More than 9,000 holding companies are established in Luxembourg. Government policies promote the development of Luxembourg as an audiovisual and communications center. SES presently operates five satellites with two more to be launched before the year 2000. Luxembourg offers a favorable climate to foreign investment. Successive governments have effectively attracted new investment in medium, light, and high-tech industry.
Incentives cover taxes, construction, and plant equipment.
Labor relations have been peaceful since the 1930s. Most industrial workers are organized by unions linked to one of the major political parties. Representatives of business, unions, and government participate in the conduct of major labor negotiations. Foreign investors often cite Luxembourg's labor relations as a primary reason for locating in the Grand Duchy. Most farmers are engaged in dairy and meat production.