Luxembourg
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What is Luxembourg?
Luxembourg is a landlocked country in northwestern Europe that borders Belgium, France, and Germany. Its capital, Luxembourg city, has a strategic position that has earned it the nickname "the Gibraltar of the north".
Luxembourg's economy has close ties to the rest of Europe and a very high standard of living. The country's prosperity was initially built on the iron and steel industry but has since shifted to international banking and financial services, information technology, and electronic commerce.
Luxembourg became an independent entity in 963. In 1354, the country became a duchy. Today, Luxembourg is a constitutional monarchy, with executive power belonging to the grand duke, who appoints the prime minister.
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Where is Luxembourg located in Europe?
Luxembourg is a landlocked country in northwestern Europe. It is one of the worldâs smallest countries, bordered by Belgium to the west and north, France to the south, and Germany to the northeast and east. The northern third of Luxembourg is known as the Oesling, a corner of the Ardennes Mountains. The southern two-thirds of the country is called Bon Pays. The capital city, Luxembourg, is in the south-central part of the country.
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What languages are commonly spoken in Luxembourg?
Luxembourgish, French, and German are the most commonly spoken languages in Luxembourg. Luxembourgish is the national language, while French and German are languages of administration. Most Luxembourgers are trilingual, speaking Luxembourgish, French, and German. Because of Luxembourg's chronic labor shortage and low birth rate, nearly half the population consists of foreign residents, including Portuguese, French, Italians, Belgians, and Germans.
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What type of government does Luxembourg have?
Luxembourg's government is a constitutional monarchy with hereditary succession. The Grand Duke's powers are primarily formal; executive power rests with the Prime Minister and the ministerial council, who are responsible to the Chamber of Deputies. The Chamber of Deputies is a legislative assembly of 60 members elected by popular vote to five-year terms. Legislative elections usually result in coalition governments formed by two of the three major parties: the Christian Social Peopleâs Party, the Socialist Workersâ Party of Luxembourg, and the Democratic Party. A Council of State, appointed by the Grand Duke, serves as an advisory body.
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Why is Luxembourg known as an important financial center?
Luxembourg's prominence as a financial center grew in the late 20th century due to its involvement in international banking and financial services. Several factors contribute to this status. The government's farsighted policies, such as encouraging the registration of holding companies in Luxembourg since 1929, created a liberal tax climate. This favorable environment attracted many industrial and financial corporations to establish offices there, often as their European headquarters. Luxembourg's banking laws, which permitted general secrecy, also played a role in its financial success. In the 21st century, Luxembourg is home to scores of banks, most of which are foreign-owned.
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What are some famous landmarks or attractions in Luxembourg?
Luxembourg City is home to many famous landmarks and attractions, including the remains of Luxembourg Castle, which was once one of the strongest fortresses in Europe. Visitors can tour the remaining casements and view the city from the Chemin de la Corniche, a promontory built atop the old town wall.
Other attractions include the Grand Ducal Palace, the royal family's home, and the Notre-Dame Cathedral, a Gothic-style church containing the tomb of John the Blind. The Luxembourg National Museum houses collections of Gallo-Roman art, coins, and medieval sculpture. The Oesling region offers forested hills, valleys, and castle ruins.
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News •
Luxembourg, landlocked country in northwestern Europe. One of the worldâs smallest countries, it is bordered by Belgium on the west and north, France on the south, and Germany on the northeast and east. Luxembourg has come 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. The ancient Saxon name of its capital city, Lucilinburhuc (âLittle Fortressâ), symbolized its strategic position as âthe Gibraltar of the north,â astride a major military route linking Germanic and Frankish territories.
Luxembourg is a point of contact between the Germanic- and Romance-language communities of Europe, and three languages are regularly employed in the grand duchy itself: Luxembourgish, German, and French. The peoples of Luxembourg and their languages reflect the grand duchyâs common interests and close historical relations with its neighbours. In the 20th century Luxembourg became a founding member of several international economic organizations. Perhaps most importantly, the grand duchy was an original member of the Benelux Economic Union (1944), which linked its economic life with that of the Netherlands and of Belgium and would subsequently form the core of the European Economic Community (EEC; ultimately succeeded by the European Union).
- Head Of Government:
- Prime Minister: Luc Frieden
- Capital:
- Luxembourg
- Population:
- (2026 est.) 700,800
- Currency Exchange Rate:
- 1 USD equals 0.904 euro
- Head Of State:
- Grand Duke: Henri
- Form Of Government:
- constitutional monarchy with one legislative house (Chamber of Deputies [60])2
- Official Languages:
- See footnote 1.
- Official Religion:
- none
- Official Names1:
- Groussherzogtum Lëtzebuerg (Luxembourgish); Grand-Duché de Luxembourg (French); Grossherzogtum Luxemburg (German) (Grand Duchy of Luxembourg)
- Total Area (Sq Km):
- 2,586
- Total Area (Sq Mi):
- 999
- Monetary Unit:
- euro (âŹ)
- Population Rank:
- (2026) 170
- Population Projection 2030:
- 763,000
- Density: Persons Per Sq Mi:
- (2026) 702.2
- Density: Persons Per Sq Km:
- (2026) 271
- Urban-Rural Population:
- Urban: (2024) 92.3%
- Rural: (2024) 7.7%
- Life Expectancy At Birth:
- Male: (2024) 81.2 years
- Female: (2024) 85.3 years
- Gni (U.S.$ â000,000):
- (2024) 57,311
- Gni Per Capita (U.S.$):
- (2024) 84,650
- Luxembourgish is the national language; German and French are both languages of administration.
- In addition, the 22-member Council of State (a 21-member body of unelected citizens appointed by the Grand Duke plus the hereditary Grand Duke) serves in an advisory capacity to the government.
Land
Relief and soils
The northern third of Luxembourg, known as the Oesling (Ăsling), comprises a corner of the Ardennes Mountains, which lie mainly in southern Belgium. It is a plateau that averages 1,500 feet (450 metres) in elevation and is composed of schists and sandstones. This forested highland region is incised by the deep valleys of a river network organized around the SĂ»re (or Sauer) River, which runs eastward through north-central Luxembourg before joining the Moselle (or Mosel) River on the border with Germany. The Oeslingâs forested hills and valleys support the ruins of numerous castles, which are a major attraction for the regionâs many tourists. The fertility of the relatively thin mountain soils of the region was greatly improved with the introduction in the 1890s of a basic-slag fertilizer, which is obtained as a by-product of the grand duchyâs steel industry.
The southern two-thirds of Luxembourg is known as the Bon Pays, or Gutland (French and German: âGood Landâ). This region has a more-varied topography and an average elevation of 800 feet (about 245 metres). The Bon Pays is much more densely populated than the Oesling and contains the capital city, Luxembourg, as well as smaller industrial cities such as Esch-sur-Alzette. In the centre of the Bon Pays, the valley of the northward-flowing Alzette River forms an axis around which the countryâs economic life is organized. Luxembourg city lies along the Alzette, which joins the SĂ»re farther north.
In the east-central part of the Bon Pays lies a great beech forest, the MĂŒllerthal, as well as a sandstone area featuring an attractive ruiniform topography. The countryâs eastern border with Germany is formed (successively from north to south) by the Our, SĂ»re, and Moselle rivers. The slopes of the Moselle River valley, carved in chalk and calcareous clay, are covered with vineyards and receive a substantial amount of sunshine, which has earned the area the name âLittle Riviera.â Besides vineyards, the fertile soils of the Moselle and lower SĂ»re valleys also support rich pasturelands. Luxembourgâs former iron mines are located in the extreme southwest, along the duchyâs border with France.
Climate
Luxembourg has a mild climate with considerable precipitation. The north is slightly colder and more humid than the south. The mean temperatures in Luxembourg city range from the mid-30s F (about 0.7 °C) in January to the low 60s F (about 17 °C) in July, but in the Oesling both extremes are slightly lower. The Oesling receives more precipitation than the Bon Pays, but the greatest amount, about 40 inches (1,000 mm), and the least, about 27 inches (about 685 mm), fall in the southwest and southeast, respectively. The sheltered valley of the Moselle River benefits from a gentler and sunnier climate than does the rest of the duchy.
People
Ethnic groups, languages, and religion
Luxembourg has been one of the historic crossroads of Europe, and myriad peoples have left their bloodlines as well as their cultural imprints on the grand duchy. The Celts, the Belgic peoples known as the Treveri, the Ligurians and Romans from Italy, and especially the Franks were most influential. The language spoken by Luxembourgâs native inhabitants is Luxembourgish, or LĂ«tzebuergesch, a Moselle-Franconian dialect of German that has been enriched by many French words and phrases. Luxembourgish is the national language; German and French are both languages of administration. There is a strong sense of national identity among Luxembourgers despite the prevalence of foreign influences. The great majority of Luxembourgâs native citizens are Roman Catholic, with a small number of Protestants (mainly Lutherans), Jews, and Muslims.
Luxembourg has a high proportion of foreigners living within its borders. This is chiefly the result of an extremely low birth rate among native Luxembourgers, which has led to a chronic labour shortage. Nearly half of the total population is of foreign birth and consists mainly of Portuguese, French, Italians, Belgians, and Germans. Among the foreign workers are many in the iron and steel industry, and numerous others work in foreign firms and international organizations located in the capital.
Settlement patterns
Northern Luxembourg is sparsely populated compared with the heavily urbanized and industrialized south. The northâs rural population is clustered in villages of thick-set stone houses with slate roofs. The urban network in the south is dominated by the capital city, Luxembourg, which rises in tiers, with the upper (and older) section of the city separated from the lower-lying suburbs by the gorges of the Alzette and Petrusse rivers. A newer quarter housing many European organizations nestles in a picturesque site carved into the river valleyâs sandstone cliffs. The second largest city in Luxembourg, Esch-sur-Alzette, lies in the extreme southwest and is a traditional iron- and steel-making centre. Its growth, like that of the neighbouring iron and steel centres of PĂ©tange, Differdange, and Dudelange, has slowed since the shrinkage of those industries in western Europe in the late 20th century. The remainder of the countryâs population lives in towns and villages of relatively small size. Many of Luxembourgâs villages date from ancient Celtic and Roman times or originated in Germanic and Frankish villages after about 400 ce. In addition, many medieval castle villages continue to thrive, centuries after the castles themselves fell into ruin.





