Officials at Buckingham Palace are said to be concerned at a study being compiled by Luxembourg’s prime minister Xavier Bettel into his state’s own monarchy.
Aides fear this will become a template for Britain’s royals to be brought to heel following the uproar over Prince Harry and Meghan’s departure from full-time royal duties.
Luxembourg’s PM appointed investigator Jeannot Waringo to study the state’s monarchy and its chaotic household, which has seen more than 30 aides sacked or quit in just a few months.
Now the report, due within weeks, is said to recommend handing to the government the power to hire and fire all royal retainers.
The Queen has been forced to handle both the Sussexes’ unprecedented rejection of royal responsibilities and the scandal of Prince Andrew’s TV shaming over his closeness to paedophile tycoon Jeffrey Epstein. At the same time, Prince Charles has insisted on presenting his vision of a monarchy with just him and Prince William at the head of the Firm.
One former aide explained: “They have been forced to make so many changes already and once that door is open there is no going back.
“This report is a gift for politicians and civil servants who have long wanted to bring the Royal Family under tighter control.”
Like the British royals, the Luxembourg court is funded directly by the government.
A Palace retainer advised: “In the UK it’s through the Sovereign Grant, in Luxembourg it comes in the government budget but it’s all public money.”
Media commentators in Luxembourg say Grand Duke Henri and his Grand Duchess Maria are likely to abdicate rather than continue as “puppet” royals.
This leaves in doubt the future of the heir to the throne, Prince Guillaume and his wife, Princess Stephanie, who are expecting their first child.
Buckingham Palace officials are reportedly following every detail of the investigation into the Luxembourg royals, who are distant cousins of the Windsors.