In 1948, the country gave up its neutrality, to join the various economic, political, and military organisations of Europe. Already forming a close economic union with Belgium since 1921, the Grand Duchy is a founder member of the EU, and was host to the first European institutions in 1953. Moreover, the sessions of the Council of Ministers take place in Luxembourg three months in the year. From July to December 1997, Luxembourg held the Presidency of the European Union. The stable, prosperous economy features moderate growth, low inflation and negligible unemployment.
Agriculture is based on small but highly productive family-owned farms.
The industrial sector, until recently dominated by steel, has become more diversified, particularly toward high-technology firms. Goodyear, which employs 3840 and Du Pont de Nemours and Guardian, which employ 1280. Services, especially banking, account for a growing proportion of the economy. 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. More recently still, Luxembourg has reaffirmed its importance as a centre for Eurobonds with a big emphasis in ECUs, and the future seems likely to attract more and more investment funds in European Currency Units to this comparatively young, but steadily growing centre.