The end of any year is always a time for making lists: usually a stock-take of achievements from the twelve months past, and a “To Do” list for the year approaching. From an Irish perspective top of our “To Do” list for 2026 will be delivering a successful, impactful EU Presidency in the second half of the year.

Although defined Presidency priorities will only be confirmed next year, the broad contours of some of the issues that will undoubtedly be on the Council agenda are already clear: security and defence, negotiating the EU’s budget, discussions around EU enlargement, and of course the EU’s competitiveness challenge.

This Presidency – the eighth in Ireland’s history – comes at an unprecedented time of geopolitical uncertainty for the EU and its Member States. As our Taoiseach (Prime Minister) Micheál Martin said at a recent Trade Conference in Dublin “Economically, socially, culturally, politically – long held certainties are disappearing. The challenges of this moment have many clear risks – for our economy, for our security, for our society and for our very way of life.”

Sobering words indeed.

And there can be little doubt that as small countries with open economies, both Ireland and Luxembourg are particularly vulnerable to external developments. Both Ireland and Luxembourg have greatly benefited from the returns of international trade and the EU Single Market, as well as strong international relationships. However, it is also this openness that can leave us exposed during challenging times.

For Ireland, membership of the European Union and the close engagement that this brings with likeminded partners such as Luxembourg, is at the heart of our response to these challenges.

For us, future progress, and the protection of our businesses, workers and consumers alike, is only made possible through cooperation with our partners around the European Union table.

During my two years as Irish Ambassador in the Grand Duchy it has been heartening to see our bilateral relationship going from strength to strength – even allowing for the healthy competition between us in certain sectors. At the highest political level, that has meant visits by Prime Minister Frieden to Dublin in 2024, and a visit by the Taoiseach to Luxembourg this July. As a complement to this, there have been many engagements at ministerial, municipal and official levels, as well as at industry level with a visit by FEDIL to its sister organisation IBEC in Dublin earlier this year. All of this close engagement underlines the many political and economic priorities shared by Luxembourg and Ireland. These range from an unwavering commitment to democracy, the rule of law and the international rules based system, to a high level of ambition for the future direction of travel for the EU’s Single Market, and an enthusiasm to pursue bilateral cooperation in new and exciting areas such as supercomputing.

It is in this spirit of cooperation, that we have cause to remain hopeful. Yes, the evolving international trading environment certainly brings challenges for the EU and its Member States, but it also presents opportunities.

In order to successfully leverage those opportunities however it is essential that the EU remains agile and responsive. In line with the Draghi and Letta recommendations, the European Council and the European Commission have placed a strong focus on simplification and administrative burden reduction at EU level, and the European Council has called for a “simplification revolution”.

Ireland and Luxembourg have been two of the strongest voices around the EU table in supporting the EU’s simplification agenda as well as the need to focus on reducing the regulatory burden – in particular for SMEs – while maintaining high ambitions in terms of environmental protection and other standards.

Domestically, Ireland’s approach to strengthening competitiveness relies on a business-friendly ecosystem and support for innovation, skills and access to finance. Our Government recently published an Action Plan on Competitiveness and Productivity which does not shy away from acknowledging the urgency of this task. The Plan sets out what we can do and must do – across the whole of government – to help businesses adapt and remain resilient in these challenging times. Emphasis has been placed on issues around international trade, engagement with the EU Single Market and Market Diversification, as well as legal and regulatory reform, cutting “red tape” for businesses and enabling regional growth. Again, all of these are issues where we have common cause with Luxembourg.

A second Government policy, the Action Plan on Market Diversification, commits to making the Irish economy more resilient while also strengthening and expanding our diplomatic relationships in key regions. This dovetails with the widely-held view across Europe that the EU needs to act with urgency to build on our market strengths and to diversify our markets. Yes, new trade agreements are part of that – and Ireland supports the EU’s ambitious trade agenda – but crucially we also need to actively look at where we can do more with existing and trusted partners including Luxembourg. In this regard, a recent visit to Luxembourg by Enterprise Ireland – the State Agency responsible for supporting Irish businesses to scale, develop capabilities and expand their global footprint – was particularly useful: this is a pro-business, and enabling environment with the potential for many bilateral economic and business opportunities to thrive.

So as we all draw up our end-of-year lists, let’s do so clear-eyed about the challenges ahead, but on a note of optimism. The relationship between Luxembourg and Ireland is very strong, with shared values at its core, and a sense of common purpose and drive around the EU table to maintain our hard-won peace and prosperity to the benefit of all.

Athbhliain faoi mhaise daoibh – Happy New Year to all.