Key Figures

Chief of State:
Grand Duke Henri
Head of Government:
Prime Minister Xavier Bettel

Overview

Government Name:
Grand Duchy of Luxembourg
Constitution:
Adopted: 1868; Articles include information on the state, its territory, the role of the Grand Duke, rights of citizens, sovereign power, chamber of deputies, public force, finances, and general provisions.
Government Type:
Constitutional Monarchy
Grand Duchy of Luxembourg Flag
Coat of Arms of Grand Duchy of Luxembourg

Government Control of Economy

73.158 Scale ranks countries on a basis of 1-100, with 100 representing the greatest amount of economic autonomy from government intervention.
Source: Heritage Foundation, http://www.heritage.org/index/heatmap (2015)

Country Risk Rating

A1 The political and economic situation is very good. A quality business environment has a positive influence on corporate payment behavior. Corporate default probability is very low on average.
Main Powers Election Process Election Cycle 1
Executive

The Grand Duke appoints prime minister (usually picking the most popular voted candidate) to aid in executory tasks, can dissolve and reinstate the legislative branch. The prime minister is in charge of executory tasks of the government and responsible to the Chamber of Deputies.

The monarchy is hereditary. Following popular elections to the Chamber of Deputies, the leader of the majority party or the leader of the majority coalition usually appointed prime minister by the monarch.

5 years

Judicial

Supreme Court has jurisdiction over all lower courts. The Constitutional Court is in charge of presiding over cases in regards to the constitution.

Judges of both courts appointed by the monarch.

Life appointment

Legislative

Drafts legislation and creates budgets for the government.

60 members elected by open list proportional representation in multi-member constituencies.

5 years

International Relations

Foreign Policy Trends: 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.

Regional Trade Blocs: European Union

Treaties: NATO, Common Security and Defense Policy


International Organization Participation  Source: CIA World Factbook

ADB Australia Group Benelux BIS CD CE
EAPC EBRD ECB EIB EMU ESA
EU FAO FATF IAEA IBRD ICAO
ICC ICRM IDA IEA IFAD IFC
IFRCS ILO IMF IMO Interpol IOC
IOM IPU ISO ITSO ITU ITUC
MIGA NATO NEA NSG OAS OECD
OIF OPCW OSCE PCA Schengen Convention UN
UNCTAD UNESCO UNHCR UNIDO UNIFIL UNRWA
UNSC UPU WCO WHO WIPO WMO
WTO ZC

Note: Click table to see details


Environmental Agreements  Source: CIA World Factbook

Air Pollution Air Pollution-Nitrogen Oxides Air Pollution-Persistent Organic Pollutants Air Pollution-Sulfur 85 Air Pollution-Sulfur 94 Air Pollution-Volatile Organic Compounds
Biodiversity Climate Change Climate Change-Kyoto Protocol Desertification Endangered Species Environmental Modification
Hazardous Wastes Law of the Sea Marine Dumping Ozone Layer Protection Ship Pollution Tropical Timber 06
Wetlands

Note: Click table to see details


Tax Information 2

Tax Authority:
Ministry of Finance
Tax Name:
VAT

Sources:

  1. ElectionGuide http://www.electionguide.org/
  2. EY, http://www.ey.com

CIA World Factbook open_in_new and U.S. Bilateral Relations Fact Sheets open_in_new except where stated otherwise.