Luxembourg, Grand Duchy of

Luxembourg, Grand Duchy of A small country in north-west Europe surrounded by Belgium to the west and north, Germany to the east, and France to the south.

Physical

The climate is temperate continental and there are sizeable forests, but the ground is hilly and rocky with little fertile soil.

Economy

Although steel is a major industry (iron ore being abundant), chemicals and machine manufacture are also significant. Attractive conditions including banking secrecy have made international financial services increasingly important. There is concern that EU fiscal harmonization may jeopardize Luxembourg's status as a leading financial centre.

History

Luxembourg was occupied by the Romans, then by the FRANKS in the 5th century, passing to the counts of Luxembourg in the 11th century. The duchy of Luxembourg was created in 1354. Seized by BURGUNDY in 1443, it passed to the HABSBURGS in 1477 and to SPAIN in 1555. The French occupied it from 1684 until 1697. The first Count of Luxembourg was Conrad, who took the title in 1060. Luxembourg passed again to the Habsburgs after the War of the Spanish Succession (1701–14). In 1815 it was handed over to the Netherlands but joined the Belgians in the revolt of 1830; in 1831 Luxembourg was divided, the Walloon-speaking region becoming part of Belgium. The rest of Luxembourg remained within the Netherlands and became the Grand Duchy of Luxembourg in 1839 with its own government. In 1890 the King of the Netherlands died without a male heir and from then on the two countries were headed by different royal families. Grand Duke Jean (1921– ) succeeded in 1964 when his mother, Grand Duchess Charlotte (1896–1985), abdicated in his favour. Luxembourg entered into an economic union with Belgium in 1921. The Netherlands joined this union in 1948, forming the Benelux Economic Union, which was the first free-trade area in Europe. Luxembourg was a founder member of the EUROPEAN ECONOMIC COMMUNITY (now the EUROPEAN UNION). The centre-left coalition, which has held power since 1984, was re-elected in 1994 and in 1998 chose to enter the single European currency.

Capital:	Luxembourg
Area:	2586 sq km (999 sq miles)
Population:	425,000 (1998 est)
Currency:	euro; until 2002 also 1 Luxembourg franc= 100 centimes (Belgian currency also legal tender)
Religions:	Roman Catholic 93.0%; Protestant 1.3%
Ethnic Groups:	Luxembourger 73.8%; Portuguese 8.1%; Italian 5.4%; French 3.3%; German 2.3%; Belgian 2.3%
Languages:	French, German (both official); Letzeburgesch; minority languages
International Organizations:	UN; EU; OECD; NATO; Council of Europe; CSCE