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LUXEMBOURG
Year of EU entry Founding member
Political system Constitutional monarchy
Capital city Luxembourg
Total area 2,586 km2
Population 0.4 million
Currency euro |
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Overview
The Grand Duchy of Luxembourg is a small country surrounded by Belgium, France and Germany, and its history has been inextricably linked with that of its larger neighbours. It is largely made up of rolling hills and forests.
Luxembourg has been under the control of many states and ruling houses in its long history, but it has been a separate, if not always autonomous, political unit since the 10th century. Nowadays, Luxembourg is a hereditary Grand Duchy with a unicameral parliamentary system.
Letzeburgesch, the national language, is akin to German. German is the first foreign language for most Luxembourgers and is used in the media. French is the administrative language.
The economic structure of Luxembourg is based mainly in banking, insurance, and the steel industry. Agriculture and wine production are also important.
Many of Luxembourg's speciality dishes are appropriate to forest areas: jugged hare and Ardennes ham. Other local dishes include trout and pike from the rivers.
Luxembourg shares the Moselle valley with Germany and the local white wines are well known. Like other northern European countries, Luxembourg is also known for its beers.
Economy
This stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - features solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth in the financial sector, which now accounts for about 28% of GDP, has more than compensated for the decline in steel. Most banks are foreign-owned and have extensive foreign dealings. Agriculture is based on small family-owned farms. The economy depends on foreign and cross-border workers for more than 30% of its labour force. Although Luxembourg, like all EU members, has suffered from the global economic slump, the country enjoys an extraordinarily high standard of living - GDP per capita ranks first in the world.
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