History

Recent History

In recent times, Luxembourg has developed into an active member of the European governing bodies, building on its reputation as having been one of the European Union's architects. It's reputed to 'punch above its weight', and is in particular a staunch defender of the rights of small states within the Union. Jean-Claude Juncker, prime minister since 1995, continued to dominate politics after his party won another general election in June, 2004.

Modern Day History

The discovery of iron ore around 1850 ushered Luxembourg into the 20th century and pushed the country to the frontline of European economic influence. (Steel exports continue to make up roughly a quarter of the country's export trade.) In 1948, after Nazi occupation during WWII, Luxembourg gave up its position of neutrality to join in various economic, political and military organizations, including NATO and the United Nations. The formation of Benelux - an economic union between Belgium, the Netherlands and Luxembourg - was among the more prominent of these groupings. It also served as a model for today's European Union, of which Luxembourg was a founding member. When the steel industry slumped in the mid-1970s, the Grand Duchy reacted quickly by wooing big spenders from abroad with favourable banking and taxation laws. In so doing, it rapidly morphed from an industrial to a service-based economy, although the steel industry still plays a significant role within the principality's modern economy.

Pre 20th Century History

Luxembourg's history reads a bit like the storybook background its landscape suggests. Though the area's occupation actually extends back further than the Roman era, present-day Luxembourg stems from the loins of Count Sigefroid of Ardennes, who raised a castle here in 963 AD and sowed the seeds of a dynasty that's spawned rulers throughout Europe. By the end of the Middle Ages, Sigefroid's city had the Burgundians, Spanish, French, Austrians and Prussians all waging bloody battles to conquer and secure it. Besieged, destroyed and rebuilt more than 20 times in 400 years, it grew to become the strongest fortress in Europe after Gibraltar.

Listed as a French 'forestry department' during Napoleon's reign, Luxembourg was included in the newly formed United Kingdom of the Netherlands, along with Belgium, in 1814. It fragmented 16 years later, when Belgium broke off from the Netherlands, taking half of Luxembourg along for the ride. This division heated up the Grand Duchy's desire for independence, and in 1830 the Dutch portion became present-day Luxembourg. The 1867 Treaty of London reaffirmed this autonomy. Soon after, the country declared itself neutral in international affairs and - appropriately - torched its much-contested fort.