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Luxembourg presents itself ı Luxembourg throughout the centuries

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<strong>Luxembourg</strong> <strong>presents</strong> <strong>itself</strong> ı <strong>Luxembourg</strong> <strong>throughout</strong> <strong>the</strong> <strong>centuries</strong>


L U X E M B O U R G p r e s e n t s i t s e l f12 34161 // In 963, Count Siegfried erected a feudal castle and laid<strong>the</strong> foundation stone of <strong>the</strong> future city and new county2 // Formerly called ‘Gibraltar of <strong>the</strong> North’, <strong>the</strong> fortress of<strong>the</strong> city of <strong>Luxembourg</strong>, with its underground network ofcasemates, is a Unesco world heritage site3 // The fortifications of <strong>the</strong> city of <strong>Luxembourg</strong> in 1868,shortly before <strong>the</strong>y were dismantled. The Prussians were <strong>the</strong>last to carry out major expansion works.4 // Departure of <strong>the</strong> Prussian garrison from <strong>Luxembourg</strong>,after <strong>the</strong> Treaty of London in 1867The burden of historyModern <strong>Luxembourg</strong> owes its origin to major international treaties: <strong>the</strong> Congress ofVienna (1815) and <strong>the</strong> Treaty of London, also called <strong>the</strong> Treaty of <strong>the</strong> XXIV Articles(1831), renewed in 1839, and ano<strong>the</strong>r London Treaty in 1867. It is apparent that <strong>Luxembourg</strong>is a creation of <strong>the</strong> European powers, but one that was to survive in <strong>the</strong> long run,thanks to its astonishing vitality.The Congress of Vienna elevated <strong>the</strong> former Duchy of <strong>Luxembourg</strong>, which was annexedby revolutionary France in 1795 and given <strong>the</strong> name Department of <strong>the</strong> Forests, into aGrand Duchy and gave it <strong>the</strong> status of a sovereign state linked through a personal unionwith <strong>the</strong> new Kingdom of <strong>the</strong> Ne<strong>the</strong>rlands (previously Austrian Ne<strong>the</strong>rlands, principalityof Liège and <strong>the</strong> United Provinces) – William I of Orange-Nassau was King of <strong>the</strong>Ne<strong>the</strong>rlands and Grand Duke of <strong>Luxembourg</strong>. The new Grand Duchy of <strong>Luxembourg</strong>was handed over to <strong>the</strong> Orange-Nassau as a patrimony to compensate for <strong>the</strong> loss ofproperty in <strong>the</strong> Rhineland that was ceded to Prussia. At <strong>the</strong> same time, <strong>the</strong> Grand Duchybecame a member of <strong>the</strong> new German Confederation, a league of about 40 states intendedto form a bulwark against France. The city of <strong>Luxembourg</strong> became a federalfortress with a Prussian garrison.The international status of this Grand Duchy was thus quite complex and this complexityin <strong>itself</strong> meant that <strong>the</strong> new state was eluding <strong>the</strong> machinations of Europeandiplomacy. It was bilingual, since a linguistic boundary running from north to southdivided it into a French-speaking west and a German-speaking east. In fact, dialectswere spoken: Walloon in <strong>the</strong> west and Lëtzebuergesch in <strong>the</strong> east. The local administrationused French or German according to <strong>the</strong> provenance of <strong>the</strong> speakers, while <strong>the</strong>central administration (government, national assembly, justice) situated in <strong>the</strong> capital(in <strong>the</strong> German-speaking area) showed a preference for French. Questions of languagebecame very important during <strong>the</strong> movement of nationalities that characterised <strong>the</strong>19th and 20th <strong>centuries</strong>.Both <strong>the</strong> creation of <strong>the</strong> state and <strong>the</strong> establishing of its status were conferred upon<strong>the</strong> <strong>Luxembourg</strong> people, who remained passive. The state thus preceded <strong>the</strong> nation,which explains why <strong>the</strong> <strong>Luxembourg</strong> people failed to complain when <strong>the</strong>ir sovereign,King-Grand Duke William I, treated his Grand Duchy as a province of his Kingdom of<strong>the</strong> Ne<strong>the</strong>rlands. Serious consequences ensued. The sou<strong>the</strong>rn provinces, which wereBelgian and Catholic, were no longer prepared to tolerate being dominated by <strong>the</strong>nor<strong>the</strong>rn provinces, which were Dutch and Protestant. They rebelled in 1830. The<strong>Luxembourg</strong> people joined <strong>the</strong> Belgian revolution because <strong>the</strong>y saw no reason toremain loyal to <strong>the</strong>ir sovereign. The European powers ga<strong>the</strong>red in London and brought


L u x e m b o u r g t h r o u g h o u t t h e c e n t u r i e sThe current home of <strong>the</strong> Ministry of Foreign Affairswas built during <strong>the</strong> period of Austrian ruleFollowing double page // Surrounded by <strong>the</strong> city’sfortress remains, <strong>the</strong> former Neumünster abbeynow houses a cultural centre17everything to a rapid end by separating <strong>the</strong> Belgians and <strong>the</strong> Dutch (Treaty of <strong>the</strong>XXIV Articles, 1831). What should be done about <strong>Luxembourg</strong>? It was <strong>the</strong> first time, butnot <strong>the</strong> last, that <strong>the</strong>y were faced with a ‘<strong>Luxembourg</strong> question’. Belgium demanded itfor <strong>itself</strong>, emphasizing <strong>the</strong> will of those involved. William I, belatedly remembering that<strong>the</strong> Grand Duchy was a separate state, wanted to keep it. The London Conferencedecided to cut <strong>Luxembourg</strong> in two, giving <strong>the</strong> western, francophone part to Belgium,while <strong>the</strong> eastern part continued to form <strong>the</strong> Grand Duchy, or what was left of it:2,586 km 2 with 170,000 inhabitants. William’s objections prevented <strong>the</strong> implementationof this part of <strong>the</strong> treaty until 1839 (new Treaty of London).The big question in 1839 was whe<strong>the</strong>r such a small country was viable. The great powerswere sceptical, seeing <strong>the</strong> solution to <strong>the</strong> <strong>Luxembourg</strong> problem simply as an expedient.The <strong>Luxembourg</strong> people were not convinced, ei<strong>the</strong>r. They had difficulty imagining astate that was separated from <strong>the</strong> o<strong>the</strong>rs and dependent on <strong>itself</strong>. Past experience hadnot prepared <strong>the</strong>m for this.Ever since <strong>the</strong> end of <strong>the</strong> Middle Ages, <strong>the</strong> Duchy of <strong>Luxembourg</strong> had been incorporatedin <strong>the</strong> Dutch Confederation (first Spanish, <strong>the</strong>n Austrian), with two periods of annexationby France under Louis XIV (1684-1697) and during <strong>the</strong> period of <strong>the</strong> Revolutionand <strong>the</strong> Napoleonic Empire (1795-1814). From 1815 to 1830, it was incorporated into <strong>the</strong>Kingdom of <strong>the</strong> Ne<strong>the</strong>rlands, and from 1830 to 1839 into <strong>the</strong> Kingdom of Belgium. In1839, <strong>the</strong> <strong>Luxembourg</strong> people protested against <strong>the</strong> division of <strong>the</strong>ir country. Lookingnostalgically at <strong>the</strong> (former) Low Countries that <strong>the</strong>y were familiar with, <strong>the</strong>y wouldhave preferred to remain united with Belgium.Challenges to be facedIn fact, <strong>the</strong> European powers confronted <strong>the</strong> <strong>Luxembourg</strong> people with a fait accompliby imposing statehood on <strong>the</strong>m, an idea <strong>the</strong>y gradually came to terms with and developeda liking for. If <strong>the</strong>y had regretted separation from Belgium in 1839, twenty yearslater <strong>the</strong>y took up <strong>the</strong> refrain of a song, Feierwon, specially composed for <strong>the</strong> opening of<strong>Luxembourg</strong>’s railway station in 1859 – and turned it into <strong>the</strong>ir national motto: Mirwëlle bleiwen, wat mir sinn (‘We want to remain what we are’).Let us now examine <strong>the</strong> favourable and unfavourable factors affecting <strong>the</strong> developmentof a national consciousness and thus <strong>the</strong> survival of <strong>the</strong> state.>>


L U X E M B O U R G p r e s e n t s i t s e l fThe Congress of Vienna of 1815 elevated <strong>Luxembourg</strong> to <strong>the</strong> rankof Grand Duchy and conferred upon it <strong>the</strong> status of a sovereign nation,joined to <strong>the</strong> King of The Ne<strong>the</strong>rlands in a personal unionOn 7 August 1843, <strong>the</strong> border convention between <strong>Luxembourg</strong> and Belgiumwas signed in Maastricht. Since <strong>the</strong>n, 286 iron posts covering a distanceof 148 km have signalled <strong>the</strong> border between <strong>the</strong> two countries.20The international contextThe least favourable factor was <strong>the</strong> international context. The years 1840-1945 werelean times for small countries. It was <strong>the</strong> period of great national amalgamations (Italyand Germany) and imperial ambitions (Russia and Germany). Until <strong>the</strong> end of <strong>the</strong>Second World War, territorial expansion remained one of <strong>the</strong> major aims of <strong>the</strong> countriesthat were in a position of power. In <strong>the</strong> case of little <strong>Luxembourg</strong>, each of its threeneighbours – Germany, Belgium and France – adopted such a position.In addition, all three countries thought that history gave <strong>the</strong>m rights over <strong>Luxembourg</strong>.Germany invoked <strong>Luxembourg</strong>’s membership of <strong>the</strong> Empire in <strong>the</strong> Middle Ages and of<strong>the</strong> later German Confederation, as well as <strong>the</strong> shared language. Belgium emphasised<strong>the</strong> lengthy period during which <strong>the</strong> former Duchy of <strong>Luxembourg</strong> had belonged to<strong>the</strong> Low Countries, and <strong>the</strong> way in which <strong>the</strong> <strong>Luxembourg</strong> people had protested about<strong>the</strong> 1839 division. France based its claims on <strong>the</strong> two annexations of <strong>Luxembourg</strong> byLouis XIV and a revolutionary and imperial France, making <strong>Luxembourg</strong> <strong>the</strong> Departmentof <strong>the</strong> Forests. For all three, <strong>the</strong>re were strategic considerations (border security,control over <strong>Luxembourg</strong>’s railways), and economic calculations (iron ore).With every European crisis, <strong>the</strong>re was a resurgence of interest by its neighbours, provingthat <strong>Luxembourg</strong>’s international status, as laid down in <strong>the</strong> treaties, was hardlyconsidered definite. When <strong>the</strong> revolutions of 1848 shook Europe, Belgium pleaded for<strong>Luxembourg</strong> to be returned to its territory, while Germany, trying – without success – tounify <strong>itself</strong> at <strong>the</strong> Frankfurt parliament, saw <strong>the</strong> Grand Duchy as an integral part of aunited Germany.When <strong>the</strong> German Confederation disintegrated in 1866 as a consequence of <strong>the</strong> Austro-Prussian war, and Prussia sought to profit from its victory by expanding its territory,Napoleon III demanded <strong>Luxembourg</strong> in compensation. Otto von Bismarck opposedthis at <strong>the</strong> last moment (Treaty of London, 1867). During <strong>the</strong> First World War, all threeneighbours forged plans to annex <strong>Luxembourg</strong>. Germany was thwarted by its defeat,while Belgium’s plans met opposition from France. In <strong>the</strong> Second World War, NaziGermany tried to germanise <strong>Luxembourg</strong> by force.The Grand Duchy has had to strive for acceptance as a separate state by its neighbours.The League of Nations, <strong>the</strong> first attempt to create a world order on <strong>the</strong> basis of law,was unable to protect small countries (Ethiopia, Austria, Czechoslovakia). The UNO,established after <strong>the</strong> Second World War, has also proved inadequate. It has been <strong>the</strong>Franco-German reconciliation within <strong>the</strong> framework of a new Europe that has freed


L u x e m b o u r g t h r o u g h o u t t h e c e n t u r i e sPropaganda march organised by <strong>the</strong> Nazis during <strong>the</strong> occupation of <strong>the</strong> Grand Duchy (1940-1944)Many young forced recruits managed to escape <strong>the</strong> Wehrmacht by going into hiding,in particularly in <strong>the</strong> country’s sou<strong>the</strong>rn mines, <strong>the</strong>reby putting <strong>the</strong>ir lives at risk21<strong>Luxembourg</strong> from <strong>the</strong> nightmare of annexation. NATO (1949) and <strong>the</strong> European Community(1950), of which <strong>Luxembourg</strong> is a fully-fledged founding member, have given<strong>the</strong> Grand Duchy a guarantee of political survival. It is <strong>the</strong>refore no surprise that <strong>the</strong>country and its politicians (from Joseph Bech to Jean-Claude Juncker via Pierre Werner,Gaston Thorn, Jacques Santer, Colette Flesch and Jacques F. Poos) have been fullyinvolved in <strong>the</strong> European cause. In 1952, <strong>Luxembourg</strong>’s capital was chosen as <strong>the</strong> seatof <strong>the</strong> first European institution, <strong>the</strong> European Coal and Steel Community, and it hasremained one of <strong>the</strong> three European capitals alongside Strasbourg and Brussels.Despite being a small country, <strong>Luxembourg</strong> has been able to play an important role in<strong>the</strong> process of European unification and has managed to gain acceptance and respectin foreign relations. This active European role has reinforced <strong>the</strong> confidence of its populationin <strong>the</strong> future of <strong>the</strong>ir country.A fur<strong>the</strong>r factor permitting <strong>Luxembourg</strong> to play a major role in international affairsis its steadfast resistance to German occupation between 1940 and 1944 when itsnational identity was at stake. On <strong>the</strong> basis of a common language (Lëtzebuergesch as aGerman dialect) and shared ethnic origins (<strong>the</strong> <strong>Luxembourg</strong> people as a Germanicrace), <strong>the</strong> Gauleiter attempted to assimilate <strong>Luxembourg</strong>. Failure to do so by persuasionresulted in extreme brutality being used, which did not, however, succeed in crushing<strong>the</strong> determination of <strong>the</strong> people. From 1942 onwards, young <strong>Luxembourg</strong> nationalswere forcibly conscripted into <strong>the</strong> Wehrmacht.A heavy price was paid by <strong>the</strong> people of <strong>Luxembourg</strong>: 791 <strong>Luxembourg</strong> citizens wereexecuted, 4,000 were placed in concentration camps, and 4,200 were forcibly deportedto Eastern Europe. The most severe blow was <strong>the</strong> fact that 2,850 young <strong>Luxembourg</strong>men forced to join <strong>the</strong> Wehrmacht never saw <strong>the</strong>ir homeland again (28%).The most tangible demonstration of national solidarity was provided by <strong>the</strong> 3,500(34.3%) forced conscripts who managed to escape from military service, thus putting atrisk <strong>the</strong>ir own lives and those of <strong>the</strong>ir nearest and dearest. Most of <strong>the</strong>m were hiddeninside <strong>the</strong> country. All in all, <strong>Luxembourg</strong> lost 2% of its population (290,000 in 1939)as a consequence of <strong>the</strong> war (2.4% for <strong>the</strong> Ne<strong>the</strong>rlands; 1.5% for France; 1% for Belgium).It can be readily understood that <strong>the</strong> events of <strong>the</strong> war left a painful scar on <strong>the</strong> collectivememory. At <strong>the</strong> same time, <strong>Luxembourg</strong> demonstrated its viability as a nation.


L U X E M B O U R G p r e s e n t s i t s e l fAn equestrian statue erected in honour ofWilliam II, King of The Ne<strong>the</strong>rlands andGrand Duke of <strong>Luxembourg</strong>, towers above<strong>the</strong> square bearing <strong>the</strong> same name in <strong>the</strong>centre of <strong>Luxembourg</strong> City22In 1867, William III wanted tosell <strong>the</strong> Grand Duchy of <strong>Luxembourg</strong>to France. This caused diplomatictensions between France and Prussia.On her return from exile on 14 April 1945, HRH Grand Duchess Charlotte(1896-1985), accompanied by her husband Prince Félix, was cheered bya jubilant crowd in front of <strong>the</strong> grand-ducal palaceThe Nassau dynastyThe destiny of <strong>the</strong> Grand Duchy of <strong>Luxembourg</strong> was linked to that of <strong>the</strong> Nassaudynasty right from <strong>the</strong> start (Congress of Vienna, 1815). Serving as a patrimonial compensationfor that family, it was linked to <strong>the</strong> Kingdom of <strong>the</strong> Ne<strong>the</strong>rlands through apersonal union, with William I (1815-1840) as King and Grand Duke.This union proved both advantageous and disadvantageous for <strong>Luxembourg</strong>. It frustrated<strong>the</strong> claims of its neighbours, and sometimes acted as a protective shield, butwhenever <strong>the</strong>re was a conflict of interest between <strong>Luxembourg</strong> and <strong>the</strong> Ne<strong>the</strong>rlands,<strong>the</strong> sovereign tended to favour his kingdom. The political class in <strong>the</strong> Ne<strong>the</strong>rlands wereconcerned that <strong>Luxembourg</strong> could cause complications for <strong>the</strong>ir country and sought toend <strong>the</strong> personal union. In 1867, William III (1849-1890), struggling with financialproblems, would have liked to cede his Grand Duchy to Napoleon III if Bismarck hadnot been opposed to this.Nassau’s rule of succession meant that <strong>the</strong>ir patrimonial possessions – such as <strong>the</strong> GrandDuchy – should be inherited only by males. When William III died in 1890 leaving onlya daughter (Wilhelmine) to succeed to <strong>the</strong> Ne<strong>the</strong>rlands, <strong>the</strong> grand-ducal throne passedto ano<strong>the</strong>r branch of <strong>the</strong> family, Nassau-Weilburg, who had been dispossessed of <strong>the</strong>irDuchy of Nassau (Wiesbaden) in 1866 by Bismarck.From 1890, <strong>Luxembourg</strong> had its own dynasty, which naturally took some time tobecome accustomed to <strong>the</strong> new situation but which rapidly became a symbol of <strong>the</strong>country’s independence. In a Europe which was still largely composed of monarchies,it enabled <strong>the</strong> still mainly agricultural population to identify with <strong>the</strong> state through aleading figure. It was Grand Duchess Charlotte (1919-1964) who fulfilled <strong>the</strong> role toperfection when she succeeded her sister Marie-Adélaïde (1912-1919), who was obligedto abdicate for domestic political reasons. Charlotte initiated <strong>the</strong> era of representativemonarchy, in which sovereigns strictly avoided any involvement in everyday politics.And she managed to make <strong>the</strong> monarchy acceptable to <strong>the</strong> forces of <strong>the</strong> left.Faced with <strong>the</strong> German invasion in 1940, she chose <strong>the</strong> hardship of exile and successfullyused her influence with <strong>the</strong> Allies to preserve her country’s independence. Her sonJean (1964-2000) maintained <strong>the</strong> popularity of <strong>the</strong> dynasty right up to <strong>the</strong> momentwhen <strong>the</strong> torch passed to his son, Henri, who ascended <strong>the</strong> throne on 7 October 2000.A common languageAfter <strong>the</strong> division of 1839, <strong>Luxembourg</strong> became a monolingual, German-speaking country.A common language is a strong unifying factor during <strong>the</strong> formation of a national


L u x e m b o u r g t h r o u g h o u t t h e c e n t u r i e sTRH Grand Duke Jean and Grand Duchess Joséphine-Charlotte(1927-2005). On 7 October 2000, HRH Grand Duke Jean ceded<strong>the</strong> throne to his eldest son Henri.For <strong>the</strong> opening ceremony on 4 and 5 October 1859 of <strong>the</strong> first <strong>Luxembourg</strong> railway line linking<strong>Luxembourg</strong> to Thionville, national poet Michel Lentz created <strong>the</strong> Feierwon (chariot of fire),which went on to become <strong>the</strong> country’s national an<strong>the</strong>m for a few years23community. The <strong>Luxembourg</strong> people have enjoyed this since 1839. It crystallised <strong>the</strong>vague feeling of belonging to a country dating back to <strong>the</strong> Ancien Régime and encouraged<strong>the</strong>m to reflect upon <strong>the</strong> exact meaning of what one might call, for lack of a suitableword, <strong>the</strong>ir <strong>Luxembourg</strong>ishness.There is one problem about emphasizing <strong>the</strong> common language in <strong>Luxembourg</strong> –Lëtzebuergesch is merely a dialect of German. Instead of reinforcing <strong>Luxembourg</strong>’scohesion, sharing a language with Germany could have led to absorption into thatcountry, precisely because it was searching for national unity.If <strong>the</strong>y were to survive as a separate state, <strong>the</strong> <strong>Luxembourg</strong> people had to mark <strong>the</strong>mselvesoff from Germany. This distance was all <strong>the</strong> more necessary because <strong>the</strong>re wereo<strong>the</strong>r ties with Germany: political links through membership of <strong>the</strong> German Confederation(1815-1866), and economic ties after <strong>the</strong> Grand Duchy entered <strong>the</strong> Zollverein(1842-1918).It was in <strong>the</strong> cultural sphere that <strong>the</strong> <strong>Luxembourg</strong> people differentiated <strong>the</strong>mselves.After <strong>the</strong> division of 1839, leading members of society, who were accustomed to usingFrench, decided to continue doing so. This meant that in a German-speaking country, abilingual regime was maintained which never<strong>the</strong>less differed from <strong>the</strong> Ancien Régimein that instead of juxtaposition (<strong>the</strong> Swiss model), <strong>the</strong>re was superposition: an individualspoke – with greater or lesser fluency – two languages.Which languages are <strong>the</strong>y? – German and French, not Lëtzebuergesch. And what is <strong>the</strong>irstatus? The <strong>Luxembourg</strong> people regard French as an acquired language, a foreign language.But is German <strong>the</strong>ir mo<strong>the</strong>r tongue? For a long time, <strong>the</strong> <strong>Luxembourg</strong> peoplewere convinced that it was. The teaching manuals told <strong>the</strong>m in German that Germanwas <strong>the</strong>ir mo<strong>the</strong>r tongue. But what did <strong>the</strong>y speak among <strong>the</strong>mselves? It was nei<strong>the</strong>rGerman, nor French, but Lëtzebuergesch, which <strong>the</strong>y long referred to as LëtzebuergerDäitsch, <strong>Luxembourg</strong> German.<strong>Luxembourg</strong> nationals thus considered <strong>the</strong>mselves bilingual. At <strong>the</strong> beginning of <strong>the</strong>20th century, things began to change, however. A number of teachers and publishers(Batty Weber, Nicolas Ries, Mathias Esch) started to speak of trilingualism. Not lackingwithout a certain intellectual courage, <strong>the</strong>y declared Lëtzebuergesch to be <strong>the</strong> real mo<strong>the</strong>rtongue of <strong>the</strong> <strong>Luxembourg</strong> people, thus turning German into a foreign language.Mental processes of this type inevitably take time. The greatest triumph was when <strong>the</strong><strong>Luxembourg</strong> people resisted <strong>the</strong> attempts at Germanification during <strong>the</strong> occupation(1940-1944), and <strong>the</strong> high point was reached in 1984, when Lëtzebuergesch was


L U X E M B O U R G p r e s e n t s i t s e l fFrom <strong>the</strong> late 19th century onwards, iron ore mining, which was at <strong>the</strong>origin of <strong>the</strong> country’s wealth, drew workers from very varied backgroundsThe industrialisation of <strong>Luxembourg</strong>’s South attracted thousands of Italian workers,who often lived toge<strong>the</strong>r in <strong>the</strong> same area of town. This was <strong>the</strong> case in Dudelange,for instance, where a part of town close to <strong>the</strong> factory was even dubbed ‘little Italy’.24declared <strong>the</strong> national language, without affecting <strong>the</strong> use of French and German.French remains <strong>the</strong> language of administration, justice and academic culture, butceased to be <strong>the</strong> language of politics in favour of Lëtzebuergesch. Being closer to Lëtzebuergesch,German remains <strong>the</strong> language of written communication, especially by <strong>the</strong>press and <strong>the</strong> church.These details about complex language use are important because this has been, and stillis, a vital key to understanding <strong>Luxembourg</strong>.Material well-beingMaterial well-being is ano<strong>the</strong>r important means of streng<strong>the</strong>ning group cohesion. Fromthis point of view, 1839 was anything but favourable. <strong>Luxembourg</strong> was a poor agriculturalcountry; <strong>the</strong> few industries that did exist (iron mills, tanneries) still used out-of-date methods.Thus, <strong>Luxembourg</strong> nationals emigrated in large numbers to <strong>the</strong> United States. Reducedto such a small area, <strong>the</strong> country seemed to lack promising prospects for <strong>the</strong> future.However, <strong>the</strong> future was to disprove such hasty, pessimistic predictions. Membership of<strong>the</strong> Zollverein (1842) gave <strong>Luxembourg</strong> access to a huge economic area. The year 1842marks a turning point in <strong>Luxembourg</strong>’s history, when <strong>the</strong> focus shifted from <strong>the</strong> Ne<strong>the</strong>rlandsto Germany, whose economic growth it was henceforth to be closely associatedwith. Although still poor, <strong>the</strong> <strong>Luxembourg</strong> people were free to pursue <strong>the</strong>ir own aims.They proceeded cautiously and achieved a limited degree of prosperity.The discovery of iron ore in <strong>the</strong> south of <strong>the</strong> country – <strong>the</strong> area is an extension of <strong>the</strong>Lorraine iron-ore region – was to trigger a rapid industrialisation from <strong>the</strong> 1870s onwards.By <strong>the</strong> beginning of <strong>the</strong> 20th century, <strong>Luxembourg</strong> was a large-scale producerof iron: 2,500,000 tonnes of pig iron and 1,400,000 tonnes of steel in 1913. This industrialisationkept pace with that in Germany. Human resources being insufficient, it wasnecessary to rely on immigration in three large waves: from Germany from 1875 until1930-1935, from Italy in <strong>the</strong> 1890s until <strong>the</strong> 1960s, and from Portugal since 1960. Frombeing a country of emigration, <strong>Luxembourg</strong> became a magnet for immigrants. Since<strong>the</strong> beginning of <strong>the</strong> 20th century, <strong>the</strong> standard of living in <strong>Luxembourg</strong> has beenhigher than in neighbouring regions.Throughout <strong>the</strong> century, <strong>the</strong> country’s economy followed <strong>the</strong> fortunes of steel. Despite<strong>the</strong> cyclical crises, <strong>the</strong>re has been an upward tendency. Since <strong>the</strong> 1930s, almost all <strong>the</strong>iron produced has been turned into steel. From 2,540,000 tonnes of steel in 1950,production rose to 6,450,000 tonnes in 1974 (for a population of 357,000). Conscious


L u x e m b o u r g t h r o u g h o u t t h e c e n t u r i e sOnce a powerful pillar of <strong>the</strong> <strong>Luxembourg</strong> economy, <strong>the</strong> steel industry was hit several times by economiccrises and global overproduction. The decline of <strong>the</strong> steel industry has since been offset by <strong>the</strong> developmentof <strong>the</strong> financial sector.25of <strong>the</strong> danger of relying on a monolithic economy, <strong>the</strong> <strong>Luxembourg</strong> authorities launcheda diversification programme in <strong>the</strong> 1960s, attracting o<strong>the</strong>r types of industry (chemicals,rubber, metal-processing, etc.). The serious crisis in <strong>the</strong> steel industry from 1974-1975demonstrated <strong>the</strong> dexterity of this policy.The boom in financial services starting in <strong>the</strong> 1960s compensated for <strong>the</strong> problems insteelmaking. It was <strong>the</strong> law on holding companies of 1929 that provided <strong>the</strong> basis forthis expansion, which was given fur<strong>the</strong>r impetus by <strong>the</strong> monetary policy of variousmajor countries (United States, Germany) and by measures taken by <strong>the</strong> <strong>Luxembourg</strong>authorities. The number of financial institutions rose from 17 in 1966 to 220 in 1999.In 1987, employment in <strong>the</strong> banking sector overtook that in steel. Unemployment hascontinually been maintained at a relatively low level (2 to 4%).Social cohesionThe transition from poverty to affluence tends to cause difficulties, because it affectssocial cohesion. The industrial revolution made <strong>the</strong> country wealthy, but distributingthat wealth posed problems. Poor farmers became poor workers, with at <strong>the</strong>ir side Italianimmigrants who were even worse off. The villages in <strong>the</strong> iron ore region (Dudelange,Esch-sur-Alzette, Differdange) were transformed into industrial towns, <strong>the</strong> urbanisationof which was for a long time chaotic. Perhaps <strong>the</strong> most surprising feature was <strong>the</strong>docility of this multilingual and badly-organised proletariat. At <strong>the</strong> outbreak of <strong>the</strong> FirstWorld War, almost 60% of <strong>the</strong> workforce in <strong>the</strong> steel industry was of foreign origin.The dramatic deterioration in <strong>the</strong>ir living conditions unleashed by <strong>the</strong> German occupation(1914-1918) pushed <strong>the</strong> workers into forming trade unions (1916). Two majorstrikes (1917 and 1921) failed because of foreign military intervention, first by Germany,<strong>the</strong>n by France. Gradually, <strong>the</strong> workers’ organisations became reformist, but tensionsremained and threatened social cohesion.The serious global economic crisis in October 1929, which could have unleashed a hugesocial explosion, paradoxically produced a situation which finally led to a sort of historiccompromise. In January 1936, a large workers’ demonstration, which took place inan orderly and peaceful manner, forced recognition of <strong>the</strong> trade unions – one close to<strong>the</strong> socialist party, now <strong>the</strong> OGBL (Onofhängege Gewerkschaftsbond Lëtzebuerg,founded in 1916), <strong>the</strong> o<strong>the</strong>r close to <strong>the</strong> Christian social party, today’s LCGB (LëtzebuergerChrëschtleche Gewerkschafts-Bond, founded in 1922) – and <strong>the</strong> establishmentof a National Council of Labour, an arbitration board composed equally of employersand employees. This marked <strong>the</strong> beginning of <strong>the</strong> period of collective agreements.>>


L U X E M B O U R G p r e s e n t s i t s e l fPrevious double page and above // Agriculture, viticulture and forestryare in constant decline. More conscious <strong>the</strong>se days of our environment,agriculture contributes to <strong>the</strong> protection of <strong>the</strong> natural environment.To save <strong>the</strong>ir steel industry, <strong>the</strong> <strong>Luxembourg</strong> people accepted<strong>the</strong> sacrifices dictated by <strong>the</strong> ‘<strong>Luxembourg</strong> model’28In retrospect, <strong>the</strong> year 1936 seems to have been a watershed in social relations. The firsthalf of <strong>the</strong> century, marked by confrontation, was followed by a second half characterisedby <strong>the</strong> search for consensus. In fact, <strong>the</strong>re were no serious social conflicts; <strong>the</strong>dissatisfaction of various social and political groups was expressed only through brieftoken strikes, demonstrations, and protest meetings. The negotiating table was <strong>the</strong>preferred place for settling differences.As far as institutions are concerned, <strong>the</strong> public authorities encouraged consultation bysetting up professional bodies (1924) and <strong>the</strong> tripartite (1977). The former consist of sixinstitutions elected by all <strong>the</strong> respective members (foreigners have had <strong>the</strong> vote since1993) which bring toge<strong>the</strong>r <strong>the</strong> various professions and have an obligatory consultativerole. This gives all <strong>the</strong> professional groups an accepted procedure for representingmembers’ views. The National Council of Labour (1936) is a conciliation body that canbe called upon prior to any industrial action taking place. 1966 saw <strong>the</strong> creation of <strong>the</strong>Economic and Social Council, also with an advisory function, which brings toge<strong>the</strong>remployers, employees and <strong>the</strong> government. While <strong>the</strong> National Council of Labour is abilateral organisation, <strong>the</strong> Economic and Social Council is trilateral.After <strong>the</strong> serious steel crisis broke out in 1974-1975, a major step was taken in 1977 with<strong>the</strong> formation of <strong>the</strong> tripartite, which brings toge<strong>the</strong>r three partners: employers, tradeunions and <strong>the</strong> government. In contrast to <strong>the</strong> Economic and Social Council, <strong>the</strong> tripartitewields important decision-making powers. At a time when <strong>the</strong> very existence ofsteelmaking appeared threatened, <strong>the</strong> tripartite seemed to be a more effective instrumentthan <strong>the</strong> Economic and Social Council or even parliament. Whe<strong>the</strong>r in a narrowgrouping to deal with steelmaking, or in a more general format, <strong>the</strong> tripartite developedinto <strong>the</strong> main means of finding a consensus about how to solve major economic andsocial problems at <strong>the</strong> turn of <strong>the</strong> century. For example, it was a tripartite agreementthat enabled steel maker ARBED to reduce its workforce from 25,000 (in 1974) to 5,000(in 1999) without any major layoffs.Proceeding via consensusProceeding via consensus has sometimes been called <strong>the</strong> ‘<strong>Luxembourg</strong> model’. Thisapproach has worked because <strong>the</strong> country was wealthy, but also because <strong>the</strong> <strong>Luxembourg</strong>have accepted – limited, but real – sacrifices to rescue steelmaking and preventsocial unrest. The French expert Jean Gandois, who was brought in by <strong>the</strong> governmentat <strong>the</strong> height of <strong>the</strong> steel crisis (1982-1983), found that ‘social consensus in <strong>the</strong> GrandDuchy is unique in Europe’.


L u x e m b o u r g t h r o u g h o u t t h e c e n t u r i e sIndustrial action and demonstrations are a rare occurrence in <strong>Luxembourg</strong>, with attemptsgenerally made to resolve economic and social issues through social dialogue29The evolution of a society based on consensus was fuelled by two powerful politicaland social forces – on <strong>the</strong> one hand by <strong>the</strong> Christian social party and <strong>the</strong> LCGB, and on<strong>the</strong> o<strong>the</strong>r by <strong>the</strong> socialist party and its associated trade union, <strong>the</strong> OGBL. The Christiansocial party, <strong>the</strong> largest <strong>throughout</strong> <strong>the</strong> century thanks to its social orientation, and <strong>the</strong>socialist party, reformist and streng<strong>the</strong>ned by <strong>the</strong> support of <strong>the</strong> major trade union in<strong>the</strong> country, have succeeded in finding common ground in terms of social dialogue.In 1974, a law introduced workers’ representation in large limited companies, thusgiving trade unionists seats on <strong>the</strong> administrative boards. Trade union attitudes in<strong>Luxembourg</strong> are thus more like those in Germany than in France or Belgium, wheresuch a policy has sometimes been characterised as ‘class collaboration’.Throughout <strong>the</strong> 20th century, <strong>the</strong> rural exodus was emptying <strong>the</strong> countryside. For aquarter of a century, <strong>the</strong> number of industrial workers has been declining, while jobsin <strong>the</strong> service sector have increased rapidly, especially since <strong>the</strong> end of <strong>the</strong> 1960s,when <strong>the</strong>y overtook figures in <strong>the</strong> manufacturing industry. <strong>Luxembourg</strong> has become<strong>the</strong> middle-class country par excellence.Social consensus is paralleled by political consensus, but this was achieved only after<strong>the</strong> first quarter of <strong>the</strong> 20th century in which left and right disagreed fundamentallyabout topics such as <strong>the</strong> relationship between church and state or <strong>the</strong> control of primaryeducation. With <strong>the</strong> decline of religious practice, accelerating from <strong>the</strong> 1960s, and<strong>the</strong> reduced influence of <strong>the</strong> clergy, as well as <strong>the</strong> aggiornamento of <strong>the</strong> church, suchdisagreements now have little effect on public opinion or on political decision makersand trade unions.The electoral system clearly influences political life. The majority system, in force until1919, tended to encourage confrontation, unlike <strong>the</strong> proportional system used since<strong>the</strong>n. Contrary to what one might think, this has not led to a splintering of politics.Three traditional parties, all founded early in <strong>the</strong> 20th century, share <strong>the</strong> power: <strong>the</strong>Christian social party, <strong>the</strong> socialist party, and <strong>the</strong> liberal party. The (Stalinist) communistparty has remained on <strong>the</strong> sidelines but attracted a protest vote between <strong>the</strong> end of<strong>the</strong> Second World War and <strong>the</strong> 1980s, before being superseded by two new parties, <strong>the</strong>Greens, and <strong>the</strong> populist ADR (which demands justice for pensioners).Ever since 1925, all governments have been coalitions of two of <strong>the</strong> three traditionalparties, <strong>the</strong> third being forced into opposition. The Christian social party has beenpivotal in forming governments. Between 1919 and <strong>the</strong> present day, it has dominatedevery government except during <strong>the</strong> years 1925-1926 and 1974-1979. The system ofcoalitions constantly obliges <strong>the</strong> political parties to enter into compromises. Because


L U X E M B O U R G p r e s e n t s i t s e l fWhe<strong>the</strong>r in <strong>the</strong> audiovisual sector or <strong>the</strong> construction industry, foreigners play an important role in <strong>the</strong> national economy30<strong>Luxembourg</strong>’s political tradition rejects sudden changes of direction, <strong>the</strong> country isgoverned from <strong>the</strong> centre.The determined quest for consensus hardly favours great intellectual or ideological debate.Seen from this perspective, <strong>the</strong> intellectually turbulent first half of <strong>the</strong> 20th centurydiffers markedly from <strong>the</strong> second, with its tame consensus. The turn of <strong>the</strong> centuryevoked comments about <strong>the</strong> risk of ‘consensus becoming all too important’.A final wordThis small country, established on a fragile basis in 1839, underwent a remarkabledevelopment in <strong>the</strong> 20th century, made possible only through profound changes. Thefirst phase (1890-1920) saw an agricultural country transformed into an industrial one;<strong>the</strong> second phase (1960-1990) turned <strong>Luxembourg</strong> into a service-sector economy. Thesechanges occurred gradually. Despite industrialisation, a vigorous agricultural sectorsurvived over a long period: 15,142 holdings of more than 2 hectares in 1907, still 11,445in 1950, but only 2,518 by 1998. Similarly, <strong>the</strong> predominance of services has not eradicated<strong>the</strong> industrial character of <strong>the</strong> country: industry involved almost 45% of <strong>the</strong> activepopulation in 1966, and 25% by <strong>the</strong> end of <strong>the</strong> 20th century. The steel crisis (1975-1985)was <strong>the</strong> only significant break, but <strong>the</strong> shock was absorbed by <strong>the</strong> increase in servicesand new companies attracted to <strong>the</strong> country through a diversification programme,as well as by <strong>the</strong> social and political consensus achieved by decision makers in <strong>the</strong>tripartite.The above-mentioned phases share one factor – considerable immigration. The economicboom and <strong>the</strong> low birth rate among <strong>the</strong> <strong>Luxembourg</strong> people necessitated anincreasing reliance on foreigners, rising and falling during <strong>the</strong> first half of <strong>the</strong> century:15.8% in 1910; 12.8% in 1922; 18.6% in 1930; 12.9% in 1935; 10% in 1947. From <strong>the</strong> 1950s,<strong>the</strong> proportion of foreigners has risen steadily, slowing down occasionally, but neverdeclining: 18.4% in 1970; 26.3% in 1981; 29.4% in 1991; and 39.6% in 2006. Between2000 and 2006, immigration exceeded emigration by an average of 2,655 per year (witha peak of 3,644 in 2000). If this trend is to continue, <strong>Luxembourg</strong> will have a populationof half a million in 12 years’ time.Over <strong>the</strong> course of <strong>the</strong> 20th century, <strong>the</strong> total population increased by 85.6%, from234,700 to 435,700. There was a large difference between <strong>the</strong> two halves of <strong>the</strong> century,with a growth of 25% in <strong>the</strong> first half, and 48.3% in <strong>the</strong> second. The latter figure certainlyre<strong>presents</strong> <strong>the</strong> largest demographic growth in <strong>Luxembourg</strong>’s history. It was dueto immigration.


L u x e m b o u r g t h r o u g h o u t t h e c e n t u r i e sIn <strong>Luxembourg</strong>, 41% of jobs areheld by cross-border commutersThe majority of foreigners living and working in <strong>Luxembourg</strong>hail from <strong>the</strong> countries that make up <strong>the</strong> European Union31Foreigners coming to work in <strong>Luxembourg</strong> are both younger and more dynamic incomparison to <strong>the</strong> <strong>Luxembourg</strong> population. How significant a role <strong>the</strong>se foreign workersplay in <strong>the</strong> economy, but also in society, is clearly illustrated by <strong>the</strong> following statistics.In 2006, <strong>the</strong> birth rate in <strong>Luxembourg</strong> has fallen by 0.13% compared with <strong>the</strong> precedingyear. The birth rate among <strong>Luxembourg</strong> citizens increased by 0.23%, while thatamong foreigners decreased by 0.20%.Foreigners make up 41.6% of <strong>the</strong> population. If we wish to appreciate <strong>the</strong> economiccontribution made by foreigners, we must take into account <strong>the</strong> many cross-bordercommuters – 130,000 by <strong>the</strong> end of 2006. These are French, Belgian and German citizens(in decreasing order) who cross <strong>the</strong> border every working day. On <strong>the</strong>ir own, <strong>the</strong>yrepresent 41% of total employment; if we add <strong>the</strong>m to <strong>the</strong> number of foreigners livingand working in <strong>Luxembourg</strong>, toge<strong>the</strong>r <strong>the</strong>y make up 68% of those in employment. 84%of manual workers are foreigners. Of <strong>the</strong> 160,000 jobs created between 1980 and 2006,70% were filled by cross-border commuters.The vast majority of foreigners living in <strong>Luxembourg</strong> are from European Union countries.The lion’s share, about four fifths, is taken by Portugal, France, Italy, Belgium andGermany (in descending order).To what extent are <strong>the</strong>se foreigners integrated in <strong>Luxembourg</strong> society? We are obligedto recognise <strong>the</strong> existence of at least four communities. First, <strong>Luxembourg</strong> nationalsmake up 60.4% of <strong>the</strong> inhabitants of <strong>the</strong> Grand Duchy. The Italian and Portugueseimmigrants are employed in construction, industry (in <strong>the</strong> narrow sense), manual occupations,and hotels and catering. Then <strong>the</strong>re are what <strong>the</strong> <strong>Luxembourg</strong> people calld’Europäer (‘<strong>the</strong> Europeans’), who numbered about 10,000 employees plus <strong>the</strong>ir familiesat <strong>the</strong> turn of <strong>the</strong> last century. These people are mostly officials and o<strong>the</strong>r employees of<strong>the</strong> European Union or international organisations such as NAMSA and Eurocontrol.For convenience, or because of <strong>the</strong>ir similar social status, this group is normally puttoge<strong>the</strong>r with <strong>the</strong> foreigners working in <strong>the</strong> financial sector (banking and insurance).Finally, <strong>the</strong>re are <strong>the</strong> cross-border commuters, who are significant because of <strong>the</strong>irnumbers. One is somewhat hesitant to classify as a community men and women whowork in <strong>Luxembourg</strong> but live abroad, as do <strong>the</strong>ir families, especially <strong>the</strong>ir children.Their links with <strong>the</strong> Grand Duchy are ra<strong>the</strong>r tenuous, but <strong>the</strong>y do have common intereststo defend.This classification into communities is clearly a simplification, but it does correspondto reality to some extent. The <strong>Luxembourg</strong> community finds cohesion through a sharedmo<strong>the</strong>r tongue, while <strong>the</strong> o<strong>the</strong>r communities tend to be formed more on <strong>the</strong> basis of


L U X E M B O U R G p r e s e n t s i t s e l fThroughout <strong>the</strong> entire country, <strong>the</strong> wide rangeof gastronomic establishments reflects <strong>the</strong>cosmopolitan make-up of <strong>the</strong> populationRight // Alcide De Gasperi building in<strong>Luxembourg</strong> City, called Héichhaus32<strong>the</strong>ir members’ professional or social status. The result is that <strong>the</strong> four communities livemore or less side by side, but without showing any animosity towards one ano<strong>the</strong>r.The small number of non-EU and non-European immigrants provides no fertile groundfor racism, and even xenophobia is scarcely noticeable. It is true that <strong>the</strong> <strong>Luxembourg</strong>people sometimes have an uncomfortable feeling that <strong>the</strong>y are no longer at home in<strong>the</strong>ir own country. The main reason is that relatively few of <strong>the</strong> foreigners living orworking in <strong>Luxembourg</strong> learn Lëtzebuergesch.The explanation for this is to be found in external factors ra<strong>the</strong>r than in an assumedlack of will on <strong>the</strong> part of <strong>the</strong> foreigners: all <strong>Luxembourg</strong> nationals acquire a certainmastery of French at school. As most of <strong>the</strong> foreigners come from Romance countries(Portugal, Italy, France, Belgium – people from Flanders do not hesitate to use Frenchin <strong>Luxembourg</strong>), French has become <strong>the</strong> lingua franca – among <strong>the</strong>mselves and with<strong>Luxembourg</strong> nationals. In today’s Grand Duchy, basically a German-speaking country,it is easy to get by without German, but not without French. This was not <strong>the</strong> case at <strong>the</strong>beginning of <strong>the</strong> 20th century.reasons are to be found in its geographical position along <strong>the</strong> boundary between <strong>the</strong>Romance and Germanic areas, and in <strong>the</strong> numerous foreigners who have been arrivingin <strong>the</strong> country for more than a century, many of whom have been absorbed into <strong>the</strong>genetic mass of <strong>the</strong> <strong>Luxembourg</strong> people. According to research by sociologist FernandFehlen, 45% of <strong>Luxembourg</strong> people today have at least one direct ancestor (parent orgrandparent) who was born abroad.Let us return to our point of departure, <strong>the</strong> division of <strong>the</strong> country in 1839. No onecould have foreseen such a remarkable development. From being an underdevelopedcountry, <strong>the</strong> Grand Duchy has become a developed, perhaps even an over-developedone. Coming to terms with this situation is <strong>the</strong> major challenge facing <strong>Luxembourg</strong> in<strong>the</strong> 21st century.Text: Gilbert TrauschToday’s <strong>Luxembourg</strong> is open not only to its three neighbours, but also to Europe ingeneral. Without doubt, it is <strong>the</strong> most cosmopolitan country in Western Europe. The


Key dates of <strong>Luxembourg</strong> history963 Siegfried, Count of <strong>the</strong> Ardennes, acquires <strong>the</strong> small fort Lucilinburhuc andturns it into a county seat1354 Charles IV, emperor of <strong>the</strong> Holy Roman Empire, elevates his half-bro<strong>the</strong>rWenceslaus to <strong>the</strong> rank of Duke of <strong>Luxembourg</strong>1443 Dissolution of <strong>the</strong> House of <strong>Luxembourg</strong>. The Duchy of <strong>Luxembourg</strong> falls into<strong>the</strong> hands of Philip of Burgundy, also called Philip <strong>the</strong> Good. This marks <strong>the</strong>beginning of four <strong>centuries</strong> of foreign domination.1506 <strong>Luxembourg</strong> goes over to <strong>the</strong> Habsburg dynasty of Spain when Charles <strong>the</strong> Fifthinherits Burgundian possessions from his fa<strong>the</strong>r and Spanish possessions fromhis mo<strong>the</strong>r1659 Following <strong>the</strong> Treaty of <strong>the</strong> Pyrenees, Spain yields <strong>the</strong> sou<strong>the</strong>rn part of<strong>Luxembourg</strong> (Thionville and dependencies) to Louis XIV1684 After several months of siege imposed by Louis XIV, <strong>the</strong> French troops, whichwere led by <strong>the</strong> general of Vauban, force <strong>the</strong> fortress of <strong>Luxembourg</strong> to surrender1697 Treaty of Ryswick between France and Spain. Louis XIV restores <strong>the</strong> Duchyof <strong>Luxembourg</strong> to Spain (with <strong>the</strong> exception of <strong>the</strong> territories acquired by <strong>the</strong>Treaty of <strong>the</strong> Pyrenees).1713-1714 After <strong>the</strong> Spanish Civil War, <strong>the</strong> treaties of Utrecht and Rastadt share <strong>the</strong>Spanish heritage. Charles VI of Habsburg receives <strong>Luxembourg</strong>, which thusbecomes Austrian property.1795 After <strong>the</strong> French Revolution, <strong>the</strong> French troops besiege <strong>the</strong> fortress of<strong>Luxembourg</strong> which capitulates after six months1815 The Congress of Vienna: after <strong>the</strong> defeat of Napoleon, <strong>the</strong> territories acquiredunder his authority are restored. <strong>Luxembourg</strong> is elevated to <strong>the</strong> rank of aGrand Duchy and becomes a sovereign state. William <strong>the</strong> First of Orange Nassau,sovereign of <strong>the</strong> new Kingdom of <strong>the</strong> Ne<strong>the</strong>rlands, becomes Grand Duke of<strong>Luxembourg</strong>.1839 The treaty of London: after <strong>the</strong> Belgian revolution in 1830, <strong>the</strong> large powersconfirm <strong>the</strong> status of independence of <strong>the</strong> Grand Duchy. Never<strong>the</strong>less, <strong>Luxembourg</strong>is divided into two parts, <strong>the</strong> western part going to Belgium and <strong>the</strong> eastern partcontinuing to form <strong>the</strong> sovereign Grand Duchy. The country takes on its definitegeographical form.1842 <strong>Luxembourg</strong> enters <strong>the</strong> Zollverein with Prussia1866 Dissolution of <strong>the</strong> German Confederation, which <strong>Luxembourg</strong> has belonged tosince 18151867 Napoleon III proposes to King-Grand Duke William III to buy <strong>Luxembourg</strong>back. Bismarck opposes this idea. The ‘question of <strong>Luxembourg</strong>’ is solved by <strong>the</strong>signature of <strong>the</strong> Treaty of London which grants <strong>Luxembourg</strong> <strong>the</strong> status of a‘perpetually neutral and disarmed’ state.1890 After <strong>the</strong> death of King-Grand Duke William III, who died without a male heir,<strong>the</strong> grand-ducal crown goes to Adolphe, <strong>the</strong> Duke of Nassau. This marks <strong>the</strong>beginning of <strong>the</strong> present grand-ducal family.1914-1918 2 August 1914 is <strong>the</strong> date of <strong>the</strong> invasion of <strong>the</strong> German troops. The First WorldWar emphasises <strong>the</strong> fragility of independence.1918 End of <strong>the</strong> First World War. <strong>Luxembourg</strong> denounces <strong>the</strong> Zollverein.1921 The Grand Duchy signs <strong>the</strong> Belgian-<strong>Luxembourg</strong> economic union (UEBL)with Belgium1940-1944 On 10 May 1940, <strong>Luxembourg</strong> is again invaded by German forces. The GrandDuchess and <strong>the</strong> government go into exile.1947 Signature of a draft agreement of a customs union between Belgium,<strong>Luxembourg</strong> and <strong>the</strong> Ne<strong>the</strong>rlands (Benelux)1949 Creation of <strong>the</strong> NATO. <strong>Luxembourg</strong> is one of its founding members.1951 <strong>Luxembourg</strong> is one of <strong>the</strong> founding members of <strong>the</strong> European Coal and SteelCommunity (ECSC), which constitutes <strong>the</strong> beginning of <strong>the</strong> construction of<strong>the</strong> European Union1952 <strong>Luxembourg</strong> City is chosen as <strong>the</strong> provisional headquarters of <strong>the</strong> ECSC1957 Ratification of <strong>the</strong> Treaty of Rome which creates <strong>the</strong> European EconomicCommunity (EEC) as well as <strong>the</strong> European Community of Atomic Energy(EURATOM). The treaty is signed between <strong>the</strong> Benelux countries, Italy,Germany and France.1995 <strong>Luxembourg</strong> is designated European City of Culture1999 The euro becomes <strong>the</strong> official currency in eleven countries of <strong>the</strong> EuropeanUnion (including <strong>Luxembourg</strong>)2000 On 7 October, Henri accedes to <strong>the</strong> throne, succeeding his fa<strong>the</strong>r Grand DukeJean (reign from 1964 to 2000)2005 <strong>Luxembourg</strong> assumes <strong>the</strong> Presidency of <strong>the</strong> Council of <strong>the</strong> European Unionfor six months2006 Merger between Arcelor and Mittal Steel Company, creating <strong>the</strong> world’s largeststeel producer, called Arcelor Mittal2007 <strong>Luxembourg</strong> and <strong>the</strong> Greater Region are <strong>the</strong> European Capital of CultureLeft // Map dated 1705 showing <strong>the</strong> bordersof <strong>the</strong> Duchy of <strong>Luxembourg</strong>

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