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News Summary: Luxembourg defends financial sector

The Associated Press

WE'RE NO CYPRUS: Luxembourg defended the huge size of its financial sector from criticism Wednesday after Cyprus' messy bailout deal dragged other tiny economies with big banking sectors into the spotlight.

BIG IN BANKING: Land-locked Luxembourg is the European Union's second-smallest nation, with about 500,000 inhabitants, and has a banking sector about 20 times its annual economic output. Cyprus had a banking sector eight times its GDP.

THE STATEMENT: While Cyprus' banking sector was "structurally unbalanced," that of Luxembourg "acts as an important gateway for the euro area by attracting investments and thus contributing to the general competitiveness," the government said.