Santer-Poos II Government

[2] In the decision of Edinburgh on 12 December 1992, the government succeeded in making permanent the establishment in Luxembourg of those organs and services which had until then been there provisionally.

[2] It also managed to obtain the headquarters of the Translation Centre for the Bodies of the European Union, and that of the Court of First Instance.

[3] The Greater Region not only provided an increasing proportion of the workforce, but also contributed significantly to the fiscal stability of the Grand Duchy through the direct and indirect taxes paid by the cross-border workers.

[3] The government concentrated its efforts on regional aid, small and medium businesses and research and development.

[4] In 1992, the reintroduction of the withholding tax (Quellensteuer) in Germany led to the establishment of new German banks in the Grand Duchy.

[4] The levies paid by investment funds and holding companies made up a significant part of public revenue.

[4] Confronted with attacks in the international press attempting to discredit banking activities in Luxembourg, the government took measures to strengthen its control over the financial sector.

[4] The law of 5 April 1993 on the financial sector fixed the conditions of banking secrecy and obliged credit institutions to know their clients.

[4] The Santer-Poos government enacted a programme which provided for a reform of pensions and health insurance, measures to support families, innovations in secondary education and the consolidation of financing of hospitals.