The Grand Duchy of Luxembourg is a parliamentary constitutional monarchy (Grand Duchy) with a head of government - the prime minister - and a head of state - the Grand Duke - who has only formal rights. The government exercises executive power. General elections take place every 5 years. 60 members are elected to a single-chamber legislative body, the Chamber of Deputies. The country is divided into 4 electoral regions, 12 administrative cantons and 105 communes. 12 of the communes have city status, the largest being Luxembourg City. Luxembourg City, together with Brussels and Strasbourg, is one of the three official seats of the European institutions. Luxembourg has three official languages: French, German and Luxemburgish. The first two are official EU languages.
Trade and economy
The most important sectors of Luxembourg’s economy in 2018 were the financial and insurance activities (26.5%), wholesale and retail trade, transport, accommodation and food services (18%) and public administration, defence, education, human health and social work activities (16.7%).
Intra-EU trade accounts for 84% of Luxembourg’s exports (Germany 27%, Belgium 15% and France 14%), while outside the EU 3% go to the United States and 2% to China.
In terms of imports, 88% come from EU Member States (Belgium 35%, Germany 26% and France 11%), while outside the EU 4% come from the United States and 2% from both China and Japan.
Luxembourg in the EU
Council of the EU
In the Council of the EU, national ministers meet regularly to adopt EU laws and coordinate policies. Council meetings are regularly attended by representatives from the Luxembourg government, depending on the policy area being addressed.
Presidency of the Council of the EU
The Council of the EU doesn't have a permanent, single-person president (like e.g. the Commission or Parliament). Instead, its work is led by the country holding the Council presidency, which rotates every 6 months.
During these 6 months, ministers from that country's government chair and help determine the agenda of Council meetings in each policy area, and facilitate dialogue with the other EU institutions.
Dates of Luxembourg presidencies:
Jan-Jun 1960 | Jan-Jun 1963 | Jan-Jun 1966 | Jan-Jun 1969 | Jan-Jun 1972 | Jan-Jun 1976 | Jul-Dec 1980 | Jul-Dec 1985 | Jan-Jun 1991 | Jul-Dec 1997 | Jan-Jun 2005 | Jul-Dec 2015
The Commission is represented in each EU country by a local office, called a "representation".
European Economic & Social Committee
Luxembourg has 5 representatives on the European Economic and Social Committee. This advisory body – representing employers, workers and other interest groups – is consulted on proposed laws, to get a better idea of the possible changes to work and social situations in member countries.
European Committee of the Regions
Luxembourg has 5 representatives on the European Committee of the Regions, the EU's assembly of regional and local representatives. This advisory body is consulted on proposed laws, to ensure these laws take account of the perspective from each region of the EU.
Permanent representation to the EU
Luxembourg also communicates with the EU institutions through its permanent representation in Brussels. As Luxembourg's "embassy to the EU", its main task is to ensure that the country's interests and policies are pursued as effectively as possible in the EU.
Budgets and Funding
How much does Luxembourg pay and receive?
How much each EU country pays into the EU budget is calculated fairly, according to means. The larger your country's economy, the more it pays – and vice versa.
The EU budget doesn't aim to redistribute wealth, but rather focuses on the needs of Europeans as a whole.
2018 figures for Luxembourg
- Total EU spend in Luxembourg – € 2.008 billion
(equivalent to 4,86% of the Luxembourg economy)
- Total contribution to EU budget – € 0.357 billion
(equivalent to 0.86 % of the Luxembourg economy)
More figures on the EU budget, revenue and spending:
EU-funded projects in Luxembourg
The money paid into the EU budget by Luxembourg helps fund programmes and projects in all EU countries - like building roads, subsidising researchers and protecting the environment.
Find out more about how Luxembourg benefits from EU funding.