Blog: Brexit helps Luxembourg thrive after abandoning Swiss-style secrecy – The Telegraph

From far and wide they came to entrust their money to this picture postcard piece of European hinterland, perilously carved out from the confluence of borders between Germany, France and Belgium.

The principality was also key to a number of elaborate tax avoidance schemes involving profit dumping by major multinationals. This too has been dismantled under pressure from Europe and the United States 

It’ll be a disaster, a catastrophe, many bankers complained at the time. Luxembourg was losing its USP, and once gone, there would be nothing left to attract business and finance.

How wrong they were. In the event, it turned out to be the very reverse. Luxembourg has continued to grow and prosper regardless, not just as a country, but specifically as a financial centre. 

By the end of 2021, private banking deposits had nearly doubled to €600bn (£530bn) from the levels that ruled just before the banking secrecy laws were abandoned. 

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