Bilateral relations and regional cooperation

With the support of the diplomatic and consular network, the Directorate for European Affairs and International Economic Relations (D2) supports the development of bilateral relations with the countries of the European Union, EFTA, EU candidate countries, as well as Andorra, Monaco, the United Kingdom, San Marino and the Vatican, in close consultation with the relevant ministries and representatives of the public and private sector. It is responsible for the overall coordination of bilateral relations with the above-mentioned countries, in consultation with other ministerial departments.

The Directorate ensures the coordination of negotiations of international agreements with third countries, in support of the competent ministries, in the fields of aviation, social security, investment protection and promotion, and the avoidance of double taxation.

The Directorate coordinates bilateral cross-border issues in close consultation with the Department of the Greater Region of the Ministry of Family Affairs, Solidarity, Living Together and Reception of Refugees, which is responsible for institutionalized multilateral cooperation within the Greater Region. In this capacity, the Director for European Affairs and International Economic Relations chairs the Inter-ministerial Coordination Committee for Cross-Border Cooperation (CICT), which organises the consultation with the ministries whose competences and resources will be particularly invested in projects that are envisaged in the context of the neighbourhood diplomacy. The Committee serves as an internal forum for the regular exchange of views between ministerial departments and constitutes the reference governance instrument at the inter-ministerial level for developing a coherent cross-border cooperation policy.

At the CICT, major meetings with neighbouring countries are prepared, among other things. Indeed, Luxembourg has formal forums with neighbouring countries and regions, some of which are exclusively dedicated to cross-border cooperation.

• With the Länder of Saarland and Rhineland-Palatinate, Luxembourg holds bilateral consultations between governments within the framework of gemeinsame Kabinettssitzungen (joint cabinet meetings). These are prepared in advance by steering committees (Lenkungsgruppen).
•  With Belgium, the Convention establishing the Belgium-Luxembourg Economic Union (UEBL) was concluded on 25 July 1921. On 23 May 1935, the Convention was supplemented by three other conventions, which were themselves modified in 1963: (a) the convention on financial and monetary matters; (b) the convention establishing a common regime for the regulation of imports, exports, and transit; c) the convention establishing a special revenue community concerning excise duties on alcohol. In 1963, the provisions of the UEBL were revised to take into account the entry into force of the EEC and Benelux. The UEBL Convention was amended in Brussels on 18 December 2002, allowing Luxembourg and Belgium to extend their collaboration beyond purely economic and monetary areas. The renewed Convention thus provides the necessary framework for enhanced political and administrative cooperation, particularly in the areas of customs and excise, justice, citizen security, and health.
• One of the main operational mechanisms of the UEBL is the Belgo-Luxembourg Administrative Commission (CABL), which monitors files and prepares meetings at the ministerial level. The CABL, which generally meets twice a year, is the main operational mechanism of the UEBL and ensures collaboration between the two administrations. The CABL is also involved in preparing the so-called "Gäichel” bilateral meetings, during which the Belgian and Luxembourg governments organise a joint council of ministers bringing together ministers active in bilateral or international cooperation.
• Luxembourg has also endeavoured to create new meeting formats with the federated entities of Belgium at the civil servant level. The cooperation agreement between Luxembourg and Wallonia of 6 May 1999 is the legal basis for direct exchanges between the Belgian federated entity and Luxembourg. Furthermore, the Grand Duchy initiated a steering committee between Luxembourg and Wallonia in 2021. Since 2002, there has also been a cooperation agreement between Luxembourg and the German-speaking Community. The Cooperation Agreement with the Flemish Community and the Flemish Region was signed in 2000. The Convention establishing the Intergovernmental Commission for the Strengthening of Franco-Luxembourg Cross-Border Cooperation (CIG) was signed on 26 January 2010. It is the only structure that Luxembourg has with one of its neighbouring countries at a bilateral intergovernmental level exclusively dedicated to consultations, coordination, and joint action targeting the cross-border area and territory. The CIG meetings are prepared within the steering committee meetings and thematic working groups. The Director of the Directorate of European Affairs and International Economic Relations co-chairs the CIG steering committee together with the Prefect of Moselle.

On 5 September 1944, Belgium, the Netherlands and Luxembourg signed the Customs Convention for the creation of a customs union, following the Monetary Convention of 21 October 1943 which fixed the exchange rate between the Belgian-Luxembourg franc and the Dutch guilder. The Benelux Customs Convention entered into force on 1 January 1948.

The Benelux Economic Union was established by the Treaty of 3 February 1958 for an initial period of fifty years. Its aim was to broaden and deepen economic cooperation between the three countries, in particular by enabling them to adopt a common financial and social policy. The treaty establishing the Benelux Economic Union came into force on 1 November 1960.

Thus, the Benelux played a pioneering role in strengthening European cooperation. Indeed, some areas of cooperation that were launched by the Treaty of 1958 were so successful that their application was extended to the European level. This applies in particular to the free movement of persons (Schengen), the internal market (economic union) and police cooperation.

In view of the expiration of the 1958 Treaty after 50 years and in order to give new momentum to the Benelux cooperation, the Treaty revising the Treaty establishing the Benelux Economic Union was signed in The Hague on 17 June 2008. Under this treaty, the Benelux cooperation now focuses on three main themes: the internal market and economic union, sustainable development, and justice and home affairs. It came into force on 1 January 2012. In addition to continuing the Benelux cooperation as a laboratory for Europe, the new Benelux Treaty also gives the Benelux the opportunity to extend cross-border cooperation by concluding agreements with other states or regional groupings of states or with neighbouring Benelux regions or entities.

In 2022, Luxembourg assumed the presidency of the Benelux Union Committee of Ministers for the fourth time. This year marked the 10th anniversary of the renewal and deepening of this exemplary cooperation in Europe, which continues to play its full role as a laboratory, model, and incubator of European integration.

The Luxembourg Presidency focused on the following three horizontal priorities:

• Emerging stronger from the pandemic
• Working for a green, safe, and competitive Benelux
• Promoting synergies with neighbouring regions

More information: https://www.benelux.int/fr/

The Directorate 2 finances projects in the field of economic and technical assistance and international training activities in partner countries.

This assistance takes the form of the transfer of scientific or technical knowledge tailored to the needs of the beneficiary countries.

The projects are anchored in various sectors in which Luxembourg has specific expertise such as European law, higher education, research and innovation, legal aid, and support for the development of democracy in transitioning countries.

The selection criteria for these projects are directly linked to the missions of the Directorate for European Affairs and International Economic Relations, namely the strengthening of relations with third countries with which Luxembourg could develop economic ties, as well as the development of closer relations with European countries that are in a process of rapprochement with the EU. Thus, Luxembourg contributes to the rapprochement of EU candidate countries through bilateral technical assistance projects and training in the implementation of the acquis communautaire.

The projects are implemented through Luxembourgish and European partners.

The MFA study or research scholarships awarded to students who are following a Master's degree course at the University of Luxembourg are intended to foster the deepening of the latter's bilateral relations with institutions of excellence in third countries.

The training provided by the European Institute of Public Administration (EIPA), supporting the efforts of the candidate countries for European accession towards the adoption of the acquis communautaire, is a means of strengthening bilateral relations with these countries whose economies are destined to integrate progressively into the internal market. By sharing Luxembourg's experience in the field of European integration with third countries, the MFA is able to provide useful and targeted assistance while promoting a positive perception of Luxembourg as a country deeply attached to European values.

As a member of the Council of Europe, Luxembourg participates in several technical assistance projects. The mission of the Human Rights Trust Fund is to provide funding for efforts by states (mainly the Western Balkans, Caucasus countries...) to fulfil their obligations under the European Convention on Human Rights and other Council of Europe human rights standards.

Finally, the Directorate directly supports non-governmental organisations (NGOs) in their projects related to the principles of the rule of law, the fight against corruption, the approximation to the acquis communautaire, the promotion of gender equality and the fight against global warming.