Luxembourg

**Luxembourg**, officially the **Grand Duchy of Luxembourg**, is a landlocked country in Western Europe. It is bordered by Belgium, Germany and France.

## History

### Twentieth and Early Twenty-First Century

In August 1914, Imperial Germany violated Luxembourg's neutrality by invading it in its war against France. This allowed Germany to use the railway lines, while at the same time denying them to France. Nevertheless, despite the German occupation, Luxembourg was allowed to maintain much of its independence and political mechanisms.

In 1940, after the outbreak of World War II, Luxembourg's neutrality was again violated when the Wehrmacht of Nazi Germany entered the country, "entirely without justification". In contrast to the First World War, under the German occupation of Luxembourg during World War II the country was treated as German territory and informally annexed to the adjacent province of the Third Reich. A government in exile based in London supported the Allies, sending a small group of volunteers who participated in the Normandy invasion. Luxembourg was liberated in September 1944, and became a founding member of the United Nations in 1945. Luxembourg's neutral status under the constitution formally ended in 1948, and in 1949 it became a founding member of NATO.

In 1951, Luxembourg became one of the six founding countries of the European Coal and Steel Community, which in 1957 would become the European Economic Community and in 1993 the European Union, and in 1999 Luxembourg joined the euro currency area. In 2005, a referendum on the EU treaty establishing a constitution for Europe was held in Luxembourg.

## Government and Politics

Luxembourg is a parliamentary democracy headed by a constitutional monarch. Under the constitution of 1868, executive power is exercised by the Grand Duke and the cabinet, which consists of several other ministers. The Grand Duke has the power to dissolve the legislature, in which case new elections must be held within three months. However, since 1919, sovereignty has resided with the Nation, exercised by the Grand Duke in accordance with the Constitution and the law.

Legislative power is vested in the Chamber of Deputies, a unicameral legislature of sixty members, who are directly elected to five-year terms from four constituencies. A second body, the Council of State, composed of twenty-one ordinary citizens appointed by the Grand Duke, advises the Chamber of Deputies in the drafting of legislation.

### Administrative Divisions

Luxembourg is divided into 3 districts, which are further divided into 12 cantons and then 106 communes. Twelve of the communes have city status, of which the city of Luxembourg is the largest. The districts are Diekirch, Grevenmacher, and Luxembourg.

### Foreign Relations

Luxembourg has long been a prominent supporter of European political and economic integration. In efforts foreshadowing European integration, Luxembourg and Belgium in 1921 formed the Belgium-Luxembourg Economic Union (BLEU) to create an inter-exchangeable currency and a common customs regime. Luxembourg is a member of the Benelux Economic Union and was one of the founding members of the European Economic Community (now the European Union). It also participates in the Schengen Group (named after the Luxembourg village of Schengen where the agreements were signed), whose goal is the free movement of citizens among member states. At the same time, the majority of Luxembourgers have consistently believed that European unity makes sense only in the context of a dynamic transatlantic relationship, and thus have traditionally pursued a pro-NATO, pro-US foreign policy.