Grand-Duchy of Luxembourg

The **Grand-Duchy of Luxembourg** is a country located in Western Europe. Having emerged from the collapse of the Republic of Beauce, the nation is relatively young. Yet, at the same time, it is not; Luxembourg is a recreation of the pre-collapse country of the same name.

## Grand-Duchy of Luxembourg

### System of Government

Unitary Constitutional Monarchy under Military Regime

### Currency

Luxembourgish Euro

Before the collapse, the country enjoyed great prosperity, thanks to various factors such as its steel industry, its banking industry, and the Schengen Treaty which allowed many foreign workers to find employment there. The country's high salaries were the driving attraction for these foreign workers, which made up the majority of the health sector as well as a good percentage of many others. Industries reliant on globalization such as international finance and banking, European law and other European institutions were all factors in the country's prosperity. Meanwhile, the fact that the national debt was at a low level coupled with the revenue from its thriving economy fueled the welfare state.

As the rest of the world collapsed, so did Luxembourg; banking, European institutions, steel exports, and its work pool all dissipated. The result was a chaotic period during which the country effectively dissolved. The reins of power were taken by an emergency government made up of most of the country's parties, which quickly seized control over the capital - but little else. While it was preoccupied with stabilizing its position, building up its army, and dealing with a crime problem, the rest of the country remained lawless.

In 2094, Beauce began Operation Forêt, through which it hoped to conquer the Luxembourg area. The French mostly succeeded, until it came to the capital region; thanks to decades of developing their defenses and infrastructure, the emergency government was able to effectively resist. Yet it was clear that Beauce would eventually win. Thus, a secret coalition of centre-left and centrist parties signed a treaty with the Beaucean military, whereby they would be given amnesty in return for paralyzing the capital's defenses. Following the Battle of Luxembourg, the red banner was hoisted over the Chamber of Deputies, and Grand-Duke Guillaume V and his family were forced into exile in Germany.

During the occupation by Beauce, the country was administered by the military. Nonetheless, the Temporary Military Commissar in charge was a pragmatic and laissez-faire kind of person. As long as the more capitalistic forces in the country kept on the down-low, he would not order them arrested. During this time, there (re-)emerged organizations such as the **Luxembourg Socialist Workers' Party (LSAP/Lëtzebuerger Sozialistesch Aarbechterpartei),** the **Democratic Alliance (DA/Demokratesch Allianz)** and the **Fokus Party (FP/Fokus Partei).** These were to later form the bedrock of the new Luxembourg nation's political landscape.

As Beauce collapsed in 2111, Luxembourg's anti-communist, nationalist and regionalist forces gathered in a special congress, the **Esch Congress**, whereupon it was decided that Luxembourg would secede, like so many other nations were then trying to do. A day later, militia groups marched on the capital. In the ensuing battle, the Beaucean garrison was able to successfully defend itself. However, with communications with Chartres broken up and the future of the Republic looking increasingly bleak, the garrison's officer corps secretly signed a deal with the insurrectionists; in exchange for amnesty and Luxembourgish citizenship, the garrison would let their rebellion succeed. Not long after, the Military Commissar was arrested and the red flag removed from the Chamber of Deputies.