tricted to male heirs by the Nassau Family Pact) passed to Adolph of Nassau-Weilburg.[14] During World War I Luxembourg was invaded and occupied by Germany, but was allowed to maintain its independence and political mechanisms. During World War II, Luxembourg was unable to maintain its policy of neutrality when in 1940 Nazi Germany invaded and occupied the country, due to its strategic location on the invasion route into France. In contrast to the First World War experience, Luxembourg was treated as a Germanic territory and informally annexed to an adjacent province of the Third Reich in 1940. A government in exile based in London fought alongside the Allies, sending a small group of volunteers who participated in the Normandy invasion. Luxembourg was liberated in September 1944. It became a founding member of the United Nations in 1946, and of NATO in 1949. In 1957, Luxembourg became one of the six founding countries of the European Economic Community (later the European Union), and, in 1999, it joined the euro currency era. In 2005, a referendum on the EU treaty establishing a constitution for Europe was held in Luxembourg.[15] Politics Main article: Politics of Luxembourg Districts of Luxembourg Luxembourg is a parliamentary, democracy headed by a constitutional monarch. Under the constitution of 1868, executive power is exercised by the Grand Duke and the cabinet, which consists of several other ministers.[16] The Governor has the power to dissolve the legislature and reinstate a new one, as long as the Grand Duke has judicial approval. However, since 1919, sovereignty has resided with the Supreme Court.[17] Legislative power is vested in the Chamber of Deputies, a unicameral legislature of sixty members, who are directly elected to five-year terms from four constituencies. A second body, the Council of State (Conseil d'État), composed of twenty-one ordinary citizens appointed by the Grand Duke, advises the Chamber of Deputies in the drafting of legislation.[18] The Grand Duchy has three lower tribunals (justices de paix; in Esch-sur-Alzette, the city of Luxembourg, and Diekirch), two district tribunals (Luxembourg and Diekirch) and a Superior Court of Justice (Luxembourg), which includes the Court of Appeal and the Court of Cassation. There is also an Administrative Tribunal and an Administrative Court, as well as a Constitutional Court, all of which are located in the capital. Administrative divisions Main articles: Districts of Luxembourg, Cantons of Luxembourg, and Communes of Luxembourg Further information: Administrative divisions of Luxembourg Luxembourg is divided into 3 districts, which are further divided into 12 cantons and then 116 communes. Twelve of the communes have city status, of which the city of Luxembourg is the largest. The districts are Diekirch, Grevenmacher, and Luxembourg. Foreign relations Main article: Foreign relations of Luxembourg Signing of the Rome Treaty on 25 March 1957. Luxembourg is a founding member of the EEC and the European Union in 1993. Luxembourg has long been a prominent supporter of European political and economic integration. In efforts foreshadowing European integration, Luxembourg and Belgium in 1921 formed the Belgium-Luxembourg Economic Union (BLEU) to create an inter-exchangeable currency and a common customs regime. Luxembourg is a member of the Benelux Economic Union and was one of the founding members of the European Economic Community (now the European Union). It also participates in the Schengen Group (named after the Luxembourg village of Schengen where the agreements were signed), whose goal is the free movement of citizens among member states. At the same time, the majority of Luxembourgers have consistently believed that European unity makes sense only in the context of a dynamic transatlantic relationship, and thus have traditionally pursued a pro-NATO, pro-US foreign policy. Luxembourg is the site of the European Court of Justice, the European Court of Auditors, the Statistical Office of the European Communities ("Eurostat") and other vital EU organs. The Secretariat of the European Parliament is located in Luxembourg, but the Parliament usually meets in nearby Strasbourg. Military Main article: Military of Luxembourg The contribution Luxembourg makes to its defense and to NATO consists of a small army (currently consisting of around 800 people). As a landlocked country, it has no navy. Luxembourg also lacks an air force, though the seventeen NATO AWACS aeroplanes are for convenience registered as aircraft of Luxembourg.[19] In accordance with a joint agreement with Belgium, both countries have put forth funding for one A400M military cargo plane, currently on order. Luxembourg still jointly maintains three NATO Boeing 707 model TCAs (for cargo and training purposes) based at NATO Air Base Geilenkirchen.[19] Geography Main article: Geography of Luxembourg The largest towns are Luxembourg, Esch-sur-Alzette, Dudelange, and Differdange. Luxembourg is one of the smallest countries in Europe, and ranked 170th in size of all the 194 independent countries of the world; the country is about 2,586 square kilometres (998 sq mi) in size, and measures 82 km (51 mi) long and 57 km (35 mi) wide. It lies between latitudes 49° and 51° N, and longitudes 5° and 7° E. To the east, Luxembourg borders the German Bundesländer of Rhineland-Palatinate and Saarland, and, to the south, it borders the French région of Lorraine. The Grand Duchy borders the Belgian Walloon Region, in particular the latter's provinces of Luxembourg and Liège, part of which comprises the German-speaking Community of Belgium, to the west and to the north respectively. The northern third of the country is known as the 'Oesling', and forms part of the Ardennes. It is dominated by hills and low mountains, including the Kneiff near Wilwerdange,[20] which is the highest point, at 560 metres (1,837 ft). Other mountains are the 'Buurgplaaz' at 559 metres near Huldange and the 'Napoléonsgaard' at 548 metres near Rambrouch. The region is sparsely populated, with only one town (Wiltz) with a population of more than four thousand people. Countryside of Alscheid. The southern two-thirds of the country is called the "Gutland", and is more densely populated than the Oesling. It is also more diverse, and can be divided into five geographic sub-regions. The Luxembourg plateau, in south-central Luxembourg, is a large, flat, sandstone formation, and the site of the city of Luxembourg. Little Switzerland, in the east of Luxembourg, has craggy terrain and thick forests. The Moselle valley is the lowest-lying region, running along the southeastern border. The Red Lands, in the far south and southwest, are Luxembourg's industrial heartland and home to many of Luxembourg's largest towns. The border between Luxembourg and Germany is formed by three rivers: the Moselle, the Sauer, and the Our. Other major rivers are the Alzette, the Attert, the Clerve, and the Wiltz. The valleys of the mid-Sauer and Attert form the border between the Gutland and the Oesling. Climate Luxembourg has an oceanic climate (Köppen: Cfb), marked by high precipitation, particularly in late summer.[21] Economy Main article: Economy of Luxembourg Luxembourg has been part of the eurozone since 1999. Luxembourg's stable, high-income economy features moderate growth, low inflation, and low unemployment. The industrial sector, which was dominated until the 1960s by steel, has diversified to include chemicals, rubber, and other products. During the past decades, growth in the financial sector has more than compensated for the decline in steel. Services, especially banking and other financial exports, account for the majority of economic output. Luxembourg is the world's second largest investment fund center (after the United States), the most important private banking center in the Eurozone and Europe's leading center for reinsurance companies. Moreover, the Luxembourgish government has tried to attract internet start-ups. Skype and Amazon are two of the many internet companies that have shifted their regional headquarters to Luxembourg. Concern about Luxembourg's banking secrecy laws, and its reputation as a tax haven, led in April 2009 to it being added to a "grey list" of nations with questionable banking arrangements by the G20. Luxembourg adapted some months later the OECD standards on exchange of information and moved into the category of 'Jurisdictions that have substantially implemented the internationally agreed tax standard.'[22][23] In March 2010, the Sunday Telegraph reported that most of Kim Jong-Il's $4bn in secret accounts is in Luxembourg banks.[24] Agriculture is based on small, family-owned farms. Luxembourg has especially close trade and financial ties to Belgium and the Netherlands (see Benelux), and as a member of the EU it enjoys the advantages of the open European market. Luxembourg possesses the highest GDP per capita in the world (US$87,995 as of 2006),[25] the 24th highest Human Development Index, and the 4th highest rated in the quality of life index.[26] The GDP per capita number however is greatly inflated, as many people from Belgium, France, and Germany commute to Luxembourg for work.[citation needed] As of March 2006, unemployment is 4.8% of the labor force.[27] In the fiscal year of 2005 and 2006, Luxembourg ran a budget deficit for the first time in many years, mostly because of slower international economic growth.[28] With $80 billion (November 2010), the country ranks twelfth in the world in holdings of U.S. Treasury securities.[29] The ranking is however imperfect as some foreign owners entrust the safekeeping of their securities to institutions that are neither in the United States nor in the owner's country of residence.[30] Luxembourg is promoting economic relations with foreign firms and countries.[31][32][33] GDP growth is set to enter a recession in 2012.[34] Transport Main article: Transport in Luxembourg Luxembourg has efficient road, rail and air transport facilities and services. The road network has been significantly modernized in recent years with 147 km of motorways connecting the capital to adjacent countries. The advent of the high-speed TGV link to Paris has led to renovation of the city's railway station while a new passenger terminal at Luxembourg Airport has recently been opened. There are plans to introduce trams in the capital and light-rail lines in adjacent areas within the next few years. The number of cars per 1000 persons amount to 680.1 in Luxembourg—within eurozone only British overseas territory Gibraltar and the Principality of Monaco score higher in this respect.[35] Communications The telecommunications industry in Luxembourg is liberalized and the electronic communications networks are significantly developed. Competition between the different operators is guaranteed by the legislative framework Paquet Telecom[36] of the Government of 2005 which transposes the European Telecom Directives into Luxembourgean law. This encourages the investment in networks and services. The regulator ILR – Institut Luxembourgeois de Régulation[37] ensures the compliance to these legal rules Luxembourg has modern and widely deployed optical fibre and cable networks throughout the country. With its central position in Europe, stable economy and low taxes, Luxembourg is an ideal gateway to the European telecommunication markets.[38][39][40] It ranks 2nd in the world in the development of the Information and Communication Technologies in the ITU ICT Development Index and 8th in the Global Broadband Quality Study 2009 by the University of Oxford and the University of Oviedo.[41][42][43][44] Luxembourg is connected to all major European Internet Exchanges (AMS-IX Amsterdam, DE-CIX Frankfurt, LINX London), datacenters and POPs through redundant optical networks.[45][46][47][48][49] In addition, the country is connected to the virtual meetme room services (vmmr)[50] of the international data hub operator Ancotel.[51] This enables Luxembourg to interconnect with all major telecommunication operators[52] and data carriers worldwide. The interconnection points are in Frankfurt, London, New York and Hong Kong.[53] Several providers interconnect Luxembourg to the major European data hubs Teralink[54] (P&TLuxembourg, also called EPT Luxembourg: incumbent operator)[55] LuxConnect[56] (shareholder : Government) LuxConnect tested in June 2011 the 100G coherent transmission of data signals between Luxembourg and Amsterdam.[57] Artelis/Cegecom[58] (alternative telecommunications provider in Luxembourg and Saarland) Satellite connectivity – Teleports (SES),[59] Broadcasting Center Europe[60] and P&T Luxembourg Teleport.[61] [62] [63] Luxembourg is connected through an optical DWDM network, called Teralink[64] to several Tier 1 upstream providers like Level3 and Global Crossing. Teralink offers connectivities up to 100 Gbit/s. P&TLuxembourg has established in 2011 a coherent 100Gbit/s IP connection between Frankfurt and Luxembourg with live traffic.[65][66][67][68] The Internet IPV6 protocol has been introduced to the country by Restena and P&T Luxembourg.[69] Luxembourg has two Internet exchange points and one Carrier Ethernet Exchange points. LIX is a neutral Internet exchange operated by the RESTENA Foundation. Its aim is to easily interconnect the different Internet Service Providers (ISPs) within Luxembourg.[70] LUX-CIX is Luxembourg's neutral and commercial Internet Exchange Point which was founded in 2009 by Cegecom, Datacenter Luxembourg, Global Media Systems, INEXIO, LuxConnect, P&T Luxemboug and Root eSolutions. It offers a short, fast and efficient route to the major European Internet networks.[71][72] LEX is the Luxembourg Ethernet Exchange located in the Tier IV certified ebrc datacenter [73] The online portal De Guichet[74] of the Grand Duchy of Luxembourg is a single one-stop online shop for citizens and companies to realize different sorts of administrative steps (procedures, online forms, downloadable forms and advices) by Internet.[75] PSA Peugeot Citroën, with P&T Luxembourg as its partner, has introduced an integrated mobile telecommunication solution for the development of its telematic services in Europe.[76][77] Datacenters More than 17 data centers[78][79][80] are operating in Luxembourg. The number is constantly growing. Two of the ebrc data centers are Tier IV classified & certificated.[81] Demographics Main article: Demographics of Luxembourg Ethnicity The people of Luxembourg are called Luxembourgers.[82] The immigrant population increased in the 20th century due to the arrival of immigrants from Belgium, France, Italy, Germany, and Portugal, with the majority coming from this latter. In the 2001 census, there were 58,657 inhabitants with Portuguese nationality.[83] Since the beginning of the Yugoslav wars, Luxembourg has seen many immigrants from Bosnia and Herzegovina, Montenegro, and Serbia. Annually, over 10,000 new immigrants arrive in Luxembourg, mostly from the EU states, as well and Eastern Europe. As of 2000, there were 162,000 immigrants in Luxembourg, accounting for 37% of the total population. There were an estimated 5,000 illegal immigrants, including asylum seekers, in Luxembourg as of 1999.[84] Language Main articles: Languages of Luxembourg and Literature of Luxembourg Three languages are recognised as official in Luxembourg: French, German, and Luxembourgish, a Franconian language of the Moselle region that is also spoken in neighbouring parts of France and Germany. Though Luxembourgish is part of the West Central German group of High German languages, more than 5,000 words in the Luxembourgish have their origin in the French language.[85][86] The first printed sentences in Luxembourgish were released by the weekly journal the 'Luxemburger Wochenblatt' in the second edition of the 14. April 1821. Apart from being one of the three official languages, Luxembourgish is also considered the national language of the Grand Duchy; it is the mother tongue or "language of the heart" for nearly all Luxembourgers.[citation needed] Each of the three languages is used as the primary language in certain spheres. Luxembourgish is the language that Luxembourgers generally use to speak to each other, but it is not often used as the written language. Since the 1980s, an increasing number of novels have however been written in Luxembourgish. Most official (written) business is carried out in French. German is usually the first language taught in school and is the language of much of the media and of the church.[87] Luxembourg's education system is trilingual: the first years of primary school are in Luxembourgish, before changing to German, while in secondary school, the language of instruction changes to French.[88] Proficiency in all three languages is required for graduation from secondary school, but half the students leave school without a certified qualification, with the children of immigrants being particularly disadvantaged.[89] In addition to the three official languages, English is taught in the compulsory schooling and much of the population of Luxembourg can speak English, at any rate in Luxembourg City. Portuguese, the language of the largest immigrant community, is also spoken by large parts of the population, but by relatively few from outside their community.[90] Notre-Dame Cathedral, Luxembourg. Religion Main article: Religion in Luxembourg Luxembourg is a secular state, but the state recognises certain religions as officially mandated religions. This gives the state a hand in religious administration and appointment of clergy, in exchange for which the state pays certain running costs and wages. Currently, religions covered by such arrangements are Roman Catholicism, Judaism, Greek Orthodoxy, Anglicanism, Russian Orthodoxy, Lutheranism, Mennonitism and Islam.[91] Since 1980 it has been illegal for the government to collect statistics on religious beliefs or practices.[92] An estimation by the CIA Factbook for the year 2000 is that 87% of Luxembourgers are Catholics, including the royal family, the remaining 13% being made up of Muslims, Protestants, Orthodox Christians, Jews, and those of other or no religion.[25] According to a 2005 Eurobarometer poll,[93] 44% of Luxembourg citizens responded that "they believe there is a God", whereas 28% answered that "they believe there is some sort of spirit or life force" and 22% that "they do not believe there is any sort of spirit, god, or life force". Education The University of Luxembourg is the only university in Luxembourg. Health Luxembourg sells the most alcohol in Europe per capita.[94] However, the large proportion of alcohol purchased by customers from neighbouring countries contributes to the statistically high level of alcohol sales per capita; this level of alcohol sales is thus not representative of the actual alcohol consumption of the Luxembourg population.[95] Culture Main articles: Culture of Luxembourg, Sport in Luxembourg, and Cuisine of Luxembourg Edward Steichen, Luxembourgish photographer and painter Luxembourg has been overshadowed by the culture of its neighbours, although, having been for much of its history a profoundly rural country, it retains a number of folk traditions. There are several notable museums, mostly located in the capital; these include the National Museum of History and Art (MNHA), the Luxembourg City History Museum, and the new Grand Duke Jean Museum of Modern Art (Mudam). The National Museum of Military History (MNHM) in Diekirch is especially known for its representations of the Battle of the Bulge. The city of Luxembourg itself is on the UNESCO World Heritage List, on account of the historical importance of its fortifications.[96] The country has produced so