Pierre Gramegna said Luxembourg was the country that could “build the most bridges” with the capital after the UK exits the EU.
Speaking to the Association of the Luxembourg Fund Industry, Mr Gramegna said the UK would need a base inside the eurozone and Luxembourg could be that place.
He said: “In the context of Brexit, we are probably the country that can build the most bridges with London. As a matter of fact, today the investment fund industry is based in Luxembourg in terms of administration, but most asset managers are placed in London.
Pierre Gramegna said Luxembourg could "build the most bridges" with UK business after Brexit
They will need a base inside the eurozone and Luxembourg will be ideal for that
“So, that successful business model can probably be continued, although probably in a different shape.
"It’s clear that when the United Kingdom will leave the EU, they will not keep a full access to the EU single market.
“So they will need a base inside the eurozone and Luxembourg will be ideal for that and we are working already on that and we will have a step-by-step approach so that players can start small and then grow their substance in Luxembourg progressively as they increase their business.”
Brexit Negotiations: Britain's sternest enemies Tue, April 4, 2017
According to a new index, the EU27 countries fall into three groups: hard-core, hard and soft. These are the countries with the highest scores which indicate a fairly strong opposition to Britain’s position
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France has the highest score in the index at 32.5
Ireland is being undercut by rival centres competing to host financial firms looking for a European Union base outside London after Brexit, according to officials in Dublin.
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Alarm bells started ringing when US insurer AIG became the biggest group so far to pick Luxembourg as its EU base and the Irish fear others may follow suit now the Brexit process is finally getting under way.
While Britain's terms of doing business with the EU are uncertain, finance executives reportedly say privately they expect Brexit to isolate London and want to establish bases inside the bloc from where they can access the single market.