VZCZCXRO5583
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHPOD RUEHROV RUEHSL RUEHSR RUEHYG
DE RUEHLE #0193/01 2031531
ZNR UUUUU ZZH
R 221531Z JUL 09 ZDK ZUI RUCNFB #8311 2040542
FM AMEMBASSY LUXEMBOURG
TO RUEHC/SECSTATE WASHDC 6668
INFO RUEHZG/NATO EU COLLECTIVE
RUCNMEM/EUMEM COLLECTIVE

UNCLAS SECTION 01 OF 02 LUXEMBOURG 000193 
 
C O R R E C T E D  C O P Y///ADDED SENSITIVE///// 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PINR PREL ECON LU
SUBJECT: LUXEMBOURG - COALITION GOVERNMENT RATIFIED WITH NEW 
MINISTERS AND SHIFTS IN PORTFOLIOS 
 
REF: A. LUXEMBOURG 137 B. LUXEMBOURG 128 
 
LUXEMBOURG 00000193  001.2 OF 002 
 
 
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SUMMARY 
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¶1. (SBU) Prime Minister (PM) Juncker and Jean Asselborn, Vice-Prime 
Minister and Minister for Foreign Affairs, announced the 
ratification of a coalition government July 20 along with the names 
and portfolios of the new ministers.  Several portfolios were 
reshuffled and three Ministers replaced.  As expected, Jean-Claude 
Juncker remains Prime Minister but replaces Luc Frieden as Treasury 
Minister, allowing Juncker to remain President of the Eurogroup. 
The replacement of Minister of Defense (MOD) Jean-Louis Schiltz by 
Jean-Marie Halsdorf was unexpected.  The new coalition government is 
unlikely to make significant changes to GOL (Government of 
Luxembourg) foreign policy initiatives.  End Summary. 
 
----------------------------- 
FORMATION OF A NEW GOVERNMENT 
----------------------------- 
 
¶2. (U) Prime Minister (PM) Juncker and Jean Asselborn, Vice-Prime 
Minister and Minister for Foreign Affairs, announced the 
ratification of the new coalition government July 20 along with the 
names and portfolios of the new GOL (Government of Luxembourg) 
ministers.  The announcement came after the national committees of 
the two parties who received the most votes from the June 7 
election, the Christian Social People's Party (CSV) and the 
Socialist Party (LSAP), signed the agreements earlier in the day. 
The portfolios were divided, as they were in the previous 
government, nine for CSV and six for LSAP. 
 
------------------------------- 
MINISTERS OF THE NEW GOVERNMENT 
------------------------------- 
 
¶3. (U) Prime Minister (PM) Juncker announced the nine Ministers from 
his party, the CSV, as: 
 
- Jean-Claude Juncker: Prime Minister, Treasury Minister and 
Minister of "administrative simplification." 
 
- Luc Frieden: Finance and Budget Minister 
 
- Jean-Marie Halsdorf: Minister of Defense, Minister for the 
Interior, Country Planning and the "Great Region." 
 
- Frangois Biltgen: Minister of Justice, Minister for Communication, 
Higher Education, Media, Research and Public Administration (civil 
service). 
 
- Frangoise Hetto-Gaasch: Minister for "Middle Classes", Tourism and 
Equal Opportunities. 
 
- Marie-Jose Jacobs: Minister for Family, Youth and Cooperation 
(development aid). 
 
- Octavie Modert: Minister for Culture, Religions, and 
Minister-delegate for Public Administration and "Administrative 
Simplification." 
 
- Marco Schank: Minister for Housing, Minister-delegate for Country 
Planning and Environment. 
 
- Claude Wiseler: Minister for Sustainable Development, 
Infrastructure, Transports, Environment, and Country Planning. 
 
¶4. (U) Foreign Minister (FM) Jean Asselborn announced the six LSAP 
Ministers as: 
 
- Jean Asselborn: Vice-Prime Minister and Minister for Foreign 
Affairs. 
 
- Mady Delvaux-Stehres: Education Minister. 
 
- Mars Di Bartolomeo: Minister for Health and Social Security. 
 
- Jeannot Kreck: Economy and Energy Minister. 
 
- Nicolas Schmit: Labor and Immigration Minister. 
 
- Romain Schneider: Minister for Agriculture and Sports. 
 
 
------------------------------ 
CHANGES AND IMPLICATIONS 
------------------------------ 
 
¶5. (SBU) Several portfolios were reshuffled and three Ministers 
replaced.  As expected, Jean-Claude Juncker remains Prime Minister 
 
LUXEMBOURG 00000193  002 OF 002 
 
 
but replaces Luc Frieden as Treasury Minister. This addition to his 
portfolio allows Juncker to remain President of the Eurogroup. 
Interestingly, Juncker becomes Minister for "administrative 
simplification," a clear sign that cutting red tape in the heavily 
regulated government will be a priority.  Jean Asselborn was 
re-appointed Foreign Minister despite his sometimes unscripted 
remarks.  However, he remains popular among his peers and the 
Luxembourgers. 
 
¶6. (SBU) The replacement of Minister of Defense (MOD) Jean-Louis 
Schiltz by Jean-Marie Halsdorf was unexpected as Schiltz was seen as 
having performed well.  Schiltz will remain a force in his party and 
was nominated to be president of the CSV parliamentary group, a 
driving force implementing the GOL's reforms. Halsdorf is known for 
supporting the continued expansion of the armed forces and its 
international missions including contributions to the coalition in 
Afghanistan. 
 
- Other changes are: 
 
- Former Minister-delegate for Foreign Affairs Nicolas Schmit, LSAP, 
was promoted to Minister of Labor and Immigration, replacing 
Francois Biltgen, CSV.  These are considered among the most 
difficult portfolios to manage, mainly due to rising unemployment 
which rose from 4.2 percent in May 2008 to 5.5 percent in May 2009. 
 
.  Both labor and agriculture were previously held by the CSV. 
- Claude Wiseler was promoted to the "super-ministry" of Sustainable 
Development, including Infrastructure, Transports, Environment and 
Country Planning.  He previously held Public Works and 
Administration. 
- Former CSV President and Labor Minister Frangois Biltgen was also 
given a "super-ministry" which includes Justice, Communications, 
Higher Education, Media, Research and Public Administration. 
Biltgen represents the more conservative group in the CSV, and he 
will be in charge of steering the resistance to legalization]v5/E>Q poor electoral 
showing caused by his unpopular reforms including an increase in car 
taxes. 
- Agriculture Minister Fernand Boden (CSV) is stepping down after 
thirty years in government. 
¶7. (SBU) The three newcomers, Marco Schank, CSV, Frangoise 
Hetto-Gaasch, CSV, and Romain Schneider, LSAP, are all 
mayors-parliamentarians who will need to resign their current 
positions to pick up their new ministerial portfolios. (Note: 
Luxembourg parliamentary system allows mayors to also be 
parliamentarians but not Ministers. End note).  Bio information on 
the new government will be sent SEPTEL. 
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COMMENT 
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¶8. (SBU) The new coalition government is unlikely to make 
significant changes in foreign policy.  Juncker's assumption of the 
Treasury Ministry allows him to retain the broader EU platform as 
President of the Eurogroup, the informal meeting of Finance 
Ministers from the Euro area.  Juncker is frequently mentioned 
locally as a possible future EU president and it is believed that 
the Eurogroup Presidency increases his chances.  Jean Asselborn was 
re-appointed Foreign Minister, partially if not primarily because 
the Foreign Minister position is traditionally controlled by the 
party of the junior coalition partner which Asselborn leads. 
¶9. (SBU) Newly-arrived Charge d'affairs and Pol/Econ Chief will meet 
with FM Asselborn July 28, prior to his departure for senior-level 
meetings in Washington. Out-take from this courtesy call to be 
reported SEPTEL. 
¶10. (U) Questions/comments concerning this cable should be directed 
to Michael A. Via, Pol/Econ Chief, viama@state.gov.  Telephone:(00 
352) 460123 ext. 2240 
 
BIEDLINGMAIER