The Dr Denis Mukwege Foundation and Céline Bardet’s We Are Not Weapons of War organisation are partners of the event.

26 and 27 March European Convention Center, Luxembourg-Kirchberg

www.standspeakriseup.lu

Humanities

obel Peace Prize winners Dr Denis Mukwege and Nadia Murad will be in Luxembourg at the end of March at the invitation of Grand Duchess Maria Teresa.

They will be among the guest speakers at the Stand, Speak, Rise Up forum that the grand duchess has organised to address the damage, isolation and stigma experienced by survivors of sexual violence in fragile environments.

Mukwege is a world-renowned gynaecological surgeon as well as the founder and medical director of Panzi Hospital in Bukavu, Democratic Republic of the Congo (pictured below, centre). He is recognised as the world’s leading expert on “repairing” the internal physical damage caused by rape. Together with his team, he treated more than 50,000 victims in east Congo. In 2018, he received the Nobel Peace Prize, together with Yazidi activist and rape survivor Nadia Murad, for his efforts to end the use of sexual violence as a weapon of war and in armed conflict.

Other speakers at the forum include Muhammad Yunus, another Nobel Peace Prize winner whom the grand duchess has known for several years in her capacity as a Unesco goodwill ambassador--they were reunited in Luxembourg in 2012, when he attended the European Microfinance Award, of which she is patron.

Also on the programme are Luxembourg prime minister Xavier Bettel and foreign minister Jean Asselborn--the forum has received solid supports from the Luxembourg government. The grand duchess has also invited international lawyer and founder of We Are Not Weapons of War, Céline Bardet (pictured below, right). Specialising in war crimes, international crime, post-conflict justice, security and in investigation tech-

42

Photo Mike Zenari

FEBRUARY/MARCH 2019

Burnout

The 21st century affliction ESSAY

When a survey finds that more than a third of working people in Luxembourg have experienced burnout, is it time for the government to take more notice? For now, the onus is on sufferers to seek support, but how do you know when you’re facing burnout?

WORDS

Sarita Rao

Lynsey Baxter, a hypnotherapist and health coach, says sleep and diet changes can help burnout sufferers

Trial period

T

he term “burnout” was first coined by the German-American psychologist Herbert Freudenberger in the 1970s as exhaustion resulting from excessive demands at work. Often it can lead to depression, but an early symptom is a loss of vitality.

“I actually didn’t notice it or rather ignored the symptoms. It’s only when depression kicked in I realised things were not right,” says one male burnout sufferer. “I was trying to juggle too many things at the same time, thinking my body could handle it. I was overworked and stressed out, and eventually my body just said ‘stop’.” He explains that he felt trapped in an unsolvable situation: “I thought if I stopped working I’d end up with no means to live. I kept pushing myself and pretending everything was all right.”

His partner forced him to visit a doctor, and he started therapy together with medication. He says it was a long process and he was ready to give up many times, particularly as unsupportive friends believed he was exaggerating or even making it up. “I went through a number of stages. I was off sick for many months and eventually I quit work. I was lost for a long time, not knowing what to do,” he says.

“People on the brink of burnout have usually been feeling low for some time, not sleeping well, have little energy or cry for no reason,” says Luxembourg-based hypnotherapist and health coach Lynsey Baxter. “Many feel that it’s all too much

One female burnout sufferer arrived in Luxembourg having already worked a stressful 12-hour day for three years in her home country. “We had a six-month trial period here and everyone from superiors to colleagues terrorised us that people who join as bulk will get fired by the end of the trial period. This atmosphere created a huge amount of stress to impress people and do the job well, and not to leave early or have any kind of work-life balance,” she says.

At first she started losing hair but put it down to a change of country or climate. At the end of the trial period she had excruciating neck pain, couldn’t sleep, couldn’t perform, but was afraid to go to the doctor or take sick leave. A visit to a neurosurgeon resulted in prescribed painkillers, muscle relaxants and sick leave. She took a week off, and returned to an angry man-

ager. “After one month I couldn’t move again, but this time I went to the doctor and she saved my life. She did blood tests which showed my cortisol levels were three times above the upper limit. She supported me to relax, change my mentality and take control.”

Despite asking for a new manager things at work didn’t change and she felt labelled as a bad employee: “HR took the attitude that perhaps I was not tough enough. It was everyone for themselves amongst colleagues.” Eventually she changed job. “It took a year for my cortisol levels to return to normal, but today I am a far stronger, protective version of myself,” she concludes.

These cases are not unusual. A report issued by the Chamber of Employees in November 2018 showed that 40% of the working population (including Luxembourg residents and cross-border workers) have difficulty with work-life balance, 31% suffer from physical health problems, and 57% did not find it easy to switch off from work. Despite most contracts stipulating a 40-hour week, men work an average of 43.7 hours a week and woman an average of 42.4 hours. Possibly most telling of the statistics, 8 out of 10 received work calls or emails outside of working hours.

Right to disconnect

Last year, Mohamed Shiha put forward a petition to the Chamber of Deputies for the “right to disconnect” to be added to the labour laws in Luxembourg as a mechanism to fight the growing tide of burnout and draw the line between work and personal life. The petition details key tools, including that an employer will not reach out to employees more than 30 minutes after the end of working hours.

“We cannot blame technology as flexible working and home-working have only been made possible by it. This petition is to stop the irresponsible use of technology,” Shiha argues. “Employees who expect emails any time after the working day are not disconnecting

“To know when to ask for help is not a weakness.”

Melanie Molz-Kroll Occupational health psychologist

43

Burnout

and get overwhelmed by things they used to take in their stride.”

Baxter believes that burnout can be resolved without quitting a job: “Sometimes it’s about working out strategies to cope with what is causing the issue.

If mobbing is the cause, then helping to boost self-confidence and self-esteem can help the person to change the dynamic of the workplace. New mums returning to work often need to change the way they do things to realise they don’t have to be a superwoman.”

Diet and lifestyle changes can be a first step, says Baxter, in addition to ensuring you are getting enough good quality sleep.

She uses hypnotherapy and brain working recursive therapy to help her clients feel mentally and emotionally stronger. She also suggests that supplements, particularly vitamins C, B complex and magnesium, can help restore nutrients depleted by stress. “The adrenal and thyroid glands take the biggest hit during burnout so supplements can help balance the stress response,” she explains.

Melanie Molz-Kroll, an occupational health psychologist, says burnout sufferers are often quite dedicated workers

FEBRUARY/MARCH 2019

from work and put themselves at risk of mental and physical problems.”

The petition was first classified as public (needing 4,500 signatures to get a hearing), but has been reclassified as an ordinary petition (to be reviewed by the petitions committee). Shiha hopes that parliament will respond soon. He says that forms of the right to disconnect are already in place in France and Germany, and that a measure to prevent digital burnout can coexist with entrepreneurship and innovation.

Occupational health psychologist Melanie Molz-Kroll has supported individuals with issues at work for 15 years. In the last 8 years, more and more clients have sought help for burnout. “It is possible to continue working if you are conscious and determined enough, but you have to introduce some changes like going home at a certain hour, not checking your emails in the evenings and at weekends, and learning to say no to demands,” she says.

For Molz-Kroll there are three phases to burnout. “The first phase includes early signs of exhaustion such as pains of all

sorts, headaches, insomnia, energy loss and a tunnel view of feeling trapped in a situation. In the second phase, depersonalisation starts and sufferers show irritability, can have aggressive outbursts and difficulties with concentrating and memory. They tend to work more and more to achieve or finish tasks and withdraw socially as they have no spare time. It’s often coupled with feelings of guilt because they know they are not as functional or present for loved ones. In the third phase, exhaustion is physical, emotional and mental. Over-thinking is second nature and people alternate between a fighting spirit and discouragement, with mood swings and even depressed thoughts that border on suicide,” she explains.

Taking the first step

Accepting you have reached your limit and cannot continue is the first step. “Do not lie to yourself that you can handle it alone. Go to a doctor as soon as you notice the symptoms and don’t be afraid

to admit you’re vulnerable,” says the male burnout victim.

“To know when to ask for help is not a weakness,” states Molz-Kroll. “Burnout sufferers are often very committed and dedicated to work, have high standards and are competitive. They tend to see burnout as a failure.” Her first task as a counsellor is to help them accept their state and see there is a chance to have a more satisfying life. Her integrative approach uses different tools that combine cognitive behavioural stress management techniques with body-centred techniques including lesser-known tension releasing exercises. “Tension is sometimes so deeply fixed in the body and triggered by mental over-thinking and restlessness that in my experience it is important to address and release tension first before working on behavioural, mental or emotional patterns,” she explains.

Molz-Kroll mainly works with companies: “Employers tend to limit stress management to counselling and training of individuals. Whilst 79% of European managers are concerned about stress at work, less than 30% of organisations in Europe have procedures for dealing with it. In Luxembourg there is no legal obligation to assess psychosocial risks.”

The Inspectorate of Labour and Mines (ITM) provides information on burnout, including management responsibilities, and the Robert Schuman hospital has an outpatient burnout therapy programme which calls on a team of multidisciplinary experts. However, until a more systemic approach is taken by employers or until the government supports legislation, burnout still remains largely the problem of the sufferer.

Shiha is hopeful: “In the national elections of 2018, OGBL [the Independent Luxembourg Trade Union Confederation] demanded the right to disconnect from all political parties, and the coalition agreement signed by the DP, the Greens and LSAP emphasises that special attention will be given to work-related prob× lems such as burnout.”

Photo Julien Becker (archives)

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photo © Christian Aschman

We are committed to excellence.

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REPORTAGE

Chocolate factory

Sweet recipe FEBRUARY/MARCH 2019

This chocolate deer is not meant for consumption.

It decorated the offices of Oberweis when Delano visited in January. After a certain period of time, the chocolate will be remelted and fashioned into a new seasonal creation

WORDS

Esther Bechtold

PHOTOS

Jan Hanrion/Maison Moderne

47

Chocolate factory

The local bakery and chocolatier chain Oberweis got started in 1964 when Pit and Monique Oberweis opened their first shop in the avenue de la Faïencerie.

It was small, but their sweet delights quickly gain popularity and soon Oberweis was delivering them all across the country by moped. Nowadays, Oberweis has seven locations.

Of Oberweis’ roughly 400 employees, one hundred work in “sweet production” and another hundred in “savoury production”. Only ten employees work in administration, which is remarkable given the size of the business.

Centralised production allows Oberweis to control the quality of their products, which are all manufactured in Cloche d’Or, the firm told Delano during a visit in January. A new production site is set to open in Munsbach in 2023.

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FEBRUARY/MARCH 2019

Oberweis prepares all of its chocolate creations at its kitchen in Cloche d’Or

49

Chocolate factory

Handmade cake decoration: white chocolate is poured over a transparent ribbon

Once it has cooled slightly, excess chocolate is scraped away

Warm chocolate is then smoothed over the ribbon

Finally, the chocolatier can lift the chocolate ribbon, place it around the cake base and remove the plastic strip

50

FEBRUARY/MARCH 2019

Once covered in chocolate, Savic Jovica decorates the sweets by hand

Ready to decorate

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Chocolate factory

This machine cools down confections that have been covered in warm chocolate

It’s the latest buzzword, but what does it really mean?

Here’s how some companies have successfully, and unsuccessfully, digitalised their business.

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FEBRUARY/MARCH 2019

Technology

What is digital transformation?

WORDS

D

igital transformation! It’s rare for discussions about contemporary business strategy to not eventually turn to new technology and how data is revolutionising everything. But have things really changed?

For example, fintech has been changing finance since before the first ATM was used in 1966.

“The implementation of tools to help the company evolve and to achieve higher levels of change,” is a definition of digital transformation favoured by Remi Grizard, a senior advisor at Luxinnovation, the national business development agency. The goal is helping staff to be more efficient, easing cooperation with partners, and of

Stephen Evans

PHOTOS

Mike Zenari

course improving the customer experience.

This necessarily broad definition is similar to others that populate the web, consultants’ brochures and PowerPoint slides. “It’s about exploring every possibility offered by the technology and market trends, so clearly it’s a very broad subject,” Grizard added. Yet it is the lure of finding value in data that marks out the current wave of digital transformation.

Disrupt others or yourself?

The global move by burger chain McDonald’s to have clients order food by mobile apps (and touch screens) is widely cited. Having clients place their orders electronically

generates cost savings and improves the services by abolishing the queue, and even seeing clients served at their table. More, the app opens up ways to create relationships with clients, using their preferences to inform sales promotion offers and rewards programmes. McDonald’s has thus transformed itself into more a digitally focused company than it used to be.

The rhetoric can get quite strong at times, tapping into the thoughts in most of minds that digital is set to revolutionise all areas of our life. “Disrupt yourself,” was the advice of Bob Kneip, founder and chairman of the fund services firm Kneip speaking at a recent British Chamber of

53

Technology

Remi Grizard of Luxinnovation admits “digitalisation� is a broad term

Digital transformation

44

Denmark, France and Italy had the best integration of digital technologies in an analysis of the EU28. Luxembourg was further down the top 10, between Spain and Greece, but still comfortably above the bloc’s average.

Score

FEBRUARY/MARCH 2019

37 FINLAND

42

32

ESTONIA

SWEDEN

33

62 DENMARK IRELAND 23

UK

NETHERLANDS

52 BELGIUM

39 EU28

23 LITHUANIA

40

54

LATVIA

48

35

41

GERMANY

CZECH R.

44

POLAND 19 SLOVAKIA

39

LUXEMBOURG

24

AUSTRIA

56

HUNGARY

30 SLOVENIA

FRANCE

44 ROMANIA

35 CROATIA

56 PORTUGAL 22

46

22 BULGARIA

ITALY

SPAIN

43

GREECE

34

30

CYPRUS

MALTA

Commerce for Luxembourg event. The idea that firms should seek to undermine their own business model internally is radical.

Yet, incumbents are best placed to seize opportunities with their market access, technology and balance sheets. When managed well, disruption grows markets, and a rigid defensive response is often inherent with risk. Telling the difference between a threat and an opportunity is where CEOs earn their money.

How to start

How should they start this process? The demise of the film company Kodak is often cited when digital transformation is

considered. But the lessons are perhaps more subtle than is often thought. This firm was once one of the largest in the world, but is now just another technology firm. However, this is not because, as many think, that it refused to anticipate technological change.

Kodak developed the first digital camera prototype in 1975, but rather than seeking to hide this innovation as is widely believed, they sought to build on it. “In fact, Kodak invested billions to develop a range of digital cameras,” said the Harvard Business Review in the 2016 article “Kodak’s Downfall Wasn’t About Technology”. Even as late as 2001, the firm

invested in an online photo-sharing site, Ofoto, seeking to become a hub through which digital photos could be shared.

So where did it go wrong? Using its powerful brand, the firm could have taken the position now occupied by Instagram.

However, it failed to anticipate where the market was headed and its strategy was insufficiently well thought through. It sought to use Ofoto to encourage users to print digital images.

Know yourself...

Yet history has shown they looked at the question the wrong way. If Kodak had thought of itself as facilitating the display

Source European Commission, “Digital Transformation Scoreboard 2018”

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FIT4DIGITAL BY LUXINNOVATION

Hugues Prevoo and Loïc Marziou of Banque de Luxembourg reckon that digitalisation is less about technologies and more about priorities

and sharing of images, it might have arrived at the correct processes that could have enabled it to change. The problem seems to have been that it could not shake its belief in itself as primarily a film production company.

They did not need to make a prediction in 2001 about how the industry would look in 2019. But they did need to ask the right questions. They needed a clear view of what business they were in and what problems they were seeking to solve for customers. This should have been the focus, not what technologies they had.

This has been the guiding philosophy for the Banque de Luxembourg’s recent

investments in technology. “Everything is possible with IT, but the question isn’t what we can do but what we want to do,” said Loïc Marziou, head of digital transformation at the private bank. “We take a customer-centred approach, working with them to find what they need, and this process helps us focus our efforts,” he added. ... and your customers

Fundamental to this has been sustained investment over a ten-year period in their core banking system and the applications landscape that give them the flexibility to create the services they would like to offer their clients. “Given the digital evolution

If you think your small- or mediumsized business could benefit from digital transformation, but you are unsure of how to proceed, Fit4Digital could help. Run by the national economic development agency Luxinnovation, it offers smaller businesses a chance to embrace the digital revolution.

The first step is to work with a specialised private consultancy approved by Luxinnovation and chosen by the participating company. They will provide a 360-degree diagnosis of the company’s organisation and its processes, a digitalisation-oriented action plan is developed and then implemented. Subsidies of up to 50% of the costs incurred can be claimed. A small- to medium-sized business is defined as having fewer than 250 employees and less than €50m in turnover. Some business sectors are excluded.

“In 2018, we worked with about 50 projects, ranging from startups to well-established firms,” noted Remi Grizard, the senior advisor at Luxinnovation responsible for Fit4Digital. “Each suggestion aims to increase competitiveness, whether that is about gaining new clients, increasing sales or reducing internal inefficiencies.”

For example, they worked with a local bakery, helping them put in place a digital system that coordinates supplies, thus reducing waste. A photographer was helped to define and create an online marketing strategy using social media, with support from a backoffice system for online orders.

A sports shop introduced client management software to better communicate with clients online.

www.luxinnovation.lu

Technology

56 Digital infrastructure

Score

The Netherlands, Luxembourg and Denmark have the best performing digital infrastructure in an analysis of the EU28.

Netherlands

85

Luxembourg

80 78 76

Finland

76

Sweden

70

Malta

67

Spain

67

Portugal

66

Ireland

60

Austria

59

Lithuania

59

Germany

57

Cyprus

52

France

52

Slovenia

Source European Commission, “Digital Transformation Scoreboard 2018”

FEBRUARY/MARCH 2019

Denmark Belgium

48

UK

46

Italy

45

Czech Rep.

42

Slovakia

37

Estonia

35

Croatia

24

Greece

23

Latvia

16

Poland

16

Hungary

14

Bulgaria

13

Romania

12

EU28

48 0

five years ago, we became aware it was time to change our IT architecture, moving away from a ‘spaghetti-like’ pattern to a more modern approach, which would allow us to leverage opportunities for innovation with regard to our clients,” noted Hugues Prevoo, previously in charge of IT architecture at the bank.

The goal was to reform this, moving from a silo-based approach to a modular, open service-oriented approach. The result is a system that can be adapted to individual client's needs without having to reinvent the wheel each time. “This is what we call customer-centric architecture,” Prevoo added.

20

40

The first major project with the new architecture was a renovation of their web banking solution featuring new tools for customers. They build with reuse in mind, so that other teams and projects could feed from this work. Thus, when they came to develop a mobile app, they could adapt many of these elements.

“We took just six months from start to finish to launch the mobile application, with just four months of this being development,” explained Prevoo. Using another approach based on the previous architecture would have taken twice as long.

Having a vision is one thing, but understanding from the beginning how this will

60

80

100

interact with the technology and client expectations is another. It is also important to have realistic deadlines with the ability to achieve quick wins, rather than having deadlines that extend years into the future.

How to drive change

Central to projects of this nature is buy-in from senior management. Big IT changes are likely to cause disruption, and create extra work for business focused staff, as well as costing substantial sums for the initial investment. Persuading managers to take this leap can be tricky. This is why terms like digital transformation come in, to try to create an aura of the need to get

57 Supply and demand of digital skills

Score

Ireland, the Netherlands and the Nordics have the best “digital skills for digital transformation” in an analysis of the EU28. They are followed by a second tier of countries: the UK, Luxembourg and Belgium.

94

Netherlands

89

Sweden

86 84

Denmark

83

Finland 66

UK

65

Luxembourg

65

Belgium France

58 55

Spain Malta

55

Austria

55

Germany

Source European Commission, “Digital Transformation Scoreboard 2018”

53 53

Cyprus 47

Estonia Hungary

38

Slovenia

34

Portugal

34 34

Czech Rep. Bulgaria

30 27

Italy 24

Greece

24

Croatia 21

Lithuania

20

Poland Latvia

18 11

Slovakia 6

Romania EU28

45 0

moving on change. The danger is that the buzzword obscures what needs to be done.

One impulse for change in the banking sector has been the EU’s second payment services directive (see Delano’s September/October 2018 edition). This requires banks to open access to account data to third parties at the request of customers. Yet although the directive was designed to open banks to competition, it also provides momentum for banks to innovate themselves.

How to manage change

There is also greater understanding of what it takes to innovate, and manage-

20

40

ment has to understand how progress can be made. “Innovation is an iterative process that features the acceptance of fast failure,” explained Marziou. “We invest, we will make mistakes, we will need to retrace our steps, but we will have learned and we can correct these errors quickly.”

This is the basis of techniques such as the “agile” approach which breaks IT development down into smaller tasks, and sets short deadlines for each phase. This makes projects easier to manage, allowing errors to be corrected before they become embedded. It seeks to deliver small but relevant business benefits

60

80

100

quickly. It embodies the “fast-fail” approach. But this too requires the close attention of business managers if decision makers are to understand and guide × the process.

Technology

Ireland

GET THE PICTURE

China links

Xin nian kuai le!

Chinese people celebrate the start of the year of the pig on 5 February. Delano explores the Chinese-Luxembourg economic connection.

WORDS PHOTO

FEBRUARY/MARCH 2019

Banking centre 7 Chinese banks have established EU hubs in Luxembourg. [3]

Jess Bauldry Patricia Pitsch/Maison Moderne

Chinese investments abroad Luxembourg is the preferred hub for 12 mainland and Hong Kong based fund promoters.

[6]

Local community The number of Chinese citizens living in Luxembourg doubled from 1,610 on 1 February 2011 to 3,512 on 1 January 2018.

[1]

Beer sales Bofferding exported 200,000 bottles of beer to China from 2016 to 2018. They’ve been exporting there since 2007, mainly to restaurants. [5]

Trade figures Luxembourg exported goods and services worth €247m in 2017 and imported the equivalent of €174m. [2]

Sweet stuff Among the Luxembourg brands selling abroad are the Chocolate House, which opened a franchise in Shanghai in 2018.

[3]

Air freight Cargolux flew 83,060 tonnes of freight from Luxembourg to China in 2017, falling to 68,714 in 2018.

China was more consistent, sending 87,039 tonnes to Luxembourg in 2017, and 87,595 in 2018. [4]

Investments into Luxembourg In June 2018, Luxembourg held 28% of global investment funds investing into mainland China, and 74% of European investment funds. [6]

Sources [1] Statec [2] China-Luxembourg Chamber of Commerce [3] Delano reporting [4] Cargolux [5] Munhowen [6] Luxembourg for Finance

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MORE CHOICE, MORE WOW!

60

FEBRUARY/MARCH 2019

SPECIAL REPORT

Asset management & compliance

Following the rules It’s no secret that fund firms face an evolving set of regulations.

These include new guidelines for board directors and an extension on producing a new type of document for retail investors. We start with recent anti-money laundering rules.

WORDS

Stephen Evans

The OECD review in particular is “likely to be a thorough process for which we will have to provide highly technical answers,� Claude Marx, director general of the Luxembourg financial regulator CSSF told the Institut Luxembourgeois des Administrateurs' Directors’ Day conference on 29 November 2018.

As well as technical compliance, he expects regulatory effectiveness to be probed, with substantial input sought from regulators and significant market players. EU AML rules apply to financial businesses and a range of others including lawyers, notaries, real estate agents, auditors, casinos, jewellers and more. None of these should be surprised if they receive a call. Marx pointed out that, during their recent reviews in other countries, the FATF had focused on corporate and trust services providers.

1.

International focus on AML How Luxembourg combats money laundering and other financial crime will come under the microscope over the next 18 months. Both the EU and the OECD will be reviewing Luxembourg’s laws and practices by the middle of next year.

As part of a new procedure, all EU member states will have their anti-money laundering (AML) practices reviewed by

The CSSF is keen to be seen to take this seriously, and they are stepping up their emphasis on AML. Already in August 2018, they published Circular 18/698 which served to clarify money laundering and corporate governance rules for investment fund managers.

Little of this is new, but the financial sector has been put on notice that they have no excuses for not being compliant, or being able to show they have a clear plan to be so and are making substantial progress. More broadly, relevant organisations “should expect visits from the CSSF related to AML this year,� noted Thomas Berger, counsel with the law firm Allen & Overy.

Implementation near

Given this, it was somewhat embarrassing that on 8 November 2018, the European Commission referred Luxembourg to the European Court of Justice for failing to fully transpose the 4th anti-money laundering directive (AMLD4) into national law by the June 2017 deadline.

Yet the country was not alone, with Romania and Ireland also having been referred to the EU court, and a further 18 having received notification about perceived lack of compliance. Rather than this being a sign of member states seeking to avoid rules they themselves

61

“We are pretty close to full implementation in Luxembourg,� noted Berger. He said the vast majority of AMLD4 has been implemented, but at the turn of the year, two sections remained to be implemented.

The first related to the creation of a register of beneficial owners of companies, and the second aspect regards the register of trusts and fiduciary contracts. These rules should be implemented before the EU court considers the matter.

Complications

Berger pointed to some of the reasons for these delays. He said that some of the practical details in AMLD4 have been in Luxembourg legislation since 2010 following recommendations from the FATF. “AMLD4 does not require as many major changes as it has for other countries as Luxembourg had already upgraded some years ago,� he said. He also pointed out that while the full implementation of AMLD5 has not started yet, Luxembourg

wanted to anticipate some of the

Photo Allen & Overy

Major audits

put in place, it is more to do with the complexity of the task.

Thomas Berger Counsel Allen & Overy

“ We are pretty close to full implementation in Luxembourg."

Asset management & compliance

the European Banking Authority over the coming years. Luxembourg will be in the first wave of audits in 2019. Then, in June/July 2020, the OECD’s Financial Action Task Force will be in the country to conduct their routine once-a-decade review of OECD members, 10 years after the last such in-depth study.

FEBRUARY/MARCH 2019

changes and incorporate some aspects directly into the legislation. This added to the delay, but should mean the country will be in time for the 10 January 2020 deadline for the 5th directive.

scenarios using a set of standardised formulae. As well, there is a formula for calculating the total cost of the products, including how the market has moved since the order was placed and executed.

Moreover, some of the AMLD4 rules have been relatively tricky to implement due to Luxembourg being an international business centre. Almost all beneficial owners are non-resident, and the country’s different cross-border businesses needed to consider a range of implications.

“The predictions for future returns are based on the most recent five years of data, thus ignoring events such as the 2007/2008 financial crash,â€? noted François-Kim HugĂŠ, partner at Deloitte Luxembourg. There are problems too with the transaction costs estimations, with some suggesting negative costs. Insurance providers have already been supplying the PRIIPs KID to clients since the start of 2018, and it was planned that investment fund providers would follow from 1 January 2020.

National assessment

As another effort at preparing the country, the government published a “National risk assessment of money laundering and terrorist financing� on 20 December 2018.

This is a sort of stock-taking exercise to demonstrate that the authorities are aware of different threats and vulnerabilities. The publication includes a list of the sectors affected by AML rules and gave each an inherent risk factor. Private banking and foreign trusts were the only sectors of activity ranked as having “very high� risk.

A further two dozen were classified as having “high� risk, including collective investments, custodian banks, retail banks, payment institutions, lawyers, real estate professionals, the hospitality sector and more.

Industry lobbying bore fruit on 3 November when the European Parliament voted to delay implementation to 1 January 2022, with the authorities promising to review the rules in the meantime. Until then, funds will continue to issue the less complex key investor

information document (KIID)

As well as ensuring compliance measures are in place, the country also has to enact AMLD5 rules by the start of 2020.

Fortunately, this legislation is an update of existing rules rather than a complete Ă— revision (see box to right).

Photo Deloitte Luxembourg

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2.

What next for the PRIIPs KID? Many in the investment fund sector drew a collective sigh of relief late last year when implementation plans for the controversial PRIIPs KID were put on hold for two years. Could this be the sign of willingness by the EU to rethink the KID? Those drafting the packaged retail and insurance-based investment products (PRIIPs) directive had good intentions.

They wanted a key information document (KID) to be created for each retail product to help the average investor compare different options. Whilst a reasonable principle, the problems came with the detail. Part of this is a requirement to calculate predictions of future performance

François-Kim HugÊ Partner Deloitte Luxembourg

“Everyone in the fund industry has welcomed this move.�

HIGHLIGHTS OF THE 5TH AML DIRECTIVE Cryptocurrency exchanges and providers of electronic wallets are now included in AML rules.

Anonymous pre-paid cards will have a limit of â‚Ź150.

Access to the central register of beneficial owners will be widened to the public, where AMLD4 limited this to government agencies, obliged entities and individuals with “legitimate� interest (already foreseen in Luxembourg law).

However, the public will only have access to a limited range of data.

Registers of beneficial owners of EU member states will be interconnected.

More information will need to be collected regarding all business partners with ties to high risk territories.

Central registries for bank and payment accounts must be created.

Facilitating access of national financial intelligence units to information.

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required by the Ucits directive. This move followed a suggestion by the EU’s three European supervisory authorities (ESAs).

Outstanding questions

FEBRUARY/MARCH 2019

“Everyone in the fund industry has welcomed this move,” noted Hugé, but the question remains whether real reform is likely. Some analysts are quietly hopeful that the two-year delay points to serious disquiet behind the scenes at the EU. “For now, all we have seen are proposals from the ESAs to add further information on past performance, but this will not address the issue of the lack of clarity of performance scenarios,” he said. “On the contrary, this adds more complexity and does nothing to address the question of the future performance projections.”

Indeed, the consultation paper released in November by the ESAs suggested some small adjustments to the way future returns are predicted. Many in the industry worry that them being asked to make predictions at all could be potentially damaging for them and the industry in general. Then, on other points raised by critics (such as the calculation and presentation of fees and costs), the paper said very little. The industry still has a lot of work to do to convince EU decision makers of the need for change. ×

shell companies. One of the responses in Luxembourg has been a circular (18/698) from the regulator CSSF published last August (see box on right). It describes clearly the expected governance structures and organisational steps to be taken by investment fund managers.

“The circular is broadly a codification of best practice,” noted Nicolas Deldime, partner with Arendt Regulatory & Consulting. There is also particular focus on anti-money laundering and counter terrorism financing rules. The CSSF has let it be known that fund structures either need to be compliant now, or to be acting on clear plans to become so.

The regulator has also recommended that professionals should talk to them if they have governance concerns.

In the past, it was easy to see company governance as a tick-box exercise. Now, there is increasing pressure to look for all manner of potential risk: everything from cyberattacks to media campaigns. So as well as legal and accounting skills, ideally, boards of directors should include people with a broad range of business experience.

Funds under scrutiny

Investment fund boards in particular have come under increased scrutiny of late. Regulators at the European level have expressed their preference that funds based in international hubs (like Luxembourg and Ireland) should be substantial operations, and clearly not

CIRCULAR 18/698 KEY POINTS

Time limits

One of the most eye-catching aspects of the circular are the limits that have now

been put on the number of board

3.

Watching the watchers “Why did nobody see it coming?” is one of the more polite questions the public asks about the 2007/8 financial crash. This sentiment is driving the professionalisation of business governance structures.

Photo Arendt Regulatory & Consulting

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Circular 18/698 published in August 2018 seeks to clarify a range of rules around the “authorization and organization of Luxembourgish investment fund managers” (IFMs) and the fight against money-laundering and terrorism financing (AML/CFT).

These include: Clarification of what it means for board members to be “fit and proper” Limits on the time spent (1,920 hours per annum) and number of mandates (20) for board members Details on expected minimum staffing and internal control requirements Clarification of risk management documentation requirements for funds Implementing rules for AML/ CFT within IFMs and reporting to CSSF Clarification of delegation and oversight rules Clarification of deadlines for the filing of regulatory reports

Nicolas Deldime Partner Arendt Regulatory & Consulting

“Each director should be responsible for the whole company.”

ASSET MANAGEMENT TALK The Association of the Luxembourg Fund Industry’s European Asset Management conference features panel talks on CSSF Circular 18/698, and on anti-money laundering and counter-terrorism financing rules. The event takes place at the European Convention Center, in Kirchberg, 5-6 March 2019.

www.alfi.lu

Banque de Luxembourg, société anonyme – 14, boulevard Royal – L-2449 Luxembourg – R.C.S. B5310

“How do you manage the the “How do you manage “How do you manage the increasing complexity increasing complexity increasing complexity in the fund industry? in the fund industry? in the fund industry?

You don’t.

We do.” do.”

You don’t.

We You don’t. We do.”

Please contact Germain Birgen, Head of Business Development, Please contact Germain Banking Birgen, Head Business Development, Professional +352of 924 4949.

Please contact Germain Birgen, Head of49Business Development, Professional Banking +352 49 924 4949.

Professional Banking +352 49 924 4949.

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Ucits-mancos

4.1

FEBRUARY/MARCH 2019

Alternative investment funds

4.3

Ucits

4.6

4.9

Super mancos

AIF-mancos

5.6

0

mandates any individual can hold. The maximum has been set at 20 mandates taking no more than 1,920 hours of work time per year. Some people see this move as part of Europe-wide moves to harmonise regulations, with the rules on directors’ mandates being in line with those in CRD IV related to the banking sector.

However, rather than being fixed thresholds, Deldime suggests professionals should follow a “comply and explain” approach. “A director might be able to demonstrate that a suite of mandates forms part of the same fund complex and that there are economies of scale,” he added. For example, related intermediaries or holding companies could be grouped together. “Ultimately this is a basis for discussion which brings all directors back to the question of ‘Do I have enough time to do my job properly?’,” Deldime said.

Each individual director or conducting officer has to complete a form released by the CSSF at the beginning of the year listing their duties. This rule is likely to apply to fund directors as well.

Comply and explain

There is also a consideration for those who are on boards as directors or conducting officers as part of their job. Yes, a senior executive will clearly have a good idea of many of the questions confronting the business, but still, potentially adding extra responsibilities onto a 50-hour a week job might be a stretch.

Some have argued that the new rules act against individuals with specialist insight

Source “Luxembourg Fund Governance Survey 2016”, published by PwC and ILA

How many on board?

Number of board members, including chairman, by type of investment fund

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contributing to numerous companies, but Deldime is sceptical. “Each director should be responsible for the whole company and this requires more than giving a short speech at a board meeting,” he said.

Nevertheless, the CSSF has underlined that they will consider the individual and collective expertise of directors when judging an application. This increases the pressure on individuals to secure professional qualifications and training certificates. Additional independent board members may also be a way to meet the requirement since they can bring expertise and industry insight. This is a clear trend in Luxembourg, with the CSSF recommending two independent directors per board. This has become particularly relevant now as “over the last five years, fund directorship has become a real profession; the role has expanded and people understand better what is expected”, Deldime added.

Focus on efficiency?

However, rather than concerns about counting individual hours, perhaps more focus could be put onto increasing the efficiency and effectiveness of each director and the meetings they are required to attend. Efficient preparation before meetings would help, as would having information made easily available and in a digestible format. This requires investment in organisation and IT. Part of the problem is that the current regulatory framework and practice has emerged piecemeal, and quite quickly since the global financial crisis. Often, there is a lack of clarity and logic for this reason. Also, technology is often not

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mature as each company will tend to have different needs, making it hard for developers to create universally useful solutions. Another difficulty is that regulators want to see that firms have the necessary staff, but this comes at a time of high competition for recruitment.

Also maybe there needs to be a strategic rethink. “The manco business is not necessarily fully integrated by the asset management practice,” Deldime noted.

Often, asset managers and asset servicers see manco compliance as a burden, meaning the quality of information provided can suffer. It can be hard for the fund or management company to be heard, but the players need to listen to as this concerns key regulatory requirements.

Also, there is widespread frustration with having to duplicate work. So maybe there could even be an enhanced role for investment fund managers and boards in Luxembourg, with controls and decision × making becoming more centred here.

your business advisors

Distinctive perspectives in Advisory corporate finance & modeling / strategy & sustainability / operations & performance

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Perspectives

“What is the pressing issue facing asset managers this year?”

Photo Banque Havilland

FEBRUARY/MARCH 2019

Photo Banque de Luxembourg Investments

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Cultural revolution

Risk premia

Patricia Kaveh Head of distribution Banque de Luxembourg Investments

Stefano Torti Group head of asset management & advisory Banque Havilland

In 2019, asset managers will face two major challenges--in investments, and in their business and distribution models.

As far as investment challenges for 2019 are concerned, as the economic slowdown is starting to have an impact globally, investors will face greater volatility and more difficulties on the markets. Fund managers will have to be very selective in their investment approach and active management will be the key for 2019.

There was not much cause for celebration in the asset management industry in 2018.

The S&P 500 posted the worst month of December since 1928, and more than 90% of the major asset classes failed to outperform a short-term government bond allocation, something that has not happened in more than 30 years. What also disappointed investors was the fact that fixed income and several hedge funds gave little help to multi-asset portfolios, with the HFRX hedge fund index down more than 7% for the year.

Another aspect is the increasing investor attention in ESG criteria. Fund managers will need to see how they can incorporate these extra-financial considerations into their investment approach and portfolios.

While in some asset classes this will be straightforward, in others, such as fixed income and emerging markets, there will be more of a challenge.

Fund distribution and business models will experience their own challenges in the face of a changing landscape characterised by constant regulatory pressure, the need to respond increasingly quickly to clients’ requirements, and new dynamics linked to demographics, digitalisation, globalisation and cultural shifts in our society. As well as this, and in contrast with the past when asset managers sold investment funds, nowadays, we have to offer service-oriented solutions.

The challenges in our business are to reconcile these different dimensions by organising our own cultural “revolution” by being agile, proactive, responsible and engaged. These for us are the key guidelines that will help us rethink × our business model.

With this legacy, the real challenge that asset managers face for 2019 and the years ahead is to provide clients with durable portfolio construction techniques.

Techniques that allow investors to profit from a larger array of “risk premia” than those provided by a simple equity-bond allocation. In this way, portfolios will be less affected by violent market swings, proving that there is value for the fees paid (compared to the ETF industry that continues to grow their share of the market at lower and lower prices).

A strong commitment to research, innovation and creativity is a must for 2019. These concepts were sorely lacking in previous years as the majority of the asset managers surfed on the back of a multi-year bull market, possibly comforted by the famous John Maynard Keynes quote that “Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed × unconventionally.”

BRAND VOICE

CHALLENGES

Guy Hoffmann Chairman of the ABBL

Foster financial skills The ABBL welcomes the fact that financial literacy has caught the attention of the new government, which has set goals such as including financial literacy courses in elementary schools, introducing modular financial education courses in high schools and offering open information sessions on various financial topics.

Photo Matic Zorman

Learn to manage money Throughout our lives we are faced with important decisions regarding financial planning: how to spend money, how to save, how to prepare for retirement, or how to manage non-foreseeable events affecting our financial situations. The ABBL tries to ensure that young people are able to acquire financial knowledge to help them better manage their money.

Financial literacy

Going beyond banking: education for all The Luxembourg Bankers’ Association (ABBL) offers ongoing support for the development of financial literacy at all levels in Luxembourg and beyond through its own initiatives, collaborations, and projects.

Why is it important for the ABBL to support financial literacy?

GUY HOFFMANN We strongly believe that Luxembourg’s banking community has a role to play in raising awareness about the need for the dissemination of financial knowledge. We are convinced that the development of financial literacy skills is essential to equip people with the necessary knowledge required to face the many decisions each one of us is confronted with in our daily lives. Numerous studies conclude that financial literacy is best instilled when learnt from an early age and helps citizens better understand and manage the daily financial aspects of life. As the oldest and largest professional association in the financial sector in Luxembourg, we advocate for the integration of financial literacy into school curricula so that all children in Luxembourg can benefit from this initiative from the beginning of the learning process.

What kinds of initiatives has the ABBL been involved in over the last years?

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ABBL

We used to focus solely on providing information to bank customers but over the years we have developed many projects.

To achieve the best possible outcome, the

ABBL decided in 2015 to partner with other actors involved in financial literacy.

Together with the CSSF, Luxembourg’s financial regulator, NGOs, consumer protection associations, and financial centre representative bodies, the ABBL elaborated the national strategy for financial education.

Along with other European banking associations, united under the European Banking Federation, we launched the “European Money Week”, organised annually in most European countries. In Luxembourg during the “Woch vun de Suen” we have been offering two hours of basic advice including how to spend money wisely for 10 to 12-year-olds for five consecutive years.

What are the next steps?

In 2016, we created the ABBL Foundation for financial education, which is dedicated exclusively to promoting and supporting financial education at all levels as well as doctoral research and corporate programmes.

The ABBL will continue to support the CSSF in its efforts to develop educational tools addressing important issues such as credit, saving, over-indebtedness, retirement, or managing a personal budget. As of this year, we will also offer high school students the possibility to participate in the European Money Quiz, a competition testing the financial knowledge of 13 to 15-yearolds. Financial literacy will remain a priority for the ABBL and we will continue to develop our activities as well as support × others in doing so.

Financial literacy

Consumer protection The ABBL is committed to raising awareness among adolescents to address topics such as financing studies and property rental and purchase. With the Luxembourg Chamber of Commerce the ABBL launched the “One minute in finance” educational videos to inform people about banking matters.

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FONDSFRAUEN

FEBRUARY/MARCH 2019

The organisation holds networking and informational events for women in the financial sector in Germany, Switzerland and Austria, and is getting ready to unveil its programme in Luxembourg.

All events here will be held in English. They also offer mentoring and professional matchmaking.

Altogether, they’re connected with about 2,100 women. ­

INTERVIEW

Asset management

“It’s all about the talent” German-based Fondsfrauen supports women working in the funds industry and is coming to Luxembourg.

Manuela Fröhlich explains how the outfit got started.

WORDS PHOTO

Aaron Grunwald Patricia Pitsch/Maison Moderne

M

anuela Fröhlich likes to keep busy in her spare time. When the Bavarian fund executive and music fan lived in London, she managed four rock bands on the side. “It’s the same principle,” she says.

“You have to do your negotiations, need to get on the road, you have to budget costs.” After 13 years in the UK, she moved to Frankfurt and decided to use her spare time to promote women in the asset management industry.

When Fröhlich met up with two longtime friends at an industry event--Anne E. Connelly, a former Morningstar manager, and Anke Dembowski, a financial journalist--they ended up discussing the quota that required 30% of board members at large German firms to be women.

“We’d been pioneers in the industry,” says Fröhlich. “We’d always found it was a lonely ride, but it never occurred to us to do something.” The quota sparked them to act.

Fondsfrauen (funds women) “was pretty

www.fondsfrauen.com

much born around a table” at that conference. It went live in January 2015.

The outfit started hosting free networking events in Frankfurt and it soon expanded. First to Munich. Then, a board member said: “We need that in Zurich.”

“We were then approached by banks in Austria,” Fröhlich recalls. Fondsfrauen also introduced a mentoring programme (limited to 13 places at a time) and specialised workshops (free for members).

They try to avoid banging on the same gender equality drum. “We don’t want to constantly talk about what challenges women are facing and only this topic.”

Rather they’ll set up, for example, “a risk management panel with all female risk managers and see how they do a different job from a mixed team or a male team.”

Fondsfrauen is a limited company, not an NGO. “We believe we will be taken more seriously [as a business] than as a foundation or association.” Also, they may turn a profit in the future. “In the end, we want to build a long-term sustainable business that supports women in the asset management industry and this will be beneficial for all the employers,” who support the initiative.

Most of its corporate sponsors come via gender diversity programmes, but Fondsfrauen believes the recruitment element shouldn’t be underestimated. Corporate sponsors, Fröhlich reckons, need “to be seen and to be catching talent. It’s all about the talent.”

Fröhlich moved to Luxembourg four years ago and she’s now global head of business development for LRI, a super manco (third-party asset manager). Until recently, Fondsfrauen has just dipped their toes in the local market, partnering with the law firm Arendt & Medernach on a 2016 event and working with the consultancy PwC on a half-day forum last September. Now, they’re ready to turn up the volume in the grand duchy. A formal announcement is × expected in the spring.

EUROPEAN ASSET MANAGEMENT CONFERENCE PRODUCT | PROGRESS | PEOPLE | PREDICTION

5-6 March 2019 Luxexpo The Box, Luxembourg

events.alfi.lu/eam19

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Agenda

A selection of upcoming business, informational and networking events for Luxembourg’s international community.

ABBL

AML compliance

Monday 11 February, 15:30-18:30 Chamber of Commerce, Kirchberg

www.abbl.lu

University of Luxembourg

Anti-Tax Avoidance Directive “Five panels will discuss each ATAD provision and the wider implications within the applicable legal framework.”

Friday 15 February, 08:45-18:00 Kirchberg campus

Chamber of Commerce

www.uni.lu

Year of the pig

International chambers

Bettel talk The British, French and Italian Chambers of Commerce host Xavier Bettel, the prime minister, for a “déjeuner-débat” (lunchtime forum).

Members only.

Thursday 28 February, 12:00 Hôtel Le Royal

Luxembourg’s Chamber of Commerce and the Hong Kong Economic and Trade Office in Brussels host a Chinese new year networking reception.

www.bcc.lu LPEA

Private equity talk

Wednesday 13 February, 17:00 Chamber of Commerce, Kirchberg

www.cc.lu

Amcham

Purchasing property Mario Di Stefano of the DSM law firm speaks about “Buying your apartment, house or office on plan” at this American chamber luncheon.

Delano

Monday 25 February, 12:00-14:30

Orientation session

DoubleTree by Hilton

As part of Delano’s “Welcome to Luxembourg” series, newly arrived expats are briefed on the “communication puzzle”, the cultural and language differences that can cause stress.

Thursday 14 February, 09:30-12:45 Alvisse Parc Hotel

club.paperjam.lu

Find more events Check Delano’s digital agenda for the latest happenings:

www.delano.lu/agenda

www.amcham.lu

The Network

Female entrepreneurs “The secrets of successful entrepreneurship” event “will cover how to create and grow a business; how to keep ahead of competition; pushing through adversity,” says the professional women’s group.

BCC & LPEA

Brexit deadline The British Chamber of Commerce and Luxembourg Private Equity & Venture Capital Association hold an afterwork legal forum on “Brexit – The final countdown?” with the British ambassador, John Marshall (pictured), and former Luxembourg finance minister, Luc Frieden.

This edition of the Luxembourg Private Equity & Venture Capital Association “LPEA Insights” series features talks on ESG, space and emerging markets, among others.

Speakers include Pierre Gramegna, the finance minister.

Tuesday 19 March, 14:00-18:30 Philharmonie

www.lpea.lu

Tuesday 12 March, 18:00 19 avenue de la Liberté

www.bcc.lu

Luxembourg-Poland Chamber of Commerce

Monthly meetup Network with members of the LPCC, who are active in a number of sectors, including finance and technology. The chamber’s official language is English.

Wednesday 27 February, 19:00

Thursday 28 March, 18:30

Hôtel Le Royal

To be announced

The Network - Luxembourg

Luxembourg-Poland Chamber of Commerce

Photos Bady QB on Unsplash Claudy Decoux on Unsplash Keegan Houser on Unsplash Polina Sushko on Unsplash Lala La Photo (archives) Mike Zenari (archives) Lala La Photo (archives)

FEBRUARY/MARCH 2019

The banking association holds a seminar for members on “The new register of beneficial owners” introduced as part of new EU anti-money laundering rules.

TUE

02 APR

The international community meets for real conversation

→ Members are invited to join the Club and Delano teams and their guests.

Registration required at club.paperjam.lu

INTERVIEWS

NEW EDITION

NETWORKING

Take the opportunity to see live content.

20 minutes of onstage interviews in English.

Discover the new print magazine a day before its official release.

Enjoy a fun and friendly evening.

Bar service with quality guests.

Be sure not to miss it!

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6:30 P.M. Welcome & bar service 7:00 P.M. Delano interviews 7:30 P.M. Bar service & DJ set

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IN FOCUS

FEBRUARY/MARCH 2019

New year’s reception

74

Prime minister Xavier Bettel (DP) is the focus of press photographers as he delivers a speech during a new year’s reception for media representatives at the Musée National d’Histoire et d’Art on 9 January.

To his left are press council president Ines Kurschat and its general secretary Roger Infalt. Kurschat and Bettel both addressed issues such as the changing face of media, the surge in fake news and the danger faced by journalists around the world, from which Luxembourg remains relatively sheltered. Closer to home, journalists’ access to data and government officials, and changes to the law governing Luxembourg’s state subsidies aimed at maintaining a diverse media landscape remain bones of contention between the government and the media representation body.

Different view of media

WORDS PHOTO

Duncan Roberts Mike Zenari

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New year’s reception

The Source A guide to culture and lifestyle

78 Interview

Broadening horizons

Photo Shutterstock

New cabinet minister Sam Tanson on the challenges of the culture portfolio

86 Special feature

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Weekend getaways

Kids page

Delano’s tips for short-break destinations, like Antwerp, that you can reach by plane, train or car

Luxembourg City Film Festival has a great kids’ programme

Encouraging young audiences

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INTERVIEW

Culture

FEBRUARY/MARCH 2019

Broadening horizons The appointment of Sam Tanson as minister of culture has been discreetly welcomed by many players in the Luxembourg culture scene.

But there are plenty of challenges ahead as she oversees the recommendations of the “Plan de développement culturel” and Esch’s reign as European Capital of Culture.

WORDS PHOTOS

Duncan Roberts Mike Zenari

Tanson explains, because there are questions over whether the upkeep of certain buildings used for culture and similar expenses should be included in the calculations.

Tanson does, however, agree that culture should be viewed as an investment rather than an expenditure. “It is absurd to define culture by the receipts it brings in via ticket sales,” she says. Culture does so much more that benefits generations. And its wider impact on the economy also has to be considered--artists or the cultural institutions who invite them spend money on hotels and restaurants and other services. Then there are visitors who come to Luxembourg specifically to attend a cultural event. Not to mention the local residents who actually make a living directly from culture, either as artists or in some form of administrative role.

Capital of Culture

C

ulture’s place in society is so vast it is difficult to define, says culture minister Sam Tanson. “Culture broadens horizons, it can teach empathy, it evokes emotions--both positive and negative. It can have a great impact in difficult historical times.” She says that culture’s power to express dissent and articulate freedom is such that dictators have time and time again showed wariness of allowing culture free reign. “Both individuals and society can benefit from culture,” she says.

New to government after the impressive gains made by her party, Déi Gréng, at the elections in October, Tanson has been in the job for just two months when we speak.

Several players in the Luxembourg culture scene say it makes a refreshing change to have someone in the post who is young, has shown an avid interest in culture and who

actively sought out the portfolio as soon as it became clear she would enter cabinet.

But in times of austerity, around the world government funding for culture is one of the first cuts made to state budgets. Even Luxembourg has suffered from this phenomenon. The share of the budget’s ordinary expenditure dedicated to culture has dropped to just under 1% from a high of 1.3% in 2007, just before the financial crisis.

“But I don’t like to talk about percentages,” says Tanson. “They are misleading because so many things change.” For instance, music teaching has been moved from being the responsibility of the culture ministry and now falls under the budget of the ministry of education. Film and the audiovisual industry have been under the auspices of the ministry of state for years. And assessing the total budget spent on culture is also problematic,

Indeed, Tanson explains that many of the smaller theatres in the grand duchy recently requested additional budget that would allow them to employ an administration manager and thus free up the artists who run the theatres to focus on the creative work.

“So, we shouldn’t talk about the percentage of the budget, but we must ensure that we maintain or even improve the amount of culture being created and shown.”

Meanwhile, the state has approved an additional budget of some €40 million to contribute towards the Esch 2022 - European Capital of Culture project, which sees the grand duchy’s second city become the focus of culture.

Since Esch was first nominated in 2017, the project has been blighted by problems that has seen changes in the leadership of the team. But with Nancy Braun now installed as the general director and

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Culture

“Both individuals and society can benefit from culture.�

Sam Tanson Minister of culture

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SAM TANSON

FEBRUARY/MARCH 2019

A graduate in law from the Sorbonne in Paris, Sam Tanson was a journalist for the Lëtzebuerger Land and RTL before being admitted to the bar. Tanson’s political career with Déi Gréng saw her become the party’s co-spokesperson and its president before she was elected to Luxembourg City council at the 2011 local elections. When her mentor François Bausch entered government in 2013, Tanson was promoted to replace him as deputy mayor of the city. Under the new DP-LSAP-Déi Gréng coalition she was named minister for culture and housing.

Esch-born cultural historian and critic Christian Mosar named the artistic director, Tanson says the team is now really engaged. “They complement each other well,” she says of Braun and Mosar. “They know it is not an easy challenge because so much time has been lost, but I think they are on the road to creating a coherent project that is important for the south of the country.”

Luxembourg has twice before enjoyed status as the European Capital of Culture, once with Luxembourg City in 1995 and again in 2007, when the honour was shared between Luxembourg and the Greater Region--Nancy Braun was the general coordinator of the latter project. Both reigns left their mark and helped boost culture across the country. Tanson hopes 2022 will have the same effect and will also garner international attention, though she thinks the project will be under extra scrutiny from abroad. “Because we are a rich country, the challenge to produce something is even greater.”

Action plan

Last year, the ministry, under the auspices of then culture minister Xavier Bettel and secretary of state for culture Guy Arendt, held a series of consultative meetings with actors from the cultural scene. The result is

a 190-page “Plan de développement culturel” (cultural development plan) that includes a programme of objectives and recommendations. These include suggestions to improve the independence and professional recognition of artists. To this end, the report recommends a change to the law governing social security assistance for artists when they are not working. Tanson says the government is currently examining the law to see what concrete measure can be taken, including a possible reform of the so-called “congé culturel” which allows artists who have a salaried job to take paid holidays to perform. The government is also looking at introducing a special lower VAT tariff for cultural goods and services. “We have to see with the finance ministry how viable that is, and also what sort of leeway we have with European Union regulations,” says Tanson.

Striving to reposition the importance of culture in society requires a focus on education of young people. Closer cooperation between the culture and education ministries is one key, but Tanson explains that getting children more involved with programmes like that put on by the Rotondes is essential. “It is important that all children are given access to culture, not just those whose parents or teachers are interested.”

Appreciating culture is important for personal development, says Tanson. “We return to the question of empathy. Watching a cultural performance can give a child the tools to understanding life experiences that are not similar to their own.” As for the furore the ADR’s Fernand Kartheiser felt when he found out school children had compulsorily watched a play featuring a homosexual kangaroo character, Tanson says she has yet to meet someone who was damaged by access to culture.

Tanson, who has two children aged 5 and 7, has started taking her oldest to classical concerts and to view exhibitions. Her own cultural interests are eclectic and diverse, she says. She is an avid reader and admits that she often throws herself into a book and ends up not getting enough sleep. But she also loves music and theatre, though she doesn’t get to see as much live performance as she would like because of × family commitments.

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On stage

82

Singer-songwriters, punk faves, iconic Chekhov and classical collaborations Pop

Jess Glynne FEBRUARY/MARCH 2019

Jazz

Chilly Gonzales One of the great entertainers on the jazz concert circuit is Chilly Gonzales. The Cologne-based Canadian pianist is a one-time collaborator of Feist (he is cocredited with her hit ‘My Moon My Man’) and Daft Punk, and has also released an album with Jarvis Cocker. A gifted pianist, his solo stuff is cool, delicate and witty, and he is joined on stage by Stella Le Page on cello and vocals, and Joe Flory on drums and vocals.

Den Atelier has landed a scoop in bringing British singer Jess Glynne to their Hollerich venue. One of the finest voices in contemporary pop, Glynne has made records with Clean Bandit (2014 hit ‘Rather Be’) and Rudimental. But in her own right she has landed massive hits with the likes of ‘I’ll Be There’ and ‘All I Am’, making her one of the most successful British female artists of all time. Her powerful voice and heartfelt lyrics, coupled with an unpretentious attitude earned her show in Manchester last autumn a 4-star review.

19 March den Atelier, Luxembourg-Gare

www.atelier.lu

3 March Philharmonie, Luxembourg-Kirchberg

www.philharmonie.lu

Vocal recital

BostridgeMehldau

Glam rock

Steel Panther Throwback to the glam metal of the 1980s, Steel Panther’s parody is so spot on it has fans of the likes of Poison and Mötley Crüe clamouring for anthemic choruses, wild guitar solos and headbanging but melodic riffs. Indeed, the band has appeared alongside The Crüe, Def Leppard and Guns N’Roses. Expect plenty of hairspray and tongue-in-cheek sexist imagery.

18 February den Atelier, Luxembourg-Gare

www.atelier.lu

Ska

The Specials The most influential band of the British ska revival scene in the late 1970s and early 1980s, The Specials have been touring again with three original members (singer Terry Hall, Lynval Golding and bassist Horace Panter).

What’s more, the band is set to release its first album of new material for 20 years in the shape of “Encore”, featuring piano-led single ‘Vote For Me’.

One-time Philharmonie artist in residence Ian Bostridge is joined by acclaimed pianist Brad Mehldau (photo) for a recital of Robert Schumann’s “Dichterliebe” (op. 48) song cycle. Schumann’s music to the 16 poems by Heinrich Heine has been described as having “miniaturist chromaticism and suspensions.”

The programme is completed by a performance of a new work

by Mehldau.

5 March Philharmonie, Luxembourg-Kirchberg

www.philharmonie.lu

31 March

WORDS

Duncan Roberts

www.atelier.lu

Photo § Michael Wilson

den Atelier, Luxembourg-Gare

83

Ry X Ry Cuming returns to Luxembourg to play the confines of den Atelier.

The singer-songwriter, who played a legendary show at the NotreDame cathedral two years ago, has a new album, “Unfurl”, slated for release in February. Cuming cites Jeff Buckley’s “Grace” as an influence, and it is easy to hear echoes of that iconic album in Ry X’s work.

Indie folk

The Tallest Man on Earth

14 March den Atelier, Luxembourg-Gare

www.atelier.lu

Indie rock

Cherry Glazerr Described by Pitchfork as being full of “shredding jams, furious howls, and self-aware swagger”, LA indie band Cherry Glazerr’s second album “Apocalipstick” was one of 2017’s most assured records thanks to the brilliant presence of lead singer Clementine Creevy. Now the trio is about to release new album “Stuffed & Ready”, which already features a great track in lead single ‘Daddi’.

8 April Rotondes, Luxembourg-Bonnevoie

www.rotondes.lu

Oratorio

St. John Passion Sir Simon Rattle conducts the Orchestra of the Age of Enlightenment and a stellar cast of singers as well as the Choir of the Age of Enlightenment in a performance of Johann Sebastian Bach’s oratorio. Bass Roderick Williams sings the Jesus role and Christian Gerhaher is both Pilate and Peter. American theatre director Peter Sellars stages the performance, which is a revival of the acclaimed 2014 production.

4 April Philharmonie, Luxembourg-Kirchberg

www.philharmonie.lu

Swedish singer-songwriter and guitarist Kristian Matsson (aka The Tallest Man on Earth) has completed his “When the Bird Sees the Solid Ground” song cycle and is now touring in support of the project. He has promised to work on a new album (his first since 2015’s acclaimed “Dark Bird Is Home”), but for now is doing what he calls his “real job”, namely playing concerts. Comparisons to Bob Dylan have shaded his career and there is also a hint of Nick Drake in the intricate guitar playing and often plaintive voice which should come to the fore in the solo shows he is currently undertaking.

6 March Rockhal, Esch-Belval

www.rockhal.lu Piano duet

Labèque sisters French sisters Katia and Marielle Labèque have been stars of the classical music scene for close to 40 years. Here they perform Francis Poulenc’s concerto for two pianos and orchestra with the OPL, conducted

by Gustavo Gimeno. Also on the programme are Henri Dutilleux’s “Métaboles” and Rachmaninov’s “Symphonic Dances”.

8 March Philharmonie, Luxembourg-Kirchberg

Photo § Sébastien Grébille

www.philharmonie.lu

On stage

TOP PICK

Introspective

84

Post-punk

Idles FEBRUARY/MARCH 2019

MUSIC ROUNDUP

Den Atelier brings Bristol 5-piece, fierce polemicists Idles to Luxembourg for a gig at Rotondes that promises to be exhilarating.

The band’s brand of post-punk is catchy and brilliantly abrasive.

Singer Joe Talbot delivers his street-smart lyrics with genuine bite, but second album “Joy as an Act of Resistance” is, in his words, “an attempt to be vulnerable to our audience and to encourage vulnerability.”

12 April

www.atelier.lu

www.rockhal.lu

www.deguddewellen.lu

Rotondes, Luxembourg-Bonnevoie

www.atelier.lu

Theatre

The Seagull Jazz

Claire Parsons Duo An acclaimed artist in her own right, Luxembourg-born singer Claire Parsons performs in duo with Israeli guitarist Eran Har Even. The pair create what they describe as “a very intimate and calm atmosphere.” Parsons recently was “best upcoming musician” at the Luxembourg Music Awards.

John Brigg directs a cast featuring some of the finest actors to have graced New World Theatre Club productions over the past two decades as well as relative newcomers in Anton Chekhov’s “first masterpiece”.

Brigg describes the play as “a comedy of frustrated lives, of lost opportunities and the clash between generations in which each character must face their own aspirations and disappointments.”

28 February-3 March Kulturhaus, Mersch

www.nwtc.lu

3 April Kinneksbond, Mamer

www.kinneksbond.lu

Find more events Check Delano’s digital agenda for the latest happenings:

www.delano.lu/agenda

Photos Shutterstock

Veteran indie rockers The Lemonheads play at Rotondes courtesy of den Atelier on 22 February. Indie popsters Bastille play Rockhal courtesy of den Atelier on 8 March and Scottish singer-songwriter KT Tunstall plays den Atelier itself on 30 March. The Rockhal has controversial rapper Nicki Minaj on 20 March followed two days later by a release party from Luxembourg’s very own Seed To Tree. And English-German singer Alice Merton plays on 25 March.

De Gudde Wëllen showcases psychedelic desert blues duo Crayon Sun on 20 February and German jungle pop ensemble Rikas on 6 March.

MUSIC & CULTURE FESTIVAL

METRONOMY -MUSIC-

CAT POWER • BAND OF HORSES IDLES • FLAVIEN BERGER

GRANDBROTHERS • CLAIRE LAFFUT • THE HOLY

RAFTSIDE • CLAIRE PARSONS & URIEL BARTHÉLÉMI • C’EST KARMA -R E A DI NGS -

CATHERINE ELSEN (ILL) • SOPHIE REYER - CULTUR E -

ART & DANCE PERFORMANCES, INSTALLATIONS, DESIGN EXPO, CREATORS & INITIATIVES MARKET, WORKSHOPS, KIDS PROGRAM -FOOD & WI NE -

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LUXEMBOURG CITY SAT, ��th JUNE ���� SIRENSCALL.LU

TRAVEL

Short breaks

FEBRUARY/MARCH 2019

Something for the (long) weekend?

With a slew of public holidays falling conveniently to allow workers to take a “bridge” this spring, the temptation to get away for some rest and recuperation is greater than ever. Delano’s editorial team picks 12 destinations for long and short weekend trips.

1

Milan

1

For designer shopping

Milan has undergone massive redevelopment in recent years, such as the Bosco Verticale (vertical forest)--two residential towers with over 900 trees--one of the biggest European projects of its kind. Impressive cathedral and La Scala aside, Milan is also always a favourite for vintage designer shopping, bookstores and unique bars offering live music and great cocktails. www.luxair.lu

www.easyjet.com

www.turismo.milano.it

Jess Bauldry, Natalie Gerhardstein, Aaron Grunwald and Duncan Roberts

Freiburg

2

For hikes and beer

Enjoy the warmer microclimate and painted facades of the city that serves as the perfect entry point into the Black Forest. The drive to Freiburg is just over three hours and quite a scenic one. Freiburg, with its historical buildings, has plenty of green spaces--not to mention local breweries, some with beer gardens, to quench thirst after a long hike and meet the friendly locals.

Plane: 1¼ hours, car: 7½ hours

WORDS

Car: 3½ hours, train: 4¾ to 5½ hours

www.visit.freiburg.de

Hamburg

3

For culture and cool

Luxair has convenient direct flights to Germany’s coolest city. Check out the programme at the amazing Elbphilharmonie concert hall, take kids to see the Miniatur Wunderland (the largest model train display in the world) and tour five museums along the Kunstmeile. But don’t miss the eclectic array of cafés, bars and music venues in the Sternschanze district. Watching hip football club St Pauli play at home is also highly recommended.

Plane: 2 hours, car: 7 hours, train: 8 hours

www.luxair.lu

www.elbphilharmonie.de

Photo ¢ Shutterstock

86

87

Short breaks

6

5

Photos Shutterstock Gilbert Sopakuwa/Creative Commons Aurelien Guichard/Creative Commons

2

3

Monschau

4

For medieval charm

The charming medieval German town on the border with Belgium is just a 2-hour drive from Luxembourg City. Explore the narrow streets between half-timber houses and the castle (which hosts a summer music festival). Enjoy typical German fare at any number of local restaurants or visit the historical mustard mill to buy all sorts of artisan mustards, oils and vinegars. The local area is also great for hiking and mountain biking.

Car: 2 hours

www.monschau.de

www.senfmuehle.de

Cologne

5

For more than Carnival

They call Carnival the “fifth season” in Cologne; it starts in November but the massive street party (likely the biggest in Germany) takes place this year between 28 February and 6 March. While a fab town for singles and couples, Cologne is also family-friendly.

It’s home to a huge cluster of museums and galleries, plus a slew of Instagram-worthy outdoor spots. Spend some time in the old town; it’s a great area for strolling, browsing and lingering.

4

Koblenz

6

For river views

A statue of Kaiser Wilhelm I dominates Deutsches Eck (German corner) park, where the Moselle river joins the Rhine. The city centre is cosy and easily walkable. Outdoor restaurants fill up fast. Definitely take the Seilbahn (funicular) up to Ehrenbreitstein Fortress; the view gliding over the busy Rhine river is breathtaking. Koblenz is a great base for regional cycling and wine tasting trips. Merits a short trip, but probably not an extended stay.

Car: 2 hours, train: 2½ hours

Car: 3 hours, train: 3½ hours

www.koblenz-tourism.com

www.cologne.de

www.cfl.lu

www.cfl.lu

88

8 FEBRUARY/MARCH 2019

8

7

7

For hidden gems

Don’t be put off by the postcard-perfect look of Petite France (Little France); it is a genuinely charming area, despite being full of tourists.

Explore Strasbourg on foot; start by picking an alley at random. How else will you find hidden gems like place du Marché Gayot?

There’s often a queue to visit the cathedral, and quite a long one to climb up the clock tower. Go ahead and take a boat tour; it really does show the city in another light.

Car: 3 hours, train: 2½-4 hours

www.otstrasbourg.fr

www.cfl.lu

Reims

For champagne tasting 8

If you’re looking for some sparkle, the Champagne region has that in bottles.

Reims boasts a stunning 13th century Gothic cathedral and kilometres of champagne cellars.

But to really get to the heart of this region, head for Épernay, home to Moët & Chandon among others. There are a number of wine tours offered to help explore smaller vineyards.

Besides great food and drink, a major attraction is that the area is not overrun with tourists.

Car: 2½ hours, bus: 3½ hours, train: 3-5 hours

www.reims-tourism.com

www.flixbus.com

www.cfl.lu

Scotland

9

For whisky and golf

Starting April 2019, Ryanair will operate direct flights to Edinburgh, where in August visitors can enjoy non-stop theatre and comedy at the Edinburgh Festival. It’s only a stone’s throw from countless distilleries, romantic ruined castles and breathtaking highland landscapes perfect for rambling. Golfers will certainly want to try out the Links golf course in St Andrews, also home to the university where Prince William met Kate.

Plane: 1¾ hours

www.edinburgh.org

www.ryanair.com

Photos Shutterstock Claudia Schilling/Creative Commons

Strasbourg

9

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www.bcee.lu/leaseplus

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90

FEBRUARY/MARCH 2019

10

10

12

11

10

For the great outdoors

With just 500 inhabitants, Durbuy may be the smallest town on Earth, but it is big on attractions. This medieval Belgian town boasts walks, mountain biking trails, and family-friendly adventure park, as well as opportunities for horse riding and kayaking.

If you tire of the town, nearby there’s also a maze, tennis courts, lakes for water sports and the Euro Space Center and more.

Car: 1¾ hours

www.durbuyinfo.be

Antwerp

11

For art and dining

The Belgian port city has a real fashionable indie vibe. Wander its cobbled streets and dive into quirky cafés and shops en route to the Museum aan de Stroom, where you can not only see art but also picnic on the roof or have 2-star meal at restaurant ‘t Zilte (book well ahead for the latter). Of course, a visit to the Rubens house and museum (now showing his “Massacre of the Innocents”) is also essential.

Travel by train to experience a station regularly featured in the top 10 most beautiful in the world.

Car: 3 hours, train: 4 hours

www.mas.be

www.rubenshuis.be

www.cfl.lu

Crete

12

For ancient history

Crete is a history lover’s paradise steeped in mythology, best known for Knossos palace, once the centre of Minoan culture. It’s an intriguing place where you can visit a beach, hike a gorge, see a Roman necropolis and then have dinner in a cosy courtyard--all in one day. Luxair offers flights from Luxembourg to Heraklion, but it’s worth hiring a car to explore beyond the busy port capital.

Plane: 3¼ hours

www.luxair.lu

www.incrediblecrete.gr

Photos Shutterstock Pixabay (Tolea1)

Durbuy

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Restaurant review

92

FEBRUARY/MARCH 2019

WHAT’S NEW? Buvette at Rotondes The popular lunchtime spot in Bonnevoie has reinvented its menu, well, sort of. Burgers still remain a staple but there are also wraps, Thai wok dishes, steak and the new trend for “bowls”, including plenty of vegetarian options, as well as a selection of plats du jour.

Buvette

El Gato If you work or live in Leudelange, then this new Spanish restaurant is worth checking out. The menu features a selection of traditional tapas, a choice of Spanish ham and cheese platters and pinchos, as well as fish, seafood and meat mains, including the now ubiquitous Tomahawk steak.

Les Copains d’abord Colour me good WORDS PHOTOS

Duncan Roberts Jan Hanrion/Maison Moderne

If, as the saying goes, we eat with our eyes first,

then the warm palette of colours that seems to be the signature of dishes at Les Copains d’abord is a most pleasurable way to satisfy an appetite. The newish restaurant in the old town, tucked just behind the palace, opened at the end of last year--a first location was already well established in Metz. The rue de l’Eau venue has two dining rooms,

a contemporary brasserie like space upstairs (which suffers from the occasional blast of cold air when diners arrive or leave) and a cosier looking cellar. The furnishings and the crockery are discreetly stylish, though not always entirely practical.

But guests are given a warm welcome and the service is for the most part attentive and cordial--we did wait rather longer than necessary before being asked if we would like dessert. Even so, with a full dining room at lunch time, we were still in and out, having enjoyed two courses, in just under 90 minutes. The restaurant has received rave reviews on social media and in the

local press for its service and value for money.

The main attraction at lunch is a plat du jour, which at €14.90 seems reasonable. One of us plumped for this choice, which on our visit was stuffed courgette with sausage meat, served with perfectly cooked rissole potatoes, colourful carrots and salad. For €7 more, the plat can be augmented by a café gourmand with three mini desserts, including a refreshing pineapple smoothie, a well-balanced salted caramel ice cream and a rather disappointing deconstructed chocolate-pear tart.

The regular menu includes some tempting choices, such as a selection of gourmet burgers, casserole dishes, main course salads and steaks. But these were eschewed for one of the specials from the blackboard. A delicately cooked veal entrecôte with morel mushrooms was served with a wonderfully balanced sauce,

www.elgato.lu

a pea purée and a colourful array of carrots and wafer-thin slices of other root vegetables. Accompanied by a very reasonably priced glass of organic pinot noir (from Domaine Oury-Schreiber on the French Moselle), this was a real treat. Dessert, from the board again, was a rich passion fruit cheesecake with a chocolate biscuit base.

The atmosphere is friendly and lively, as one would expect in a brasserie. But, as is so often the case, the experience didn’t quite live up to all the hype. Les Copains d’abord is × good, but not exceptional.

Delano gives it:

24 rue de l’Eau Luxembourg-Centre 2620 0273

www.restaurantlescopainsdabordlux.lu

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Autocars Autocars Emile Emile Frisch Frisch Tél. (+352) Tél. (+352) 49 61 4951-1 61 51-1 www.emile-frisch.lu www.emile-frisch.lu info@ info emile-frisch.lu @emile-frisch.lu 23/01/2019 09:31 30/07/2018 30/07/2018 15:46 15:46

Kids page

94

Encouraging young audiences WORDS

Duncan Roberts

Film Festival’s youth and kids programme is packed with entertaining and educational films for ages 3 and upwards, as well as a series of workshops, conferences and meetings with industry professionals. The festival says its aim has long been to “help children and students gain a better understanding of the image-driven world and of new narrative forms by equipping them with tools to decipher and decode them.”

The festival wants to encourage children as young as 3 years old to get used to going to the cinema and has incorporated a special “My First Movies” section aimed at that age group. These films are often dialogue free, enabling children to enjoy them no matter what their language skills.

The programme includes a special ciné-concert screening of Czech animated film “Pat and Mat Move” (photo) with pianist Cyrille Aufaure.

Luxembourg co-productions

ALSO COMING UP

Picnic with pros

Analysis workshop

Join the jury

The festival’s annual “Picnic with pros” session at the Casino Luxembourg is an interactive meeting at which youngsters can learn about career opportunities in TV and film. It is organised with BTS Cinéma et Audiovisuel and in collaboration with the Centre National de l'Audiovisuel and the Film Fund Luxembourg.

A staple of the Luxembourg City Film Festival is an entertaining and enlightening workshop with The Hollywood Reporter film critic Boyd van Hoeij, who unpicks a familiar film scene by scene. He also holds a series of sessions on film criticism.

Kids aged over 16 can join the festival’s youth jury, which chooses its favourite film from a selection that it watches during the festival. The jury also gets to meet guest directors and members of the other juries.

It also awards the Prix du Jury Jeune – by Kinepolis, at the festival’s prize-giving ceremony.

Entry is free as long as space is available

Registration is compulsory register@luxfilmfest.lu

Three Luxembourg co-productions for older kids worth watching out for at the festival include comedy “Tel Aviv On Fire” about a West Bank checkpoint that inspires a soap opera script. Then there is award-winning animated feature “Funan”, which takes a personal look at the horrors of the Khmer Rouge revolution.

And German superhero drama “Invisible Sue” is about a young girl blessed with the power of invisibility who has to rescue her mother from a kidnapping × conspiracy.

For more information register@luxfilmfest.lu Luxembourg City Film Festival 7 to 17 March Luxembourg City venues

www.luxfilmfest.lu

Photo Cinéma Public Films

FEBRUARY/MARCH 2019

The Luxembourg City Film Festival wants kids to gain an understanding of cinema.

As always, the Luxembourg City

L’Enfant Roi Helios

Index

96

A

F

M

U

FEBRUARY/MARCH 2019

Amazon

30

Facebook

30

Loïc Marziou

52

Guy Arendt

78

Fondsfrauen

70

Theresa May

3

64

Manuela Fröhlich

70

McDonald’s

30

Microsoft

30

Mélanie Molz Kroll

42

Christian Mosar

78

Pierre Moscovici

30

Arendt Regulatory & Consulting Jean Asselborn

3, 40

Atoz

30

Banque de Luxembourg

52

Banque de Luxembourg Investments 68

B Banque Havilland

68

Céline Bardet

40

Lynsey Baxter

42

Beneluxa initiative

8

Xavier Bettel

3, 30, 40, 78

Nancy Braun

78

G Google

30

Pierre Gramegna

30

Grand Duchess Maria Teresa

40

Remi Grizard

52

Tom Habscheid

12

Werner Haslehner

30

François-Kim Hugé

62

Anne Calteux Raluca Caranfil Chamber of Employees

Development

18

Dr Denis Mukwege

40

Nadia Murad

40

11

9 42

J Jean-Claude Juncker

3

30

Oberweis

46

P

K

Déi Gréng

78

Nicolas Deldime

64

Deloitte

62

Andrzej Duda

14

52

R Roxane Rajabali

D

16

S

Zuzanna Karas

14

Patricia Kaveh

68

Marc Schneider

12

Kneip

52

Mohamed Shiha

42

Bob Kneip

52

Stand, Speak, Rise Up!

40

Katrin Kohl

12

Starbucks

30

E Kate Ensor

11

Esch 2022

78

European Commission

14

European Court of Justice

14

European Microfinance Platform

40

T

L Law and Justice party (PiS)

14

Sam Tanson

78

LRI

70

The Spice Collection

16

Luxembourg Financial Sector

Toastmasters

18

64

Stefano Torti

68

Luxembourg Paralympic Committee 12

Miroslaw Tyc

14

Supervisory Commission (CSSF) Luxinnovation

52

30

W We Are Not Weapons of War

40

Women's Forum for the Economy & Society

Muhammad Yunus

Keith O’Donnell

Hugues Prevoo 8

40

University of Luxembourg

40

Y O

H

Human Equine Realised

C

Prince Motiani

Unesco

40

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Auntie Eleanor Free rides

FEBRUARY/MARCH 2019

This month, Delano’s advice columnist answers reader questions on electric cars, what Delano’s competition is up to and Xavier Bettel’s new look.

Dear Auntie Eleanor, prime minister Xavier Bettel has looked quite different in recent photos. Is it just me, or did he just start growing a beard?

Carla in Consdorf

Gentle reader, that prime minister of ours has always been quite a handsome fellow, and the new stubble only adds to his boyishly good looks and charms, if you ask me. I’m not much for social media, but I did take a scroll through his Twitter feed recently where, particularly during his recent socialising at the World Economic Forum in Davos, he definitely has more than a five o’clock shadow. But in terms of when he started growing the beard? It’s hard telling. A bit of stubble was already visible in early December, but by early January it looked like a proper beard was developing. I just hope his beard won’t reach the epic proportions of David Letterman’s.

Dear Auntie Eleanor, I’ve been hearing a lot about free public transport.

What’s the big deal?

Minnie in Merl

Gentle reader, indeed, nearly all public transport will be free in Luxembourg starting in March 2020. For some reason, you’ll still need to shell out for first-class train carriages. Before you say ‘no

one in Luxembourg pays for public transport now’, ticket inspectors find about 90% of passengers do. Will the policy get people out of their cars? About 230,000 people currently take the bus, train or tram weekdays, but that’s including students, the elderly and disabled. The vast majority of commuters drive, so even if a small number take up the offer, it could be a nice improvement. Capacity is slowly but surely rising, but when’s the last time there was an empty seat next to you during peak hours? Congrats to the government for the international publicity coup, but a politically unpopular move like hiking parking fees or a congestion charge would be much more effective.

efficient the battery. If you’ve got deep pockets (and if you’re considering buying an electric car then you probably do), you might like to consider BMW’s new Futurelight concept, a trailer-camper that looks like the love child of a Sinclair C5 and a tiny house. No space to swing a cat in but if you’re towing it with a Smart, you’ll take up less space in the Auchan car park than most SUVs. Happy driving!

Dear Auntie Eleanor, I saw recently on the website of another English-language publication a story about sofas being dumped in a field somewhere in the north of Luxembourg. Why doesn’t Delano cover such groundbreaking stuff? And is sofa dumping just a northern phenomenon?

Gerald in Godbrange

government subsidies are being handed out left, right and centre (covering the entire political spectrum ensures “plurality”, allegedly). Some media clearly think photos of abandoned sofas and articles providing condescending advice on etiquette in an elevator will gain them an audience. As for sofa dumping, I don’t think it will ever compete with that other great north of Luxembourg pastime, cow pat bingo. Maybe that “other” news site should sponsor a national cow pat bingo contest but use the male of the species instead. The resulting BS would perfectly match the tone of some × of its reportage.

Gentle reader, competition is indeed fierce in the media

business, even when

Dear Auntie Eleanor, can you tow a caravan with an electric car?

Marieke in Maastricht

Gentle reader, you would expect the brainiacs churning out these new-fangled modes of transport would have found a way to rid our roads of caravans for good. It seems not. Although very few 100% electric cars are certified for towing, when it comes to electric hybrid plug-ins, the choice is considerably larger.

It all comes down to the weight of the electric battery-the heavier the car, the less

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