Luxembourg

At the close of the Napoleonic Wars in 1815, Luxembourg was established as a grand duchy by the Congress of Vienna and placed under the rule of William I, King of the Netherlands. The grand duchy supported the Belgian revolution against William in 1830; in 1831 Belgium became an autonomous kingdom and was allotted the French-speaking part of Luxembourg by the Great Powers (France, Britain, Prussia, Russia, and Austria). William I was to retain the Luxembourgian-speaking part, a situation he finally accepted in 1839. From 1839 until 1867, Luxembourg was administered autonomously from the Netherlands. In 1842 Luxembourg became a member of the Prussian-led German customs union (Zollverein), and began the process of transformation into an industrial nation. In 1856, William II of the Netherlands introduced a liberal constitution, and in 1867, following efforts by France to purchase Luxembourg—which provoked a dangerous crisis in Franco-Prussian relations—Luxembourg became a sovereign nation with its independence guaranteed by international treaty. The treaty also provided for Luxembourg’s perpetual neutrality. With the death of William III in 1890 the grand ducal crown passed to Adolf of the German House of Nassau; in 1912 the Frankish Salic Law preventing female succession was repealed and Marie Adélaide became the first Grand Duchess.

In 1914 German military forces violated Luxembourg’s neutrality, occupying the country throughout World War I. The grand duchy joined the League of Nations in 1920.

During World War II Luxembourg was invaded by Germany on May 10, 1940. The reigning Grand Duchess, Charlotte, subsequently established a government-in-exile in London. Allied military forces liberated Luxembourg in September 1944, and the country was restored to civilian control. On June 26, 1945, it became a founding member of the UN. In 1948 the customs union with Belgium and the Netherlands was established; in the same year Luxembourg abrogated its traditional neutrality. It joined NATO in 1949. During the 1950s Luxembourg pursued European cooperation, becoming a founder member of the European Coal and Steel Community (ECSC), the European Economic Community (EEC), and Euratom. Early in 1957 France, West Germany (now part of the Federal Republic of Germany), and Luxembourg founded an international company to canalize the River Mosel. On May 4, 1961, Prince Jean, the heir apparent, was sworn in as governor by his mother, Grand Duchess Charlotte. The duchess abdicated on November 12, 1964; immediately afterwards, Jean became grand duke.

Luxembourg’s post-1945 politics have been characterized by consensus, coalitions, and long-serving prime ministers. Pierre Werner was prime minister from 1959 until 1974, heading coalition governments between his own Christian Social People’s Party and the Democrats (1959-1964; 1968-1974) and the Luxembourg Socialist Workers’ Party (1964-1968). At the general election of May 1974 the Christian Social People’s Party lost its political dominance for the first time since 1919. A left-of-centre coalition of the Democrats and Luxembourg Socialist Workers’ Party took power, with Gaston Thorn, a Democrat, as prime minister. Werner and the Christian Social People’s Party regained their traditional dominance in 1979, forming a coalition with the Democrats that was forced by prolonged recession to introduce an economic austerity programme.

Werner finally retired before the 1984 elections, to be succeeded by Jacques Santer as Christian Social People’s Party leader. Popular reaction against the recession and austerity measures led to the Luxembourg Socialist Workers’ Party making strong gains in the 1984 elections. A Christian Social-Socialist Worker coalition led by Santer took office and retained power, albeit with reduced majorities, after the elections of June 1989 and June 1994.

Luxembourg’s Chamber of Deputies ratified the Maastricht Treaty in July 1992. Clauses in the treaty relating to foreigners’ electoral rights and monetary union would require changes to Luxembourg’s constitution. Santer resigned as prime minister in January 1995, to take up an appointment as president of the European Commission, and Jean-Claude Juncker was appointed to replace him. Juncker was re-elected in 1999 and again in 2004.

In March 1998 the grand duke Jean conferred broad constitutional powers on his son and heir, Prince Henri, in what was believed to be preparation for the latter’s succession to the throne. Henri was given the authority to deputize for his father in all official capacities. In October 2000 Jean finally abdicated and Prince Henri became Grand Duke of Luxembourg. Euro notes and coins were adopted in January 2002 as part of the country’s involvement in the Single European Currency.