Luxembourg’s labour market is experiencing a surge in artificial intelligence adoption, with firms increasingly integrating AI tools into business operations, but the pace of workforce readiness varies across sectors. Recent industry surveys show a substantial share of companies are actively using AI and generative AI to boost productivity, especially in manufacturing, ICT and service industries. Despite this momentum, structural challenges remain significant. Many firms struggle with data accessibility, in-house expertise shortages, and the lack of high-impact use cases, highlighting a gap between ambition and practical deployment. Analysts note that without improved data governance and talent development, Luxembourg may not fully capture the benefits of AI transformation. Addressing these gaps has become a government priority. National and EU-backed initiatives are expanding digital skills training, such as the Digital Skills and Jobs Coalition Luxembourg platform, aimed at equipping workers with the competencies needed for AI-related roles and keeping pace with evolving demand. Experts also stress the importance of avoiding labour market polarization — where high-skill AI professionals benefit while other workers are displaced — by investing in lifelong learning and targeted upskilling programmes that prepare a broader segment of the workforce for AI-augmented jobs. If these efforts succeed, Luxembourg’s labour market could not only absorb AI technologies responsibly but also harness them to generate new jobs, increase productivity and reinforce the country’s position as a competitive digital economy in Europe. Read more: ludci.eu/magazine/is-luxembourgs-labor-market-ready-for-ai-navigating-the-future-of-work-in-the-grand-duchy ............................................................................................................................................................................................................................................................ Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.

Luxembourg’s Parliament has approved a far-reaching reform of the carried interest tax regime, marking what many legal analysts call the most significant change in more than a decade. On 22 January 2026, lawmakers adopted Bill No. 8590, designed to modernize tax treatment for performance-based income tied to investment funds. Under the new framework, carried interest is divided into two main categories. Contractual carried interest — performance pay not linked to equity stakes — is now subject to a lower tax rate of up to around 11.45 %, while participation-linked carried interest can be tax exempt if certain conditions are met, such as holding a qualifying participation in a fund for more than six months. Studies show this aligns Luxembourg’s regime with other competitive international markets. A key change from previous law is the broadening of who can benefit: the reform extends preferential treatment beyond fund managers to include employees, directors, partners or service providers connected to alternative investment funds. This addresses a longtime industry concern and reduces legal ambiguity about eligibility. The reform also removes old constraints such as the requirement that investors must be paid back before carried interest holders receive their share, making the regime suitable for deal-by-deal arrangements common in modern fund structures. Legal experts argue this flexibility enhances Luxembourg’s attractiveness for front-office talent and private capital. Supporters say the new rules provide greater legal clarity and competitive edge for Luxembourg’s fund industry, bolster the country’s position as a leading European hub for alternative investment funds, and help draw and retain skilled professionals in a high-value sector. Read more: stibbe.com/publications-and-insights/luxembourg-adopts-comprehensive-carried-interest-tax-reform ............................................................................................................................................................................................................................................................. Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.

Luxembourg is pushing forward from theoretical AI regulation to practical implementation, bringing together business leaders, policymakers and regulators in a major event centred on Europe’s new AI Act. The “AI Act in Action” conference on 20 January 2026 focused on helping companies understand how to comply with the fresh EU-wide rules and apply them effectively in everyday operations.  Held at the Chamber of Commerce with over 300 participants, the event stressed that AI should not be seen merely as a compliance burden, but as a driver of innovation and competitiveness. Representatives from government, the private sector, and regulators shared use cases and practical tools to help firms navigate risk assessments, technological choices, and compliance responsibilities. Speakers discussed how the AI Act’s risk-based framework applies to different roles in the AI ecosystem, from developers and distributors to users, and explained forthcoming support mechanisms such as the AI Act Single Information Platform and the AI Act Service Desk, aimed at easing conformity challenges. The event also examined the importance of “AI literacy” — ensuring workers at all levels have the skills to safely and responsibly deploy AI — and how Luxembourg intends to build a national governance model that aligns with European requirements while supporting innovation.  Officials framed the conference as an opportunity to set the tone for future AI deployment in Luxembourg. They emphasized that strong cooperation between regulators, industry experts, and businesses can make the AI Act a springboard for responsible growth and help turn compliance into a competitive advantage.  Read more: gouvernement.lu/en/actualites/toutes_actualites/communiques/2026/01-janvier/20-margue-ai-act.html .................................................................................................................................................................................................................................................................... Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

Major food companies Nestlé, Danone, and Lactalis have launched a large-scale recall of baby formula products across multiple countries following a toxin alert. The recall is linked to concerns over cereulide, a toxin produced by certain bacteria that can cause vomiting, abdominal pain, and serious health risks, particularly for infants. After laboratory tests detected potential contamination, companies acted by withdrawing specific batches from shelves and advising parents to stop using affected products immediately. Health authorities in Europe and other regions are closely monitoring the situation, while investigations continue to determine the source of the contamination and its potential impact. The incident has raised wider questions about food safety standards, quality controls, and supply-chain monitoring in the global infant nutrition industry. Read more: euronews.com/health/2026/01/22/global-baby-formula-recall-nestle-danone-lactalis-pull-products-after-toxin-alert .......................................................................................................................................................................................................................................................... Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

The Luxembourg government has unveiled new initiatives aimed at improving migrant integration and reinforcing social cohesion throughout the country. These measures come as Luxembourg continues to grow as one of Europe’s most diverse nations. The initiatives include three national action plans focusing on social inclusion, the fight against racism, and equal opportunities for all residents, regardless of origin or background. Authorities plan to work closely with municipalities, NGOs, and community organisations to ensure the measures are effective at the local level. Special attention will be given to education, employment access, and social participation. One key element of the plan is the introduction of practical tools to help local governments identify and address discrimination, while also promoting dialogue between different communities. The government hopes these efforts will strengthen trust, reduce social tensions, and ensure that migrants feel fully included in Luxembourg’s social and cultural life. Read more: home-affairs.ec.europa.eu/news/new-initiatives-promote-migrant-integration-and-social-cohesion-luxembourg-2026-01-22_en ............................................................................................................................................................................................................................................................. Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.

Luxembourg has officially selected Eva Marija as its representative for the Eurovision Song Contest 2026, which will be held in Vienna, Austria. The announcement has generated excitement among Eurovision fans, as the country continues to strengthen its comeback in the competition. Eva Marija won the Luxembourg Song Contest 2026, the national selection event, with her song “Mother Nature.” Her performance stood out for its emotional delivery, modern sound, and strong stage presence. Both the professional jury and the public vote placed her at the top, confirming broad support for her entry. The song carries an environmental message, which resonated strongly with viewers and judges alike. Luxembourg’s participation is closely watched, as the country returned to Eurovision only recently after a long break of more than 30 years. Each new entry is seen as part of rebuilding its musical identity on the European stage. Eva Marija will now prepare for the international contest, where she will compete against artists from across Europe in hopes of reaching the grand final. Read more: https://www.eurovision.com/stories/eva-marija-luxembourg-vienna-2026/ .................................................................................................................................................................................................................................................................... Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at www.luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.

Luxembourg may be one of Europe’s smallest countries, but it stands out in many remarkable ways. Tucked between France, Germany, and Belgium, this landlocked nation plays an outsized role on the global stage thanks to its strong economy, international institutions, and rich cultural mix. One unique fact about Luxembourg is that it is the world’s only remaining Grand Duchy, ruled by a Grand Duke. It is also a founding member of the European Union and hosts key EU institutions, making it one of Europe’s political hubs despite its compact size. Luxembourg is officially trilingual, with Luxembourgish, French, and German used in daily life, government, and education. This multilingual culture reflects the country’s diversity, as nearly half of its residents are foreign nationals from across Europe and beyond. Economically, Luxembourg is among the richest countries in the world by GDP per capita, driven by finance, technology, and innovation. It is also known for its high quality of life, strong social security system, and excellent public services — including free public transport nationwide, a rare global feature. From medieval castles and scenic valleys to a modern skyline and global influence, Luxembourg proves that size doesn’t define impact. It’s a country where history, progress, and multicultural living come together seamlessly. 🇱🇺 ...................................................................................................................................................................................................................................................................... Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

Luxembourg’s Cabinet met on 23 January 2026 under Prime Minister Luc Frieden to discuss current political, European, economic, social, and financial issues. A major decision from the session was adjusting the state compensation contribution for 2026 to €88 million, ensuring stability in electricity price support schemes for households.  The government also approved new grand-ducal regulations for collector coins, updated the consumer price index weighting, and modernised primary education curricula, with full details to be announced later.  Other measures included refining medical services coverage and zoning rules for a fuel storage site in Bettange-sur-Mess, as well as backing a consumer protection agreement for 2026.  Read more: gouvernement.lu/fr/actualites/agenda.gouvernement2024+fr+actualites+toutes_actualites+communiques+2026+01-janvier+23-conseil-gouvernement.html ..................................................................................................................................................................................................................................................................... Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

Luxembourg’s national eHealth platform eSanté experienced temporary login problems on 23 January, affecting users trying to sign in using Luxtrust Mobile or Scan authentication methods. This technical glitch made key services — including the Shared Care Record and electronic vaccination cards — momentarily unavailable for patients and health professionals.  The government’s health and social security agencies say the issue stemmed from a compliance failure with the authentication system and confirmed teams are actively working to restore full access. Importantly, users can still sign in using a Luxtrust Smartcard or standard login with ID and a one-time password while the problem is fixed.  Service updates and help desk contacts are being shared for those needing assistance over the weekend hours.  Read more: gouvernement.lu/fr/actualites/toutes_actualites/communiques/2026/01-janvier/23-perturbations-connexion-esante.html .......................................................................................................................................................................................................................................................................... Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

The Ministry of Health and Social Security in Luxembourg has published its latest weekly figures on respiratory infections, showing continued activity of flu, COVID-19, and respiratory syncytial virus (RSV) across the country. During the week of January 12–18, thousands of influenza cases were reported, with a notable rise compared to the previous week. COVID-19 cases also climbed modestly, and RSV — a virus that commonly affects young children — continued spreading, with more than half of RSV infections occurring in kids under ten. Health authorities remind the public that seasonal respiratory infections are still circulating and to remain vigilant. The government’s weekly retrospective highlights that most influenza-A types dominated lab reports, while several COVID-19 variants, including XFG and NB.1.8.1, were identified among new cases. Officials emphasise vaccines remain available and effective in reducing severe outcomes, especially for older adults and vulnerable groups. Basic preventative measures — like frequent handwashing, covering coughs and sneezes, and staying home when ill — continue to be recommended to reduce the spread of these infections. Authorities also remind residents that flu and COVID-19 vaccination remains an important tool to protect at-risk individuals during the respiratory season. Read more: gouvernement.lu/fr/actualites/agenda.gouvernement2024+fr+actualites+toutes_actualites+communiques+2026+01-janvier+22-infections-respiratoires.html ..................................................................................................................................................................................................................................................................... Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.