Luxembourg Country Profile

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Business Corruption in Luxembourg

Luxembourg

The Luxembourg country profile aims to provide companies with an analysis of how corruption affects the country’s political environment and business climate. Throughout the profile, readers can find detailed descriptions of the country's efforts in curbing corruption, corruption-related legislation, risk-prone sectors and industries and more. This profile's General Information chapter provides an overview of anti-corruption activities and corruption risks in relation Luxembourg’s political, business and regulatory environments. Government corruption has been pointed out as an issue to be addressed, through the establishment of a preventive framework for Parliament member and government officials. Furthermore, several corruption cases have revealed a conflict of interest between the private and the public sector, an aspect that has tainted transparency in the country. Yet, efforts to step up the fight against corruption have also characterised the government’s agenda and monitoring reports, such as the one released by GRECO, have applauded these efforts. The following activities are some of the reasons why Luxembourg has managed to curb corruption successfully:

  • Luxembourg has initiated steps to make the office of the public prosecutor independent from the judiciary, thus increasing transparency within the administration.
  • The government has addressed the issues of gifts and advantages to MPs, conflicts of interest and asset declarations and proposed to set a code of conduct for parliamentarians to outline regulations around these areas.
  • A draft law addressing issues such as asset declaration, gift giving, etc. has been adopted in 2013 and is expected to enter force in 2014. The law will also set up an advisory committee that will monitor the implementation of the provisions included in the draft.

However, the government still faces challenges in curbing corruption, including:

  • The lack of a legal framework for the disclosure of assets for public officials.
  • Public ministers and civil servants are legally allowed to hold positions in private companies and benefit from the revenue of their activities.
  • Luxembourg lacks comprehensive legislation that applies to the protection of whistleblowers.

Detailed descriptions of the level of corruption in a number of sectors are outlined in the profile's Corruption Levels. For a more detailed analysis of government, media and civil society anti-corruption activities, visit the Public Anti-Corruption Initiatives and Private Anti-Corruption Initiatives chapters.

 

Publication date: December 2013

Data verified by: GAN Integrity Solutions

European Commission