The Grand Duchy of Luxembourg, a constitutional monarchy, is an independent
sovereign state, tucked between Belgium , France and Germany . The country is 84
km (51.7 miles) long and 52 km (32 miles) wide, encompassing an area of 2586
square kilometres (999 square miles) with a population of 459 500 inhabitants
(official estimate Jan 1, 2006).
The country is divided into two clearly defined REGIONS:
•
The "Eisléck" or 'Oesling' in the north, which is part of the
Ardennes, on the western rim of the Eifel , and covers one-third of the
territory. It is a wooded country of great scenic beauty. Highest point: 555
metres (1823 feet).
•
The 'Good country' in the centre and the south, covering the remainder of
the territory, is mainly rolling farmland and woods. Average height: 270 metres
(900 feet). Culminating point 426 metres (1400 feet). It is bordered in the east
by the wine-producing valley of the Moselle, and in the extreme south west by a
narrow strip of red earth which forms the Luxembourg iron-ore
basin.
History
The written history of Lucilinburhuc (i.e. Luxembourg ) starts in the year
963, when Siegfried, Count of the Ardennes, and founder of the Luxembourg
Dynasty , had a castle built on the territory of the present-day capital of
Luxembourg . This castle was the origin of the establishment of a town, which
later was to develop into a formidable fortress , known by the name of '
Gibraltar of the North'.
After a long period of foreign sovereignty
(Burgundian/ Spanish/ French/ Austrian / ...), the Congress of Vienna settled
the destiny of the country, by raising it to the rank of Grand Duchy, and by
giving it as personal property to the King of the Netherlands William I of
Orange-Nassau. The personal union between Luxembourg and the Netherlands lasted
until 1890. During this period the political independence and autonomy were
strengthened, and the democratic institutions were developed.
The 11th
of May 1867 is one of the most important dates in national history. The Treaty
of London reaffirmed Luxembourg 's territorial integrity, and the political
autonomy which had already been granted by the Treaty of Vienna of 1839.
Furthermore, Luxembourg was declared perpetually neutral, and the great powers
agreed to guarantee and to protect the neutrality of the Grand Duchy.
Since 1890, when the Crown of the Grand Duchy passed to the elder branch
of the House of Nassau , Luxembourg has had its own Dynasty. The present ruler,
H.R.H. Grand Duke Henri , succeeded his father, Grand Duke Jean to the throne in
October 2000.
Executive power is in the hands of the Grand Duke and a
Cabinet of 12 ministers. The legislative power rests with a Parliament (Chamber
of Deputies) elected by men and women over 18, all of whom in Luxembourg have
the right and duty to vote.
Despite its neutrality, Luxembourg was
occupied twice by German troops during the two World Wars. The Battle of the
Bulge was to a great extent fought on Luxembourg territory. In 1948, the country
gave up its neutrality, to join the various economic, political, and military
organisations of Europe .
Economy
It was the discovery of the iron ore around 1850 which marked the turning
point for Luxembourg and meant its economic take-off. An important steel
industry came into being in the south-western corner of the country, drawing
tens of thousands of foreign workers into the ore mines and steel factories, and
bringing prosperity to the whole country.
The steel exports constitute
one quarter of the value of the Luxembourg export trade. The Arcelor group alone
(previously known as ARBED), produces 90% of the whole Luxembourg steel output.
In spite of severe labour-shedding during the eighties, Arcelor remains the
largest private employer in the country. Arcelor is the number one steel company
in the world with a turnover of 32.6 billion euros in 2005. The company holds
leadership positions in its main markets: automotive, construction, household
appliances and packaging as well as general industry. In 2006, Arcelor employs
110,000 associates in over 60 countries.
Since the end of World War II,
great efforts have been made to bring diversity into the former monolithic
industry. Aluminium, glass, cement, tyres, magnetic tapes and computer
manufacturers have established plants, dams have been built in Esch-sur-Sûre and
Rosport; Vianden houses Europe's second largest pumping station producing peak
hydro-electricity; the ASTRA satellites are controlled from Luxembourg.
Tax
rebates, help in obtaining credits, and a host of other incentives are offered
to companies intending to set up plant in the Grand Duchy. However, despite
these continuing efforts, Luxembourg 's industrial labour is dropping in
numbers, marking a slide into the service sector.
Luxembourg plays a
major role as a prominent international financial centre . Numerous banks and
important investment trusts have settled in the capital, as the fiscal
legislation, which dates back to 1929, favours Banks and Holding Companies.
Luxembourg as an international centre numbers more than 14000 domiciled
Holding Companies , some 8500 investment funds and 220 banks which represent the
greatest banking concentration in the European Union.
In parallel with
the growth of private banking, which year on year emerges as the core activity
for Luxembourg 's banks, the development of other sectors, such as Investment
Fund Promotion and Services, as well as Life Insurance are reinforcing
Luxembourg 's claim to be Europe 's premier centre for all forms of Personal
Investment business.
Its economic structure and its geographical
position have necessarily led Luxembourg into a close co-operation with other
countries, and particularly with Belgium since 1921, and with Belgium and the
Netherlands since the second World War, with the creation of BENELUX, an
economic Union which was the first step towards the present larger European
Union.
Population & Languages
Of the country's 459 500 inhabitants (official estimate 2006) , some 90,000
live in Luxembourg-city and its immediate surroundings. The number of foreign
residents in Luxembourg has already exceeded 32 % of the population. It is the
highest proportion of foreigners of any EU country.
'
Lëtzebuergesch ' is the everyday spoken language of the people,
and the symbol of the Luxembourgers national identity. Since the creation of a
dictionary and a grammar, this former Mosel-Frankish dialect is now recognised
as the national language (since 1984), while both French and German remain the
official languages.
Both German and French culture meet in Luxembourg .
Franco-German bilinguism, without any language differences, is a typical aspect
of the country's social structure. If both German and French are used in the
press, in political and in religious life, French is nevertheless the official
language of the administration, jurisdiction, parliament, education, and of some
literary circles. Public offices though are held to answer -wherever possible-
in the language they are addressed in.
This peculiar language situation is a
direct result of the size of the country, and its historic associations with
both France and Germany . When going abroad -which after all, is not very far-
the Luxembourgers have to speak other languages, simply because their own is not
understood elsewhere.
