Life After Loopholes Forces Luxembourg to Rethink Its Future

Luxembourg’s status as a fortress of wealth in the heart of Europe is in peril.

The country transformed itself from a rural economy into the European Union’s richest in less than a century by swapping fields and steel mills for hedge funds and multinationals. That model may now be at risk from regulatory clampdowns, first on banking secrecy and now on the tax accords that helped bring the profits of giant companies such as Amazon.com Inc. to the Grand Duchy.