The post-COVID-19 period is going to be challenging

Kanchi Batra, Business Editor, The Diplomatist conducted a written interview with H.E. Mr. Jean Claude Kugener, Ambassador of the Grand Duchy of Luxembourg to India on issues including the current COVID-19 situation, common interests of Luxembourg and India in the international sphere, the future of the India-EU Free Trade Agreement and on the Luxembourg-India cooperation in the steel sector. Ambassador Kugener also gave a positive evaluation of Luxembourg’s economy and notes that the country is considered an attractive destination for Indians.

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The whole world is affected by the Coronavirus. How much impact has the Coronavirus outbreak had, thus far, in your home country?

Luxembourg has also been severely affected since the confirmation of the first case of COVID-19 on 29 February. This pandemic has already caused more than 4000 confirmed positive cases and 110 deaths. The average age of the deceased people is 84 of which 66% died in hospital. Globally, Luxembourg ranked 5th in terms of positive recorded cases per 100.000 citizens. An unprecedented crisis and on 18 March, the Prime Minister declared the state of emergency and the Government has taken a number of strong measures.

Luxembourg’s Statistics Office STATEC indicated that the GDP shrank already by 6% and that the unemployment rate was 6.9% in April, a 27% increase compared to 2019. With sound public finances reaffirmed with the “AAA” rating by all major credit rating agencies, the Government adopted different measures totaling approx. 17,5% of the GDP to launch an unprecedented economic stabilization program. The program includes among other immediate financial assistance to help businesses meet their liquidity needs and supporting companies in getting bank loans through state guarantees.

With its “lockdown Exit strategy”, the Government is partially lifting the national lockdown in three different phases and primary schools, restaurants, cafés, and pubs have recently re-opened with the required sanitary rules and social distancing recommendations. Among the various measures, 50 free surgical masks have been distributed to every citizen, but the situation is far from normal and we do hope that the overall situation is going to improve progressively during the coming months.