Second, the soundness and profitability of the financial sector, which accounts for more than one third of all taxes collected by the Luxembourg central government, is very sensitive to the level of short-term interest rates, to the slope of the yield curve and also to stock exchange prices, namely three variables that are either directly fixed or strongly influenced by monetary policy.
The importance of a predictable monetary policy for the Luxembourg government is particularly apparent in such a context. BIS Review 14/2003  5