About Luxembourg
Luxembourg is a small landlocked country located in Western Europe. It is bordered by Belgium to the west and north, Germany to the east, and France to the south. Despite its small size, Luxembourg is one of the richest countries in the world and has a high standard of living.

i) Capital:
Luxembourg City
ii) Official Languages: Luxembourgish, French, and German. Luxembourgish is the national language, while French is used in legal and administrative matters, and German is used in the media.
iii) Population:
Around 650,000 (as of 2024)
iv) Area:
2,586 square kilometers (about 998 square miles), making it one of the smallest countries in Europe.
v) Currency:
Euro (€)

Luxembourg

History
Early History
i) Roman Era: The area was part of the Roman Empire. Roman roads and settlements existed in what is now Luxembourg.
ii) 963 AD: Considered the birth of Luxembourg when Count Siegfried acquired a rocky promontory known as Lucilinburhuc (little fortress), where he built a castle — the origins of Luxembourg City.

Middle Ages
i) The House of Luxembourg became a powerful European dynasty. Several members became Holy Roman Emperors (notably Henry VII and Charles IV).
ii) Luxembourg’s strategic location made it a coveted territory, often caught in wars between European powers.

Foreign Rule
i) Over the centuries, Luxembourg was ruled by Spain, France, Austria, and later Prussia, due to dynastic marriages, treaties, and wars.
ii) It became a Duchy in the 14th century and eventually a Grand Duchy in 1815 after the Congress of Vienna.

Personal Union with the Netherlands (1815–1890)
i) Luxembourg was in a personal union with the Dutch monarchy but had a separate political structure.
ii) In 1890, the union ended when King William III died without a male heir and Adolphe of Nassau became Grand Duke of Luxembourg.

Modern Independence and Neutrality
i) 1867 Treaty of London: Confirmed Luxembourg’s independence and neutrality, and required the dismantling of its fortress.
ii) Despite neutrality, Germany invaded during WWI and WWII.
iii) During WWII, Luxembourg was annexed by Nazi Germany, and many Luxembourgers resisted occupation.

Post-War and European Integration
i) After WWII, Luxembourg abandoned its neutrality and became a founding member of NATO, the United Nations, Benelux and the European Economic Community (now the EU).
ii) Today, Luxembourg is one of the core members of the European Union and hosts major EU institutions like the European Court of Justice.

Economy
Overview
Luxembourg has one of the most advanced and prosperous economies in the world, often ranking among the top countries by GDP per capita. Despite its small size, it plays a significant role in global finance and business.

Key Economic Highlights
i) GDP per capita (PPP):
Among the highest globally — over $130,000 USD (as of recent estimates).
ii) Economic Structure - Predominantly service-based, especially in:
a) Banking & Financial Services;
b) Insurance;
c) Investment funds;
d) ICT and Fintech;
e) Financial Hub: It's one of the world's largest investment fund centers, second only to the U.S. (Luxembourg is a major base for UCITS funds).

Major Sectors
i) Services (mainly financial): ~85% of GDP
ii) Industry: ~13% (steel, chemicals, machinery)
iii) Agriculture: <2%

Trade & Investment
i) Export-Oriented Economy:
Key exports include machinery, equipment, steel, and financial services.
ii) Foreign Direct Investment (FDI):
Luxembourg is a top destination and source of FDI, thanks to its favorable tax laws and regulatory environment.

Labor Market
i) High employment levels, low unemployment (~5%).
ii) Large cross-border workforce:
Many workers commute from France, Germany, and Belgium daily.
iii) Multilingual and highly skilled workforce.