Taoiseach Micheál Martin is due to travel to Luxembourg to meet the country’s Prime Minister Luc Frieden, as part of a two-day visit to the grand duchy.
Both leaders will discuss economic issues, including European competitiveness and EU-US trade negotiations.
They will also discuss the current situation in both Ukraine and Gaza.
Speaking ahead of the visit, the Taoiseach said Ireland and Luxembourg have “a shared interest” in the competitiveness agenda and deepening capital markets in Europe.
“Bilateral relations between Ireland and Luxembourg are excellent and we are like-minded partners on many issues,” he added.
Mr Martin and Mr Frieden will also discuss proposals for the EU’s next seven-year budget for 2028 to 2034 following last week’s draft proposal by the European Commission for a €2 trillion budget.
Two-way trade between Ireland and Luxembourg is worth about €3.5 billion each year, a majority of which is attributed to financial services.
Like Ireland, Luxembourg’s open economy and relatively low corporate tax rates have attracted international financial institutions and global investment funds to domicile in the jurisdiction for decades.
Both countries’ economies would be highly susceptible to a US-EU trade war in the event that it spirals to include retaliatory tariffs on digital services.
US President Donald Trump has threatened 30% tariffs on imported goods from the EU, if a trade deal is not struck by 1 August.
But Reuters reported yesterday that US and EU officials are discussing a broad 15% tariff on EU imports.
During his visit, the Taoiseach will also meet with representatives of Irish businesses in Luxembourg and hear from Irish community representatives.
More than 2,500 Irish citizens live and work in Luxembourg, a community that has doubled in size during the past 10 years, according to Ireland’s embassy to Luxembourg.
Tomorrow, the Taoiseach will hold a meeting with Nadia Calviño, President of the European Investment Bank (EIB).
They will discuss Ireland’s ongoing partnership with the bank and its role in supporting European competitiveness by investing in infrastructure projects.
Mr Martin described the EIB as a “valued partner” that finances approximately €1bn for water, housing and energy projects in Ireland each year.
