Lawmakers have introduced new measures to tackle a surge in digital violence and cybercrime, discussed yesterday in the Chamber of Deputies’ Justice Committee, after the Financial Intelligence Unit (CRF) warned attacks have grown in frequency and sophistication and that stolen funds are rarely recovered unless action is taken within 24 hours. Bill 8722 would let the CRF share suspicious account and cryptocurrency address information with banks, while Justice Minister Élisabeth Margue has presented bill 8734 to criminalise non-consensual distribution of explicit images, cover deepfakes and coercive digital control, and launch a youth-focused awareness campaign.
The International Monetary Fund has warned Luxembourg’s prolonged slowdown may be structural after three years of underperforming the euro area, cutting its 2026 growth forecast to 1.2% from 1.6% and noting unemployment has risen above 6%. The IMF said public spending has increasingly masked private-sector weakness, citing sluggish investment and weak productivity, and it urged structural reforms to rebalance growth toward the private sector, address skills shortages, accelerate AI adoption and tackle housing bottlenecks. The fund also warned public debt will not stabilise under current policies and called for expenditure-focused fiscal adjustment.
Banque Internationale à Luxembourg (BIL) has agreed to transfer about 140 IT staff to US firm Kyndryl, affecting roughly 8% of its workforce as part of a long-term plan to modernise operations and accelerate cloud and AI adoption. BIL has said it will retain full control of IT strategy while outsourcing operational execution, and it has worked with Kyndryl to secure equivalent pay, benefits and two-year contractual safeguards for transferred employees. Regulators have been informed, Kyndryl plans an AI Innovation Lab extension in Luxembourg, and BIL reported a 25% profit rise to €210 million in 2025.
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