Country Information on Luxembourg 

Terrain

The country may be divided into two distinct geographical regions. The rugged and fertile woody uplands of the Ardennes in the north account for 68% of the land area and the fertile lowlands of the south called Bon Pays cover 32% of the land area and are cut by deep valleys. Most of the rivers drain into the Sauer, which in turn flows into the Moselle River on the eastern border. The Ardennes Mountains extend into North Luxembourg.

Climate

Luxembourg has a temperate and mild climate with cool summers and mild winters, although the northern winters can be severe. The high peaks of the Ardennes in the north shelter the country from the vigorous North Sea winds. Average temperature ranges in the capital are from -1 to 2 C° in January to 13 to 23 C° in July.

Fauna/Flora

Luxembourg is considered to be a paradise for anglers, since its lakes and rivers are home to trout, pike, pikeperch, eel, carp and many other types of fish. In the Upper Sûre Natural Park, which is called Luxembourg's Little Switzerland, lies the Upper Sûre Lake, which was dammed up in 1961 and provides a suitable habitat for numerous animal and plant species.

History/Politics

Luxembourg, once part of Charlemagne's empire, became an independent state in 963, when Siegfried, count of Ardennes, became sovereign of Lucilinburhuc ("Little Fortress"). In 1060, Conrad, a descendant of Siegfried, took the title count of Luxembourg. From the 15th to the 18th century, Spain, France, and Austria held the duchy in turn. The Congress of Vienna in 1815 made it a Grand Duchy and gave it to William I, king of the Netherlands. In 1839 the Treaty of London ceded the western part of Luxembourg to Belgium. The eastern part, continuing in personal union with the Netherlands and a member of the German Confederation, became autonomous in 1848 and a neutral territory by decision of the London Conference of 1867, governed by its grand duke. Germany occupied the duchy in World Wars I and II. Luxembourg joined NATO in 1949, the Benelux Economic Union (with Belgium and the Netherlands) in 1948, and the European Economic Community (later the EU) in 1957. In 1961, Prince Jean, son and heir of Grand Duchess Charlotte, was made head of state. His mother abdicated in 1964, and Prince Jean became grand duke.

Crown Prince Henri was sworn in as grand duke in October 2000, replacing his father, Jean, who had been head of state for 26 years. The grand duchy is a constitutional monarchy governed under the revised constitution of 1868. It has a unicameral legislature, the chamber of deputies. The appointed advisory council has some of the powers of an upper house. Luxembourg's grand duke is the titular head of state. The head of government is the prime minister, who is aided by a council of ministers. Jean-Claude Juncker was elected Prime Minister on 1 January 1995.

Economy

The stable, high-income economy features solid growth, low inflation, and low unemployment. Manufacturing, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth in the financial sector has more than compensated for the decline in steel. Luxembourg's distinction as the third largest banking centre in Europe after London and Paris has made it an important business hub with over 7,000 holdings companies setting up headquarters within its borders. Services, especially banking, account for a substantial proportion of the economy. Agriculture is based on small family-owned farms. The economy depends on foreign and trans-border workers for 30% of its labour force. Luxembourg has a custom union with Belgium and the Netherlands, and, as a member of the EU, enjoys the advantages of the open European market. Some 2.5% of the population is employed in the agricultural sector, with 14.3% in manufacturing and 83.2% in the services sector. The country's unemployment rate amounted to 2.7% in 2000.

Culture

Edward Steichen, a pioneer in American photography, is held in high regard in his homeland. Expressionist painter Joseph Kutter brought modern art to Luxembourg. Roger Mandersheid is a respected contemporary writer who often publishes in Luxembourgish.