Economic and Monetary Union; EUA; ECU; Eurco; Euro; Luxembourg Financial Centre; European Investment Bank; Luxembourg Stock Exchange; Kredietbank Luxembourgeoise SA; Eurobonds; Pierre Werner; Robert Triffin; François Colin; Edmond Israel; Constant Franssens; Philippe Duvieusart; The Werner Report; Belgian- Luxembourg Economic Union; Small States; Monetary innovation; Luxembourg and European integration history; Jacques Santer; Jean-Claude Juncker
Abstract :
[en] The Luxembourg international financial centre developed considerably during the 1960s, propelled by several factors including concerted government policy, flexible regulation and a willingness to harness opportunities at international level. The decision to establish various Community institutions (the ECSC High Authority) and European funding institutions (EIB) in the country also had a decisive impact. The currency union with Belgium and the absence of a Luxembourg Central Bank made these developments all the more significant. At the same time, Luxembourg stepped up its engagement in the European monetary integration, especially through the involvement of the Finance Minister and Prime Minister Pierre Werner in theoretical discussions on a common (single) European currency, and also through a number of “practical experiments” carried out by several financial institutions, including the LuxSE, EIB and KBL. Drawing on archives and oral history sources, this paper aims to illustrate the complexity and originality that characterised the development of the conceptual, political and regulatory context in Luxembourg in the 1960s-1990s, in what can be seen (via the EUA, ECU, and Eurco) as a sui generis experiment and preparation for EMU.
Research center :
Luxembourg Centre for Contemporary and Digital History (C2DH) > Contemporary European History (EHI) European University Institute, Florence Alcide De Gasperi Research Centre, EUI Florence
Disciplines :
General economics & history of economic thought Finance Political science, public administration & international relations Arts & humanities: Multidisciplinary, general & others
Author, co-author :
DANESCU, Elena ; University of Luxembourg > Luxembourg Centre for Contemporary and Digital History (C2DH) > Contemporary European History
CHENG, Anqi ; University of Luxembourg > Luxembourg Centre for Contemporary and Digital History > Contemporary History of Luxembourg
External co-authors :
yes
Language :
English
Title :
The Luxembourg financial ecosystem and the European monetary innovation. Case study on KBL, LuxSE and EIB (1957-1990) (improved version of the paper)
Alternative titles :
[fr] L'écosystème financier luxembourgeois et l'innovation monétaire européenne. Etude de cas sur la KBL, LuxSE et la BEI (1957-1990) (version améliorée de l'article)
Original title :
[en] The Luxembourg financial ecosystem and the European monetary innovation. Case study on KBL, LuxSE and EIB (1957-1990) (improved version of the paper)
Publication date :
10 October 2025
Number of pages :
44
Event name :
Businesses, Banks and the Making of Europe’s Economic and Monetary Union, 1957-1992 - Research Workshop
Event organizer :
European University Institute, Florence Alcide De Gasperi Research Centre, EUI Florence
H2020 - 716849 - EURECON - The Making of a Lopsided Union: Economic Integration in the European Economic Community, 1957-1992
Funders :
ERC - European Research Council European Union
Funding number :
716849
Funding text :
The conference is initiated by the ERC funded research project EURECON: The Making of a Lopsided Union: Economic Integration in the European Economic Community, 1957-1992 led by Professor Emmanuel Mourlon-Druol (grant agreement No 716849).
The project EURECON "The Making of a Lopsided Union: Economic Integration in the European Economic Community, 1957-1992 led by Professor Emmanuel Mourlon-Druol has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No. 71684)
