How did Luxembourg become a fully sovereign nation in 1867?
Luxembourgâs path to becoming a fully sovereign nation in 1867 was the result of a diplomatic compromise among the European great powers following a period of international tension.12
After the German Confederation was dissolved in 1866, Luxembourg gained a degree of independence, yet a Prussian military garrison remained stationed in its capital. The situation escalated when Napoleon III of France attempted to purchase the grand duchy from William III. Although the two rulers initially agreed on a price, the sale was blocked by the Prussian chancellor, Otto von Bismarck, leading to a diplomatic crisis.12
To resolve the conflict, the great powers convened in London and reached a compromise on May 11, 1867. Under this agreement, Prussia was required to withdraw its garrison, the capital's fortifications were to be dismantled, and Luxembourg was established as an independent, neutral state, with its sovereignty vested in the house of Nassau.12