Luxembourg: Government

Principal Government Officials

Chief of State: Grand Duke Henri
Head of Government: Prime Minister Jean-Claude Juncker

Luxembourg has a parliamentary form of government with a constitutional monarchy. Under the constitution of 1868, as amended, executive power is exercised by the Grand Duke and the Council of Government (cabinet), which includes the prime minister, who serves as head of government. The prime minister is the leader of the political party or coalition of parties having the most seats in parliament, known as the Chamber of Deputies.

Legislative power is vested in the Chamber of Deputies, the members of which are elected directly to 5-year terms. A second body, the "Conseil d'Etat" (Council of State), composed of 21 citizens appointed by the Grand Duke, advises the Chamber of Deputies in the drafting of legislation. The Council's opinions have no binding effect, and the responsibilities of its members are in addition to their normal professional duties.

Luxembourg law is a composite of local practice, legal tradition, and French, Belgian, and German systems, as well as European Union law. The apex of the judicial system is the Superior Court, whose judges are appointed by the Grand Duke.

POLITICAL CONDITIONS
Luxembourg's political system has a strong local focus. National politicians very often begin their careers and establish a political base serving as mayors, and members of the Chamber of Deputies are elected from one of four regions. The political culture favors consensus, and the parties coexist within the context of broad agreement on key issues, including the value of deep European integration. National elections are held at least every 5 years and municipal elections every 6 years. Elections for the Chamber of Deputies were held in June 2009.

Since the end of World War II the Christian Social People’s Party (CSV) has been part of the governing coalition and usually the dominant party. The only exception was from 1974-1979 when the CSV was in opposition to a governing coalition led by the center-right Democratic Party (DP). The CSV resembles Christian democratic parties in other west European countries and enjoys broad popular support. Its leader, Prime Minister Jean-Claude Juncker, in power since 1995, is the longest-serving head of government in the European Union.

The Socialist Party (LSAP) is a center-left party similar to most social democratic parties in Europe. Initially founded by a workers’ movement and a main defender of universal suffrage in 1919, the LSAP defends state intervention in the economy and the sustainability of the welfare system. Part of the government from 1984 to 1999, it lost its junior coalition status to the Democratic Party only to regain it in the 2004 elections.

The center-right Democratic Party (DP) draws much of its support from civil servants, the professions, and urban middle class. Like other West European liberal (i.e., libertarian) parties, it advocates both social legislation and minimum government involvement in the economy. It also is strongly pro-NATO. In the opposition from 1984 to 1999, the DP overcame the LSAP to claim the role of junior partner in the government from 1999-2004. It is currently again in the opposition.

Other notable parties include the Green Party, which has received growing support since it was officially formed in 1983. It opposes both nuclear weapons and nuclear power and supports environmental and ecological preservation measures. The Greens generally oppose Luxembourg's military policies, but the party has shown some openness to peacekeeping missions. The ADR (Alternative Democratic Reform Party) when elected in 2004 was known as the Action Committee for Democracy and Pension Rights. The Left (former communist) party has one seat in the 60-member Chamber of Deputies.

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, which allows for the free movement of citizens among member states. At the same time, Luxembourgers have consistently recognized the value of a dynamic, transatlantic relationship, and the Grand Duchy traditionally has pursued a pro-NATO, pro-U.S. foreign policy.

Luxembourg is the site of the European Court of Justice, European Court of Auditors, and European Investment Bank, as well as other vital EU organs. The Secretariat of the European Parliament is located in Luxembourg. The EU stability fund created in response to effects of the international financial crisis is based in Luxembourg.

Luxembourg’s official development assistance (ODA) in 2009 reached €298 million ($415 million), or about 1.04% of its gross national income. This reportedly was the third-highest level of any country. Luxembourg ranked 16th among the top world donors of development aid to Afghanistan, with total aid of $1,488,399,000 as of 2010. In 2010 it donated $700,280 to the Afghanistan program, as well as $123,305 toward improving maternal and infant health in Kabul and Kandahar. It also donated $650,000 to help the flood victims of the tragedy in Pakistan in summer 2010.

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