Political system

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.

Location on the EU map

Trade and economy

The most important sectors of Luxembourg’s economy in 2016 were the financial and insurance activities (27.2 %), wholesale and retail trade, transport, accommodation and food services (17.1 %) and public administration, defence, education, human health and social work activities (15.3 %).

Intra-EU trade accounts for 83% of Luxembourg’s exports (Germany 23%, Belgium 17% and France 15%), while outside the EU 3% go to both Switzerland and the United States.

In terms of imports, 77% come from EU Member States (Belgium 29%, Germany 24% and France 10%), while outside the EU 7% come from the United States and 6% to China.

Luxembourg in the EU

European Parliament

There are 6 members of the European Parliament from Luxembourg. Find out who these MEPs are.

European Parliament office in Luxembourg

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

Presidency of the Council of the EU

The following link is a redirection to an external websiteCurrent presidency of the Council of the EU

European Commission

The President of the European Commission is Jean-Claude Juncker, from Luxembourg.

The Commission is represented in each EU country by a local office, called a "representation".

Commission representation in Luxembourg

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 contribute and receive?

Member countries' financial contributions to the EU budget are shared 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 to focus on the needs of all Europeans as a whole.

Breakdown of Luxembourg’s finances with the EU in 2016:

• Total EU spending in Luxembourg: € 1.788 billion
• Total EU spending as % of Luxembourg gross national income (GNI): 5.08 %
• Total Luxembourg contribution to the EU budget: € 0.311 billion
• Luxembourg contribution to the EU budget as % of its GNI: 0.88 %

More figures on the EU budget, revenue and spending:

• EU budget in Luxembourg
• Money & the EU
• EU spending & revenue

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.