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OECD Territorial Reviews: Luxembourg 2007

image of OECD Territorial Reviews: Luxembourg 2007

In the short span of just a few decades, Luxembourg has moved from a steel-based economy to one more broadly based on financial services.  But being nestled between three other countries, each with their own infrastructure and development issues presents challenges.  This review examines the economic trends and disparities within the region, including under-exploited assets.  It makes recommendations regarding planning, the urban-rural balance, housing and land policy, transport, and R&D and education.

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Multilevel Governance and Co-ordination

Given the recent economic and demographic trends in Luxembourg, the Grand-Duchy now has to face a major territorial development challenge: how can it ensure a better balance of spatial development, promoting the assets of the different regions, when the bulk of the country’s population and an increasing percentage of jobs and the country’s wealth are concentrated in Luxembourg City? It is seeking to respond to that challenge with an innovative approach to territorial development that integrates “Regional Plans” in each of its six Planning Regions with “Sectoral Plans”, which should enable it to integrate territorial development concerns into different policies (see previous Chapter). Implementing a process such as this inevitably takes time and the governance of that process will be crucial to its future success. The establishment of the Planning Regions – purely functional bodies with no administrative powers – will have to reckon with the strong tradition of independence among the communes and the major powers devolved to them in terms of economic development.

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