In its effort to improve the competitiveness of companies and to reduce their production costs, Luxembourg's political authorities strive to create a legislative framework that favours the development of the Luxembourg economy.
More than other sovereign states, Luxembourg has managed throughout its history to set up a favourable business development policy by means of a flexible, modern and innovative liberal legal framework.
The results of these efforts have resulted in a consistently excellent performance in various international studies on competitiveness.
Thus in 2015, the country ranked 6th in the Global Competitiveness Index of the IMD World Competitiveness Yearbook (WCY), which classifies and analyses the ability of nations to create and maintain an environment fostering competition between companies. In 2015, the Grand Duchy ranked 20th in the Global Competitiveness Report 2014-2015 of the World Economic Forum (WEF). This report measures the degree of competitiveness of 140 countries in the world.
The Observatory for Competitiveness monitors Luxembourg's competitiveness via the 'competitiveness' dashboard set up at national level and it coordinates the Europe 2020 strategy at national level. It publishes an annual competitiveness report.