H.E. Mr. Patrick Engelberg:

I thank Senator Hayden for her questions. On Greece, we did well to have the right instrument to make our banking sector more robust and cut the link with the sovereign, but the Greek problem is much broader. Let us not to prepare for the worst but if there were an eventual default in Greece, the eurozone and EU banks would be affected. We do not know to what extent because we do not know what provisions have been made. I expect provisions have already been made in various countries. The instruments we have in the eurozone should help us overcome it but, nevertheless, it would be a difficult moment for the entire banking world and not only in the EU because we know the US and China are looking at the situation in Greece with great concern. It would have a global impact.

Luxembourg has made social measures its second priority because our country is very much based on social cohesion. We have placed it so high on our priority list because we believe it is important to have a strong social cohesion policy nationally and we feel it is necessary in the EU to show citizens we also care about this aspect and not only about austerity policy, which has been important and essential to introduce new discipline in our finances. We also need to take care of the needs of European citizens. This does not mean we focus only on welfare benefits or giving more money. As we discussed earlier, it also means investing in education, human skills and human capital and creating jobs. The best way to alleviate poverty is to make it possible for those who are excluded from the labour market to access decently paid jobs. This is the best solution we can propose to fight poverty.

I take Senator Hayden's point on SMEs in Ireland. They are comparable to SMEs in Luxembourg where the companies are also very small. One of our main arguments on Capital Markets Union is it will allow us a means to access financing via the capital markets and not only via lending from the banks, which at times has proven to be more difficult. I imagine this point on the variety of structures of SMEs is taken into account in the ongoing reflection. Luxembourg is very much involved in and committed to Capital Markets Union, but we know it will be a medium and long-term endeavour and not something which will be done by the end of the year.

On Brexit, Senator Hayden is right to point out some of the themes and issues in our programme are more likely to suit making the EU leaner, more fit, less bureaucratic and more efficient and other parts of our programme might be less attractive. That is how it is. Luxembourg has its own EU agenda, because we are a very committed and engaged member state and we want to make progress on European integration. I did not mention that Luxembourg is in favour of an EU public prosecutor, which is also something not desired by other member states.