Most events listed on the agenda of Luxembourg 2007 are entirely or partly sponsored by banks. From Tomorrow Now (sponsored by KBL) to ReTour de Babel (State Street Bank), banks seem to be part of the cultural establishment. However, what motivates them to invest in culture? Cyn-ics might reply that it is another way to raise their reputation with the public in the hope to increase profits. But it is more complicated than that: banks develop long-term sponsoring strategies, which have become a bit more sophisticated than just another money-making machine.

Jean-Dominique Montoisy from KBL ex-plains that the choice of the event is very important and always tailored for a certain clientele. "The science fiction exhibition Tomorrow Now at the MUDAM intends to show a futuristic image of our bank. It means that we are open for innovation and prepared for future challenges." At the same time, KBL also sponsors a mass by 14th century poet and composer Guillaume de Machaut, which is to be held in the Eglise du Grund and "aimed at a more traditional audience".

Mr Montoisy however emphasises: "We hope to give something back to Luxembourg. That's why we are generally very eager to sponsor cultural events. It's part of our corporate social responsibility as a bank."

But the reasons behind cultural sponsorship can be even subtler. State Street Bank sees the sponsoring of cultural activities more as a way to promote internal communication by introducing their foreign employees to

Luxembourg's cultural offers. "Dialogue with the cultural world can be a source of creativity and fulfilment, ex-plains one spokesperson. Next to our reputation as a bank, we care about our own employees," he adds. The atmosphere at a bank is thus another factor that can encourage cultural pa-tronage.

The more traditional approach to sponsorship is however epitomised by the BCEE, which completely assumes the role of the "citizen bank". The Luxembourg-based institution tries to show an image that is close to the domestic clientele. It does not only support art exhibitions or concerts but also sporting events and social activities. In this case, cultural patronage is only part of a larger strategy to promote the bank's Luxembourgish identity, which stands in crass contrast against the KBL's or State Street Bank's private banking image.

Business versus art?

The banks' approach to art is however not always welcome. "What many artists don't want to admit is that almost all cultural events are co-sponsored by banks. Business and art seem incompatible to them, but they are wrong," claims Mr Montoisy.

Another source of misunderstandings is that banks and cultural institutions appear to have a different way of doing business. "We didn't receive any request for sponsorship this year till three months before the European year of culture took off. The problem is that we plan our budget a year in advance, so we had to improvise," he adds.

However, Luxembourg's cultural scene can only gain from the large number of potential sponsors that come from its financial place. Albeit small, the country's cultural agenda has recently been boiling over with art exhibitions and concerts, and this is precisely because of the Grand Duchy's rich community of benefactors.

The MUDAM, for instance, relies for 40% of its budget on private sponsors, which puts into perspective the actual dependence of cultural events on private money. Almost all cultural events have to be sponsored or they would simply not be staged. Not in a place like Luxembourg, which does not have the means or reputation of London or Paris.

That is why cultural sponsorship is a double-edged sword. On the one side of the blade, banks use it as a way to improve their image and increase profits, while on the other side their money is more than badly needed by curators and artists. Hence the notion of the "good corporate citizen", which has its vital purpose for Luxembourg's cultural scene. It's give and take.