top of pageBackground: 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
top of pageEthnic groups: Luxembourger 57% Portuguese 16.1% French 6.1% Italian 3.5% Belgian 3.3% German 2.4% British 1.1% other 10.5%
Note: represents composition by citizenship
Languages: Luxembourgish (official administrative language and national language (spoken vernacular)) 88.8% French (official administrative language) 4.2% Portuguese 2.3% German (official administrative language) 1.1% other 3.5% (2011 est.)
Religions: Roman Catholic 87% other (includes Protestant Jewish and Muslim) 13% (2000)
EnvironmentCurrent issues: air and water pollution in urban areas soil pollution of farmland
International agreements party to: Air Pollution Air Pollution-Nitrogen Oxides Air Pollution-Persistent Organic Pollutants Air Pollution-Sulfur 85 Air Pollution-Sulfur 94 Air Pollution-Volatile Organic Compounds Biodiversity Climate Change Climate Change-Kyoto Protocol Desertification Endangered Species Hazardous Wastes Law of the Sea Marine Dumping Ozone Layer Protection Ship Pollution Tropical Timber 83 Tropical Timber 94 Wetlands
International agreements signed but not ratified: Environmental Modification
Drinking water source:
urban: 100% of population
rural: 100% of population
total: 100% of population
urban: 0% of population
rural: 0% of population
total: 0% of population (2015 est.)
Sanitation facility access:
urban: 97.5% of population
rural: 98.5% of population
total: 97.6% of population
urban: 2.5% of population
rural: 1.5% of population
total: 2.4% of population (2015 est.)
top of pageAdministrative divisions: 12 cantons (cantons singular - canton); Capellen Clervaux Diekirch Echternach Esch-sur-Alzette Grevenmacher Luxembourg Mersch Redange Remich Vianden Wiltz
National holiday: National Day (birthday of Grand Duke Henri) 23 June; note - this date of birth is not the true date of birth for any of the Royals but the festivities were shifted to allow observance during a more favorable time of year
Constitution: previous 1842 (heavily amended 1848 1856); latest effective 17 October 1968; amended many times last in 2008 (2008)
Suffrage: 18 years of age; universal and compulsory
Executive branchChief of state: Grand Duke HENRI ; Heir Apparent Prince GUILLAUME (son of the monarch born 11 November 1981)
Head of government: Prime Minister Xavier BETTEL ; Deputy Prime Minister Etienne SCHNEIDER (since 4 December 2013)
Cabinet: Council of Ministers recommended by the prime minister appointed by the monarch
Electionsappointments: the monarchy is hereditary; following elections to the Chamber of Deputies the leader of the majority party or majority coalition usually appointed prime minister by the monarch; deputy prime minister appointed by the monarch; prime minister and deputy prime minister are responsible to the Chamber of Deputies
Legislative branchDescription: unicameral Chamber of Deputies or Chambre des Deputes ; note - a 21-member Council of State appointed by the Grand Duke on the advice of the prime minister serves as an advisory body to the Chamber of Deputies
Elections: last held on 20 October 2013
Election results: percent of vote by party - CSV 33.7% LSAP 20.3% DP 18.3% Green Party 10.1% ADR 6.6% The Left 4.5% other 6.1%; seats by party - CSV 23 LSAP 13 DP 13 Green Party 6 ADR 3 The Left 2
Political parties and leaders:
Alternative Democratic Reform Party or ADR [Jean SCHOOS]
Christian Social People's Party or CSV [Marc SPAUTZ]
Democratic Party or DP [Xavier BETTEL]
Green Party [Francoise FOLMER and Christian KMIOTEK]
Luxembourg Socialist Workers' Party or LSAP [Claude HAAGEN]
The Left (dei Lenk/la Gauche) [Serge URBANY]
other minor parties
International organization participation: ADB (nonregional member) Australia Group Benelux BIS CD CE EAPC EBRD ECB EIB EMU ESA EU FAO FATF IAEA IBRD ICAO ICC (national committees) ICCt ICRM IDA IEA IFAD IFC IFRCS ILO IMF IMO Interpol IOC IOM IPU ISO ITSO ITU ITUC (NGOs) MIGA NATO NEA NSG OAS (observer) OECD OIF OPCW OSCE PCA Schengen Convention UN UNCTAD UNESCO UNHCR UNIDO UNRWA UPU WCO WHO WIPO WMO WTO 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; the coloring is derived from the Grand Duke's coat of arms (a red lion on a white and blue striped field)
National anthemName: 'Ons Heemecht' ; 'De Wilhelmus' (The William)
Lyrics and music: Michel LENTZ/Jean-Antoine ZINNEN; Nikolaus WELTER/unknown
Note: 'Ons Heemecht' adopted 1864 is the national anthem while 'De Wilhelmus' adopted 1919 serves as a royal anthem for use when members of the grand ducal family enter or exit a ceremony in Luxembourg
top of pageEconomy overview: This small stable high-income economy has historically featured solid growth low inflation and low unemployment. The industrial sector initially dominated by steel has become increasingly diversified to include chemicals machinery and equipment rubber automotive components and other products. The financial sector which accounts for about 36% of GDP is the leading sector in the economy. The economy depends on foreign and cross-border workers for about 39% of its labor force. Luxembourg experienced uneven economic growth in the aftermath of the global economic crisis that began in late 2008. Luxembourg's GDP contracted 3.6% in 2009 rebounded in 2010-12 fell again in 2013 but recovered in 2014. Unemployment has remained below the EU average despite having increased from a historically-low rate of 4% in the 2000s to 7% in 2014. The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks among the highest in the world and is the highest in the euro zone. Luxembourg has one of the highest current account surpluses as a share of GDP in the euro zone and it maintains a healthy budgetary position and the lowest public debt levels in the region. Luxembourg has lost some of its advantage as a favorable tax location because of OECD and EU pressure. In 2015 the government’s compliance with EU requirements to implement automatic exchange of tax information on savings accounts - thus ending banking secrecy - has depressed banking activity and dampened GDP growth. Likewise changes to the way EU members collect taxes from e-Commerce has cut Luxembourg’s tax revenues requiring the government to raise additional levies and to reduce some direct social benefits.
Industries: banking and financial services construction real estate services iron metals and steel information technology telecommunications cargo transportation and logistics chemicals engineering tires glass aluminum tourism biotechnology
Public debt:
23.2% of GDP (2014 est.)
23.1% of GDP (2013 est.)
Note: data cover general government debt and includes debt instruments issued by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds such as for retirement medical care and unemployment; debt instruments for the social funds are not sold at public auctions
Rank: 134
Central bank discount rate:
0.75% (31 December 2013)
1.5% (31 December 2010)
Note: this is the European Central Bank's rate on the marginal lending facility which offers overnight credit to banks in the euro area
Rank: 131
Stock of narrow money:
$209.6 billion (31 December 2014 est.)
$207.3 billion (31 December 2013 est.)
Note: see entry for the European Union for money supply for the entire euro area; the European Central Bank controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
Rank: 21
Exports:
$18.9 billion (2014 est.)
$16.98 billion (2013 est.)
Rank: 75
Commodities: machinery and equipment steel products chemicals rubber products glass
Partners: Germany 23.5% France 17% Belgium 16.2% Italy 5.6% Switzerland 4.4% (2014)
Imports:
$27.92 billion (2014 est.)
$25.34 billion (2013 est.)
Rank: 70
Commodities: commercial aircraft minerals chemicals metals foodstuffs luxury consumer goods
Partners: Belgium 30.8% Germany 24.5% France 11.9% US 7.1% China 5.9% Netherlands 4.9% (2014)
Debt external:
$2.935 trillion (31 December 2012 est.)
$2.084 trillion (31 December 2011)
Rank: 7
Exchange rates:
euros (EUR) per US dollar -
0.7489 (2014 est.)
0.7634 (2013 est.)
0.78 (2012 est.)
0.7185 (2011 est.)
0.755 (2010 est.)
top of pagetop of pageTelephone systemGeneral assessment: highly developed completely automated and efficient system mainly buried cables
Domestic: fixed-line teledensity over 50 per 100 persons; nationwide mobile-cellular telephone system with market for mobile-cellular phones virtually saturated
International: country code - 352
Broadcast media: Luxembourg has a long tradition of operating radio and TV services for pan-European audiences and is home to Europe's largest privately owned broadcast media group the RTL group which operates 46 TV stations and 29 radio stations in Europe; also home to Europe's largest satellite operator Societe Europeenne des Satellites (SES); domestically the RTL group operates TV and radio networks; other domestic private radio and TV operators and French and German stations available; satellite and cable TV services available (2008)
top of pageMilitary service age and obligation: 18-24 years of age for male and female voluntary military service; no conscription; Luxembourg citizen or EU citizen with 3-year residence in Luxembourg (2012)
top of pagePipelines: gas 142 km; refined products 27 km (2013)
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