PROFILE

OFFICIAL NAME:
Grand Duchy of Luxembourg

Geography
Area: 2,586 sq. km. (999 sq. mi.; about half the size of Rhode Island).
Cities: Capital--Luxembourg City (pop. 76,600). Other cities --Esch-sur-Alzette (pop. 28,200), Differdange (pop. 19,000), Dudelange (pop. 17,800).
Terrain: Continuation of Belgian Ardennes in the north, heavily forested and slightly mountainous; extension of French Lorraine plateau in the south, with open, rolling countryside.
Climate: Modified continental, rainy, with mild summers and moderate snowfall in winter.

People
Nationality: Noun--Luxembourger(s). Adjective--Luxembourgian
Population (2006): 459,500
Annual growth rate (2006): 0.99%
Ethnic groups: Celtic base with French and German blend; large communities of ethnic Portuguese, Italians, French, Belgians, and Germans.
Religion: Historically and predominantly Roman Catholic. However, Luxembourgian law forbids the collection of data on religious practices.
Official languages: Luxembourgish, French, and German; English is widely spoken.
Education: Years compulsory--9. Attendance--100%. Literacy--100%.
Health: Life expectancy (2000-02)--Avg. 78 years; males: 75 years, females 81 years. Infant mortality rate (2005)--3/1,000.
Labor force (2005): 311,200, of which 38% commute from neighboring countries. European Union institutions employ 8,300.
Services: (non-financial): 53%; (financial): 11%; Commerce: 14%; Industrial and manufacturing: 11% Construction: 10%; Agriculture: 1%
Unemployment rate (2005): 4.2%, up from 3.9% in 2004

Government
Type: Constitutional monarchy.
Independence: 1839.
Constitution: 1868.
Branches: Executive--Grand Duke (head of state, ceremonial), Prime Minister (head of government). Legislative--unicameral parliament (Chamber of Deputies with Council of State serving as a consultative body). Judicial--Superior Court.
Political parties in parliament: Christian Social Union (CSV), Socialist Workers’ Party (LSAP), Democratic Party (DP), Green Party, Alternative Democratic Reform Party (ADR).
Suffrage: Universal over age of 18.
Government budget (2005): $9.587 billion

Economy
GDP (2005): $36.5 billion
Currency: euro (€), exchange rate (Sept. 25, 2006: €1 = $1.2756)
Annual growth rate (2005): 4%
Per capita income (2005): $69,527
Inflation rate (2005): 3.8%
Natural resources: iron ore, timber
Agriculture (2003: 0.6% of GDP): Dairy, wine, forestry, animal feed crops. Arable land: 24%; Forested land: 21%
Services (2003: 78.9% of GDP): Banking and financial services predominate
Industry (2003: 20.5% of GDP): Steel, chemicals
Trade (2005): Exports: $12.97 billion: steel & other metallic products, chemicals, processed wood products, machinery & other manufactured equipment. Major markets: other European Union countries (esp. Germany, France, and Belgium).
Imports: $18.04 billion: Machinery & other manufactured equipment, raw materials, chemicals, food products. Major suppliers: other European Union countries (esp. Belgium, Germany, and France).

HISTORY
After 400 years of domination by various European nations, Luxembourg was granted the status of Grand Duchy by the Congress of Vienna on June 9, 1815. Although Luxembourg considers 1835 (Treaty of London) to be its year of independence, it was not granted political autonomy until 1839 under King William I of the Netherlands, who also was the Grand Duke of Luxembourg. In 1867, Luxembourg was recognized as independent and guaranteed perpetual neutrality. After being occupied by Germany in both World Wars, Luxembourg abandoned neutrality and became a charter member of the North Atlantic Treaty Organization (NATO) in 1949. It is also one of the six original members of the European Union, formed in 1951 as the European Coal and Steel Community (ECSC).

The present sovereign, Grand Duke Henri, succeeded his father, Grand Duke Jean, on October 7, 2000. Grand Duke Jean announced his decision to abdicate in December 1999, after a 35-year reign.

The national language of Luxembourg is Luxembourgish, a blend of Dutch, old German, and Frankish elements. The official language of the civil service, law, and parliament is French, although criminal and legal debates are conducted partly in Luxembourgish and police case files are recorded in German. German is the primary language of the press. French and German are taught in the schools, with German spoken mainly at the primary level and French at the secondary level.

GOVERNMENT
Luxembourg has a parliamentary form of government with a constitutional monarchy by inheritance. Under the constitution of 1868, as amended, executive power is exercised by the Grand Duke and the Council of Government (cabinet), which includes the prime minister, who serves as head of government. The prime minister is the leader of the political party or coalition of parties having the most seats in parliament, known as the Chamber of Deputies.

Legislative power is vested in the Chamber of Deputies, the members of which are elected directly to 5-year terms. A second body, the "Conseil d'État" (Council of State), composed of 21 ordinary citizens appointed by the Grand Duke, advises the Chamber of Deputies in the drafting of legislation. The Council’s opinions have no binding effect, and the responsibilities of its members are in addition to their normal professional duties.