At risk of closure: the US embassy in Luxembourg may be abolished

The American embassy in Luxembourg was among ten foreign missions proposed for permanent closure as part of an internal plan to cut the US State Department's budget by almost 50%. This was reported by Politico, citing a confidential document from the Office of the Deputy Secretary of State.

If the proposals are implemented, U.S. diplomatic functions in Luxembourg would be transferred to an embassy in a neighbouring country, most likely Brussels or Paris. A similar principle is planned for a number of other countries, including Malta, Eritrea, Gambia, Lesotho and South Sudan. For example, the embassy in Italy would oversee Malta, while the diplomatic mission in Kenya would oversee Eritrea.

The closure of the Luxembourg embassy raised concerns about the Grand Duchy's strategic position in Europe and its significant role in the international financial architecture. In addition, the State Department's 2022 Inspector General's report had already criticised the Luxembourg mission for excessive housing costs and high staff turnover.

The embassy is now headed by Charge d'Affaires Michael Konstantino. Businesswoman Stacey Feinberg was appointed ambassador after Donald Trump's second term in 2024, but amid new proposals, her future role remains in doubt.

This move by the State Department has not yet been officially confirmed, but if the plan is approved, the U.S. diplomatic presence in Europe could shrink noticeably - which already raises questions about Washington's real priorities in the region. The closure of the Luxembourg office will be a symbolic step, given not only the country's economic importance, but also its political positioning in the EU and NATO.