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.

Western Europe, between France and Germany

slightly smaller than Rhode Island

modified continental with mild winters, cool summers

mostly gently rolling uplands with broad, shallow valleys; uplands to slightly mountainous in the north; steep slope down to Moselle flood plain in the southeast

iron ore (no longer exploited), arable land

air and water pollution in urban areas, soil pollution of farmland

landlocked; the only Grand Duchy in the world

491,775 (July 2010 est.)

11.73 births/1,000 population (2010 est.)

8.44 deaths/1,000 population (July 2010 est.)

8.44 migrant(s)/1,000 population (2010 est.)

1.78 children born/woman (2010 est.)

fewer than 500 (2003 est.)

fewer than 100 (2003 est.)

Luxembourger 63.1%, Portuguese 13.3%, French 4.5%, Italian 4.3%, German 2.3%, other EU 7.3%, other 5.2% (2000 census)

Roman Catholic 87%, other (includes Protestant, Jewish, and Muslim) 13% (2000)

Luxembourgish (national language), German (administrative language), French (administrative language)

constitutional monarchy

3 districts; Diekirch, Grevenmacher, Luxembourg

1839 (from the Netherlands)

National Day (Birthday of Grand Duchess Charlotte) 23 June; note - the actual date of birth was 23 January 1896, but the festivities were shifted by five months to allow observance during a more favorable time of year

17 October 1868; occasional revisions

based on civil law system; accepts compulsory ICJ jurisdiction

18 years of age; universal and compulsory

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

judicial courts and tribunals (three Justices of the Peace, two district courts, and one 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

Alternative Democratic Reform Party or ADR [Robert MEHLEN]; Christian Social People's Party or CSV [Michel WOLTER]; dei Lenk/la Gauche (the Left); Democratic Party or DP [Claude MEISCH]; Green Party [Francois BAUSCH]; Luxembourg Socialist Workers' Party or LSAP [Alex BODRY]; other minor parties

ABBL (bankers' association); ALEBA (financial sector trade union); Centrale Paysanne (federation of agricultural producers); CEP (professional sector chamber); CGFP (trade union representing civil service); Chambre de Commerce (Chamber of Commerce); Chambre des Metiers (Chamber of Artisans); FEDIL (federation of industrialists); Greenpeace (environment protection); LCGP (center-right trade union); Mouvement Ecologique (protection of ecology); OGBL (center-left trade union)

ADB (nonregional member), Australia Group, Benelux, CE, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, FATF, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, NATO, NEA, NSG, OAS (observer), OECD, OIF, OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNRWA, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO, ZC

three equal horizontal bands of red (top), white, and light blue; similar to the flag of the Netherlands, which uses a darker blue and is shorter; the coloring is derived from the Grand Duke's coat of arms (a red lion on a white and blue striped field)

This small, stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - has historically featured 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, which now accounts for about 28% of GDP, has more than compensated for the decline in steel. Most banks are foreign owned and have extensive foreign dealings. The economy depends on foreign and cross-border workers for about 60% of its labor force. Luxembourg, like all EU members, suffered from the global economic crisis that began in late 2008. Following strong expansion from 2004 to 2007, Luxembourg's economy contracted 0.9% in 2008 and 3.9% in 2009. Nonetheless, the country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks third in the world, after Liechtenstein and Qatar, and is the highest in the EU. Turmoil in the world financial markets and lower global demand during 2008-09 prompted the government to inject capital into the banking sector and implement stimulus measures to boost the economy. Government stimulus measures and support for the banking sector, however, led to a 5% government budget deficit in 2009.

$39.14 billion (2009 est.)

$40.52 billion (2008 est.)

$40.51 billion (2007 est.)

$51.74 billion (2009 est.)

205,000 of whom 125,400 are foreign cross-border workers commuting primarily from France, Belgium, and Germany (2009 est.)

17.4% of GDP (2009 est.)

14.9% of GDP (2009 est.)

8% of GDP (2008 est.)

3% (31 December 2008)

5% (31 December 2007)

$369.6 billion (31 December 2008)

$100.9 billion (31 December 2007)

$NA (31 December 2009)

$66.46 billion (31 December 2008)

$166.1 billion (31 December 2007)

grapes, barley, oats, potatoes, wheat, fruits; dairy and livestock products

banking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminum, tourism

2.696 billion kWh (2007 est.)

6.525 billion kWh (2007 est.)

2.483 billion kWh (2008 est.)

6.83 billion kWh (2008 est.)

0 bbl/day (2009 est.)

50,720 bbl/day (2009 est.)

168 bbl/day (2008 est.)

60,030 bbl/day (2008 est.)

0 bbl (1 January 2009 est.)

1.268 billion cu m (2009 est.)

1.263 billion cu m (2009 est.)

0 cu m (1 January 2009 est.)

$9.351 billion (2009 est.)

$3.176 billion (2008 est.)

$14.18 billion (2009 est.)

$21.43 billion (2008 est.)

machinery and equipment, steel products, chemicals, rubber products, glass

Germany 19.78%, France 15.87%, Belgium 11.07%, UK 7.96%, Italy 7.49%, Netherlands 4.31% (2009)

$18.12 billion (2009 est.)

$27.72 billion (2008 est.)

minerals, metals, foodstuffs, quality consumer goods

Belgium 27.22%, Germany 23.14%, China 18.62%, France 8.85%, Netherlands 5.06% (2009)

$810 million (31 December 2009 est.)

$397.8 million (31 December 2008 est.)

$1.994 trillion (30 June 2009)

$2.02 trillion (31 December 2008)

$NA (31 December 2009 est.)

$11.21 billion (31 December 2008 est.)

euros (EUR) per US dollar - 0.7338 (2009), 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005)

Luxembourg has a long tradition of operating radio and TV services to pan-European audiences and is home to Europe's largest privately-owned broadcast media group, the RTL group, which operates 45 television stations and 31 radio stations in Europe; also home to Europe's largest satellite operator, Societe Europeenne des Satellites (SES); domestically, the RTL group operates TV and radio networks; other domestic private radio and TV operators and French and German stations are available; satellite and cable TV services are accessible (2008)

37 km (on Moselle River) (2008)

17-25 years of age for male and female voluntary military service; soldiers under 18 are not deployed into combat or with peacekeeping missions; no conscription; Luxembourg citizen or EU citizen with 3-year residence in Luxembourg (2010)

0.9% of GDP (2005 est.)