1989 Edition

Climate

modified continental with mild winters, cool summers

Coastline

none — landlocked

Comparative area

slightly smaller than Rhode Island

Environment

deforestation

Flag

two equal horizontal bands of blue (top) and red with a gold crown on the hoist side of the blue band

Labor force

161,000; one-third of labor force is foreign workers, mostly from Portugal, Italy, France, Belgium, and FRO; 48.9% services, 24.7% industry, 13.2% government, 8.8% construction, 4.4% agriculture (1984)

Land boundaries

359 km total; Belgium 148 km, France 73 km, FRG 138 km

Land use

24% arable land; 1% permanent crops; 20% meadows and pastures; 21% forest and woodland; 34% other

Language

Luxembourgish, German, French; many also speak English

Literacy

100%

Maritime claims

none — landlocked

Natural resources

iron ore (no longer exploited)

Note

landlocked

Organized labor

100,000 (est.) members of four confederated trade unions

Religion

97% Roman Catholic, 3% Protestant and Jewish

Terrain

mostly gently rolling uplands with broad, shallow valleys; uplands to slightly mountainous in the north; steep slope down to Moselle floodplain in the southeast

Total area

2,586 km2; land area: 2,586 km2

Birth rate

12 births/ 1,000 population (1990)

Death rate

10 deaths/ 1,000 population (1990)

Ethnic divisions

Celtic base, with French and German blend; also guest and worker residents from Portugal, Italy, and European countries

Infant mortality rate

7 deaths/ 1,000 live births (1990)

Life expectancy at birth

72 years male, 80 years female (1990)

Nationality

noun — Luxembourger(s); adjective— Luxembourg

Net migration rate

9 migrants/ 1 ,000 population (1990)

Population

383,813 (July 1990), growth rate 1.1% (1989)

Total fertility rate

1.5 children born/ woman (1990)

Administrative divisions

3 districts; Diekirch, Grevenmacher, Luxembourg

Capital

Luxembourg

Communists

500 party members (1982)

Constitution

17 October 1868, occasional revisions

Diplomatic representation

Ambassador Andre PHILIPPE; Chancery at 2200 Massachusetts Avenue NW, Washington DC 20008; telephone (202) 265-4171; there are Luxembourg Consulates General in New York and San Francisco; US — Ambassador Jean B. S. GERARD; Embassy at 22 Boulevard Emmanuel-Servais, 2535 Luxembourg City (mailing address is APO New York 09132); telephone [352]

Elections

Chamber of Deputies — last held on 18 June 1989 (next to be held by June 1994); results— CSV 31.7%, LSAP 27.2%, DP 16.2%, Greens 8.4%, PAC 7.3%, KPL 5.1%, others 4%; seats— (60 total) CSV 22, LSAP 18, DP 1 1, Greens 4, PAC 4, KPL 1, others 4

Executive branch

grand duke, prime minister, vice prime minister. Council of Ministers (cabinet)

Flag

three equal horizontal bands of red (top), white, and light blue; similar to the flag of the Netherlands which uses a darker blue and is shorter; design was based on the flag of France

Independence

1839

Judicial branch

Superior Court of Justice (Cour Superieure de de Justice)

Leaders

Chief of State — Grand Duke JEAN (since 12 November 1964); Heir Apparent Prince HENRI (son of Grand Duke Jean, born 16 April 1955); Head of Government — Prime Minister Jacques SANTER (since 21 July 1984); Deputy Prime Minister Jacques F. POOS (since 21 July 1984) Political parties and leaders: Christian Social Party (CSV), Jacques Santer; Socialist Workers Party (LSAP), Jacques Poos; Liberal (DP), Colette Flesch; Communist (KPL), Rene Urbany; Green Alternative (GAP), Jean Huss

Legal system

based on civil law system; accepts compulsory ICJ jurisdiction

Legislative branch

unicameral Chamber of Deputies (Chambre des Deputes); note — the Council of State (Conseil d'Etat) is an advisory body whose views are considered by the Chamber of Deputies

Long-form name

Grand Duchy of Luxembourg

Member of

Benelux, BLEU, CCC, Council of Europe, EC, EIB, EMS, FAO, GATT, IAEA, IBRD, ICAO, IDA, IEA, IFAD, IFC, ILO, IMF, INTELSAT, INTERPOL, IOOC, IPU, ITU, NATO, OECD, UN, UNESCO, UPU, WEU, WHO, WIPO, WMO

National holiday

National Day (public celebration of the Grand Duke's birthday), 23 June (1921)

Other political or pressure groups

group of steel industries representing iron and steel industry, Centrale Paysanne representing agricultural producers; Christian and Socialist labor unions; Federation of Industrialists; Artisans and Shopkeepers Federation

Suffrage

universal and compulsory at age

Type

constitutional monarchy

Agriculture

livestock, vegetables, corn, wheat, potatoes, grapes

Aid

none

Budget

revenues $171 million; expenditures $189 million, including capital expenditures of NA (1986)

Currency

Swiss franc, franken, or franco (plural — francs, franken, or franchi); 1 Swiss franc, franken, or franco (SwF) = 100 centimes, rappen, or centesimi

Electricity

23,000 kW capacity; 150 million kWh produced, 5,340 kWh per capita (1989)

Exchange rates

Swiss francs, franken, or franchi (SwF) per US$1— 1.5150 (January 1990), 1.6359 (1989), 1.4633 (1988), 1.4912 (1987), 1.7989 (1986), 2.4571 (1985)

Exports

$807 million; commodities — small specialty machinery, dental products, stamps, hardware, pottery; partners— EC 40%, EFTA 26% (Switzerland 19%) (1986)

External debt

SNA

Fiscal year

calendar year

GNP

SNA, per capita SNA; real growth rate NA%

Imports

$NA; commodities — machinery, metal goods, textiles, foodstuffs, motor vehicles; partners — NA

Industrial production

growth rate NA%

Industries

electronics, metal manufacturing, textiles, ceramics, Pharmaceuticals, food products, precision instruments, tourism

Inflation rate (consumer prices)

1.5% (1987 est.)

Overview

The prosperous economy is based primarily on small-scale light industry and some farming. Industry accounts for 54% of total employment, the service sector 42% (mostly based on tourism), and agriculture and forestry 4%. The sale of postage stamps to collectors is estimated at $10 million annually and accounts for 10% of revenues. Low business taxes (the maximum tax rate is 20%) and easy incorporation rules have induced about 25,000 holding or so-called letter box companies to establish nominal offices in Liechtenstein. Such companies, incorporated solely for tax purposes, provide an additional 30% of state revenues. The economy is tied closely to that of Switzerland in a customs union, and incomes and living standards parallel those of the more prosperous Swiss groups.

The stable economy features moderate growth, low inflation, and negligible unemployment. Agriculture is based on small but highly productive familyowned farms. The industrial sector, until recently dominated by steel, has become increasingly more diversified, particularly toward high-technology firms. During the past decade growth in the financial sector has more than compensated for the decline in steel. Services, especially banking, account for a growing proportion of the economy. Luxembourg participates in an economic union with Belgium on trade and most financial matters and is also closely connected economically with the

Unemployment rate

0. 1 % (December 1986)

Airports

none

Civil air

no transport aircraft

Highways

130.66 km main roads, 192.27 km byroads

Note

defense is responsibility of Switzerland Troisvierg

Railroads

18.5 km 1.435-meter standard gauge, electrified; owned, operated, and included in statistics of Austrian Federal Railways

Telecommunications

automatic telephone system; 25,400 telephones; stations — no AM, no FM, no TV Defense Forces