Luxweb Finance, le monde de la finance au Luxembourg

The Grand-Duchy of Luxembourg

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.

Nestled between Germany, Belgium and France in the very heart of Europe, Luxembourg is the headquarter
of important european institutions, such as the European Court of Justice, the European Court of Auditors or the European Investment Bank.

Area : 2,586 sq km

Land boundaries : 356 km, border countries: Belgium 148 km, France 73 km, Germany 135 km

Population : 442,972 (July 2001 est.)

Languages : Luxembourgish (national and administrative language), German (administrative language), French (administrative language)

Government type : constitutional monarchy

Executive branch

Chief 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 Jean-Claude JUNCKER (since 1 January 1995) and Vice Prime Minister Lydie POLFER (since 7 August 1999)

Cabinet : Council of Ministers recommended by the prime minister and appointed by the monarch

Elections : None, the monarch is hereditary; prime minister and vice prime minister appointed by the monarch, following popular election to the Chamber of Deputies; they are responsible to the Chamber of Deputies

Note : Government coalition - CSV and DP

Legislative branch

Unicameral Chamber of Deputies or Chambre des Deputes (60 seats; members are elected by direct popular vote to serve five-year terms)

Elections : Last held 13 June 1999 (next to be held by NA June 2004)

Election results : Percent of vote by party - CSV 29.79%, DP 21.58%, LSAP 23.75%, ADR 10.36%, Green Party 9.09%, the Left 3.77%; seats by party - CSV 19, DP 15, LSAP 13, ADR 6, Green Party 5, the Left 2

Note : The Council of State or Conseil d'Etat, which has 21 members who are appointed and dismissed by the Grand Duke based on proposals from the government, the Chamber of Deputies, or the Council of State, is an advisory body whose views are considered by the Chamber of Deputies.

Judicial branch

Judicial courts and tribunals (3 Justices of the Peace, 2 district courts, and 1 Supreme Court of Appeals); administrative courts and tribunals (State Prosecutor's Office, administrative courts and tribunals, and the Constitutional Court); judges for all courts are appointed for life by the monarch.

Economy - overview
The stable, high-income economy 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 has more than compensated for the decline in steel. Services, especially banking, account for a substantial proportion of the economy. Agriculture is based on small family-owned farms. The economy depends on foreign and trans-border workers for 30% of its labor force. Luxembourg has a custom union with 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.

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