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Overview

Political system

The Grand Duchy of Luxembourg is a parliamentary constitutional monarchy (Grand Duchy). The prime minister is the head of government. The Grand Duke who is the head of state only has 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

Luxembourg has the highest GDP per capita in the European Union with €89 800, well above the EU average (€37 600). It accounts for 0.5% of the EU's total GDP.

(Source: Eurostat - figures for GDP per capita and GDP)

(Source: Eurostat - figures for exports and imports)

Luxembourg in the EU

Budgets and funding

How much does Luxembourg pay and receive from the EU?

The EU budget is the tool to ensure that Europe remains a democratic, peaceful, prosperous and competitive force. The EU uses it to finance its priorities and big projects that most individual EU countries could not finance on their own.

The benefits of EU membership significantly exceed the size of the EU budget contributions and the examples are many. All Member States benefit from being part of the Single Market, a shared approach to the common challenges of migration, terrorism and climate change, and concrete gains like better transport infrastructure, modernised and digitalised public services and cutting-edge medical treatment.

How much each EU country pays into the EU budget is calculated fairly. The larger your country's economy, the more it pays – and vice versa.

The EU budget is not about giving and taking – it’s about collectively contributing to making Europe and the world a better place for us all.

EU budget spending and revenue per country and per year

 

EU-funded projects in Luxembourg

Money from the EU budget helps fund programmes and projects in all EU countries – for example to build roads, subsidise researchers and protect the environment.

Find out more about how Luxembourg benefits from EU funding and recovery funds in your country or region.