Background: Founded in 963 Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839 but gained a larger measure of autonomy. Full independence was attained in 1867. Overrun by Germany in both World Wars it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957 Luxembourg became one of the six founding countries of the European Economic Community (later the European Union) and in 1999 it joined the euro currency area.
Climate: modified continental with mild winters cool summers
Terrain: mostly gently rolling uplands with broad shallow valleys; uplands to slightly mountainous in the north; steep slope down to Moselle flood plain in the southeast
Legislative branch: unicameral Chamber of Deputies or Chambre des Deputes (60 seats; members are elected by direct popular vote to serve five-year terms)
Judicial branch: Superior Court of Justice or Cour Superieure de Justice judges are appointed for life by the monarch; Administrative Court or Tribunale Administratin judges are appointed for life by the monarch
Political parties and leaders: Action Committee for Democracy and Pension Rights or ADR [Robert MEHLEN]; Christian Social People's Party or CSV [Erna HENNICOT-SCHOEPGES]; Democratic Party or DP [Lydie POLFER]; Green Party [Jean HUSS]; Luxembourg Socialist Workers' Party or LSAP [Jean ASSELBORN]; Marxist and Reformed Communist Party DEI LENK (the Left) [Andre HOFFMAN]; other minor parties
International organization participation: ACCT Australia Group Benelux CCC CE EAPC EBRD ECE EIB EMU EU FAO IAEA IBRD ICAO ICC ICFTU ICRM IDA IEA IFAD IFC IFRCS ILO IMF IMO Intelsat Interpol IOC IOM ISO ITU NATO NEA NSG OECD OPCW OSCE PCA UN UNCTAD UNESCO UNIDO UPU WCL WEU WHO WIPO WMO WTrO ZC
Flag description: three equal horizontal bands of red (top) white and light blue; similar to the flag of the Netherlands which uses a darker blue and is shorter; design was based on the flag of France
Economy overview: The stable high-income economy features moderate growth low inflation and low unemployment. The industrial sector until recently dominated by steel has become increasingly more diversified to include chemicals rubber and other products. During the past decades growth in the financial sector has more than compensated for the decline in steel. Services especially banking account for a growing proportion of the economy. Agriculture is based on small family-owned farms. Luxembourg has especially close trade and financial ties to Belgium and the Netherlands and as a member of the EU enjoys the advantages of the open European market. It joined with 10 other EU members to launch the euro on 1 January 1999.
Exchange rates: euros per US$1 - 0.9867 (January 2000) 0.9386 (1999); Luxembourg francs (LuxF) per US$1 - 34.77 (January 1999) 36.299 (1998) 35.774 (1997) 30.962 (1996) 29.480 (1995); note - the Luxembourg franc is at par with the Belgian franc which circulates freely in Luxembourg