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. In 1867, Luxembourg attained full independence under the condition that it promise perpetual neutrality. 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 EEC (later the EU), and in 1999 it joined the euro currency zone.
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 52.1%, Portuguese 16%, French 7.6%, Italian 3.6%, Belgian 3.4%, German 2.2%, Spanish 1.1%, British 1%, other 13% (2018 est.)
note: data represent population by nationality
Languages: Luxembourgish (official administrative and judicial language and national language (spoken vernacular)) 55.8%, Portuguese 15.7%, French (official administrative, judicial, and legislative language) 12.1%, German (official administrative and judicial language) 3.1%, Italian 2.9%, English 2.1%, other 8.4% (2011 est.)
Religions: Christian (predominantly Roman Catholic) 70.4%, Muslim 2.3%, other (includes Buddhist, folk religions, Hindu, Jewish) 0.5%, none 26.8% (2010 est.)
Age structure0-14 years: 16.74% (male 52,243 /female 49,183)
15-24 years: 12.06% (male 37,391 /female 35,650)
25-54 years: 44.18% (male 137,381 /female 130,252)
55-64 years: 11.9% (male 36,670 /female 35,442)
65 years and over: 15.11% (male 41,002 /female 50,550) (2018 est.)
EnvironmentCurrent issues: air and water pollution in urban areas, soil pollution of farmland; unsustainable patterns of consumption (transport, energy, recreation, space) threaten biodiversity and landscapes
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
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 national festivities were shifted in 1962 to allow observance during a more favorable time of year
ConstitutionHistory: previous 1842 (heavily amended 1848, 1856); latest effective 17 October 1868 (2016)
Amendments: proposed by the Chamber of Deputies or by the monarch to the Chamber; passage requires at least two-thirds majority vote by the Chamber in two successive readings three months apart; a referendum can be substituted for the second reading if approved by more than one-quarter of the Chamber members or by 25,000 valid voters; adoption by referendum requires a majority of all valid voters; amended many times, last in 2009 (2016)
Suffrage: 18 years of age; universal and compulsory
Executive branchChief of state: Grand Duke HENRI (since 7 October 2000); Heir Apparent Prince GUILLAUME (son of the monarch, born 11 November 1981)
Head of government: Prime Minister Xavier BETTEL (since 4 December 2013); Deputy Prime Minister Etienne SCHNEIDER (since 4 December 2013); Deputy Prime Minister Felix BRAZ (since 5 December 2018)
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 (60 seats; members directly elected in multi-seat constituencies by party-list proportional representation vote; members serve 5-year terms); 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 14 October 2018 (next to be held by October 2023)
Election results: percent of vote by party - CSV 28.3%, LSAP 17.6%, DP 16.9%, Green Party 15.1%, ADR 8.3%, Pirate Party 6.4%, The Left 5.5%, other 1.9%; seats by party - CSV 21, DP 12, LSAP 10, Green Party 9, ADR 4, Pirate Party 2, The Left 2; composition - men 46, women 14, percent of women 23.3%
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 [Corinne CAHEN]Green Party [Francoise FOLMER, Christian KMIOTEK]Luxembourg Socialist Workers' Party or LSAP [Claude HAAGEN]The Left (dei Lenk/la Gauche) [collective leadership, Central Committee]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
Diplomatic representationIn the us chief of mission: Ambassador Sylvie LUCAS (since 16 September 2016)
In the us chancery: 2,200 Massachusetts Avenue NW, Washington, DC 20,008
In the us telephone: [1] (202) 265-4,171
In the us FAX: [1] (202) 328-8,270
In the us consulate: New York, San Francisco
From the us chief of mission: Ambassador James Randolph Randy EVANS (since 19 June 2018)
From the us embassy: 22 Boulevard Emmanuel Servais, L-2,535 Luxembourg City
From the us mailing address: Unit 3,560, APO-AE 9,126-3,560 (official mail)
From the us telephone: [352] 46-01-23 00
From the us FAX: [352] 46-14-01
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 (Our Motherland); De Wilhelmus (The William)
Lyricsmusic: 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. Luxembourg, the only Grand Duchy in the world, is a landlocked country in northwestern Europe surrounded by Belgium, France, and Germany. Despite its small landmass and small population, Luxembourg is the fifth-wealthiest country in the world when measured on a gross domestic product (PPP) per capita basis. 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, with a 2017 surplus of 0.5% of GDP, and the lowest public debt level in the region.Since 2002, Luxembourg’s government has proactively implemented policies and programs to support economic diversification and to attract foreign direct investment. The government focused on key innovative industries that showed promise for supporting economic growth: logistics, information and communications technology (ICT); health technologies, including biotechnology and biomedical research; clean energy technologies, and more recently, space technology and financial services technologies. The economy has evolved and flourished, posting strong GDP growth of 3.4% in 2017, far outpacing the European average of 1.8%.Luxembourg remains a financial powerhouse - the financial sector accounts for more than 35% of GDP - because of the exponential growth of the investment fund sector through the launch and development of cross-border funds (UCITS) in the 1990s. Luxembourg is the world’s second-largest investment fund asset domicile, after the US, with $4 trillion of assets in custody in financial institutions.Luxembourg has lost some of its advantage as a favorable tax location because of OECD and EU pressure, as well as the 'LuxLeaks' scandal, which revealed advantageous tax treatments offered to foreign corporations. In 2015, the government’s compliance with EU requirements to implement automatic exchange of tax information on savings accounts - thus ending banking secrecy - has constricted banking activity. Likewise, changes to the way EU members collect taxes from e-commerce has cut Luxembourg’s sales tax revenues, requiring the government to raise additional levies and to reduce some direct social benefits as part of the tax reform package of 2017. The tax reform package also included reductions in the corporate tax rate and increases in deductions for families, both intended to increase purchasing power and increase competitiveness.
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% of GDP (2017 est.)
20.8% of GDP (2016 est.)
note: data cover general government debt and include debt instruments issued (or owned) 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 intragovernmental debt; intragovernmental 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: 183
Central bank discount rate:
0% (31 December 2017)
0% (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: 157
Stock of narrow money:
$275.6 billion (31 December 2017 est.)
$229.2 billion (31 December 2016 est.)
note: see entry for the EU for money supply for the entire euro area; the European Central Bank (ECB) 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: 18
Exports:
$15.99 billion (2017 est.)
$16.37 billion (2016 est.)
Rank: 74
Partners: Germany 25.6%, Belgium 17.6%, France 14%, Netherlands 5.1%, Italy 4.1%, UK 4.1% (2017)
Commodities: machinery and equipment, steel products, chemicals, rubber products, glass
Imports:
$20.66 billion (2017 est.)
$20.41 billion (2016 est.)
Rank: 76
Commodities: commercial aircraft, minerals, chemicals, metals, foodstuffs, luxury consumer goods
Partners: Belgium 32%, Germany 24.9%, France 11.1%, US 5.7%, Netherlands 4.9% (2017)
Debt external:
$3.781 trillion (31 March 2016 est.)
$3.806 trillion (31 March 2015 est.)
Rank: 6
Exchange rates:
0.885 (2017 est.)
0.903 (2016 est.)
0.9214 (2015 est.)
0.885 (2014 est.)
0.7634 (2013 est.)
top of pagetop of pageTelephone systemGeneral assessment: highly developed, completely automated and efficient system; by 2020 the government’s program is to provide a 1Gb/s service to all citizens, and to make Luxembourg the first fully fibred country in Europe; new law requiring SIM cards be registered has slowed down growth for mobile subscribers; 5G launch by 2020 (2017)
Domestic: fixed-line teledensity about 46 per 100 persons; nationwide mobile-cellular telephone system with market for mobile-cellular phones virtually saturated with 134 per 100 mobile-cellular (2017)
International: country code - 352 (2016)
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 (2016)
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 (2017)
top of pagePipelines: 142 km gas, 27 km refined products (2013)
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