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LUXEMBOURG
María José Ortiz
Fernando de Anda
LOCATION
GENERAL INFO.
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Population of over half a million people in an area of
approximately 2,586 square kilometres (999 sq mi)
Flag:
Official language(s):Luxembourgish , French,German
Government:
Parliamentary
democracyand Constitutional grand duchy - Grand
DukeGrand Duke Henri - Prime ministerJean-Claude
Juncker
PER CAPITA INCOME
Luxembourg’s per capita income is at $75,880.
That makes it the world’s fourth highest PCI.
 The nation has highly developed industrial and
financial sectors.
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INFRASTRUCTURE
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Luxembourg has an excellent road system, communications network,
and power supply system. The government spends a higher
percentage of its GDP on infrastructure than any other European
nation. There are 5,166 kilometers (3,210 miles) of paved roads,
including 166 kilometers (103 miles) of expressways. The nation's
railways are fully electrified, and the government is spending 12 billion
francs on further improvements to the system. Railroads provide a main
method to transport goods to and from Luxembourg. The Moselle River
has canals which link it to the Rhine River. This waterway provides links
between Luxembourg and ports on the North Sea. The Grand Duchy
has a small merchant marine fleet with 56 commercial vessels. The
nation's main port is the river port of Mertert, which, along with the
smaller port of Bech-Kleinmacher, handled 1,868,230 tons of freight in
1994.
Findel Airport is the nation's only international airport, but it has
become a major air terminal. The airport is 5 miles from the capital. The
government has engaged in a continuing effort to expand the airport's
capacity. Luxembourg has an open-skies agreement with the other EU
members and with the United States that allows unrestricted flights
between the nations. The Grand Duchy's largest airline, Cargolux, is
among Europe's top 10 air cargo carriers. The state-owned airline
provides 3 percent of the government's annual revenue. Luxair is the
national passenger airline and transports over 1 million people
annually.
DEVELOPMENT SYSTEMS
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The keystone of the economic system is free enterprise, and the
government has attempted to promote the well-being of private
industry by every means short of direct interference. The fullemployment policy pursued by every postwar government has
produced a high ratio of economically active population to total
population. Not only is the population economically active, it is also
highly skilled, a fact not overlooked by foreign companies seeking to
invest. The government encourages the diversification of industry by
tax concessions and other means. Luxembourg's successful economy
continues to attract immigrants; the immigrant population comprises
over one-third of the Grand Duchy's total.
Banking has become an important sector of the economy,
compensating for a decline in the steel industry. Successive
governments have taken steps to encourage foreign investment, and
investment incentives cover taxes, construction, and plant equipment.
Government priorities in 2002 included balancing the budget, keeping
spending growth in line with GDP growth, and running a general
government surplus. The government was enacting tax cuts in 2002,
and increased spending in infrastructure, research and development,
education, and pension benefits. Obstacles were removed to parttime employment, more flexible working time arrangements were
made, and child care facilities were expanded.
BANKING SYSTEMS
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Since mid 1970s, Luxembourg banking started achieving prominence and
gradually got the status of one of the major spheres in the country’s
financial scenario. The major financial system of the country is determined
by its banking systems and network.
The apex bank of Luxembourg is the International Bank of Luxembourg,
which was established in 1856. The country is well known for its tertiary
sector and in the same, the banking system of Luxembourg is well
acclaimed.
The private banking Luxembourg is popular all over the world because of a
few of its distinct features. The very first that comes here under the list is the
security and the secrecy system of Luxembourg banking networks. The next
that comes within the list is the multilingual workforce. However, the above
mentioned two features are responsible to spread Luxembourg banking
and financial institutions all over the world.
The Cedel Bank is another important financial establishment that came up
due to the European Markets. The Cedel Bank is a depository that is
responsible for settlements of financial matters and international clearings.
Presently, the banking network of Luxembourg is developing rapidly and
also making a foray to other parts of the world. It has become a symbol of
security and faith to all across the globe.
LABOR LAWS
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The Labour Inspectorate in Luxembourg - L'Inspection du Travail et des
Mines (ITM) - forms part of the Ministry of Labour to whom its Director
reports. The Inspectorate has close cooperation and collaboration with
a number of other organisations and government departments who
also have an interest in the subject of health and safety at work.
Responsibility for monitoring standards of health and safety for
employees in all sectors of industry including commerce and the
service industries but excluding those in the public service as described
above, falls to the Labour Inspectorate. This will include monitoring the
use of radio active substances at the workplace though the radio
protection division of the Ministry of Health will also have an interest in
the safety and health of employees who may be exposed to the
hazards of radiation. The Ministry of Environment has responsibility for
environmental pollution including that caused by waste disposal and
noise.
With the reorganisation of the Labour and Mines Inspectorate in 1974,
the Labour Inspectorate was given responsibility for ensuring the
implementation of all legislation relating to the working conditions and
protection of all employees subject to a contract of employment
except those in the public service. This includes the requirements of
specific mines and quarries legislation.
ITM has responsibility for many other matters apart from
health and safety. These include:
 the prevention and resolution of industrial disputes
 the issue of operating permits to establishments and
activities designated by law with the potential to
create risks to the health and safety of the employees
or the public or to create a nuisance
 the supervision of collective agreements
 the oversight of wages, hours of work and holidays
 the monitoring of the election of employee
representatives, including adjudication on complaints
of irregularities, for the whole area of working conditions
including health and safety in those establishments
employing more than 15 people
 the accreditation of certifying bodies under various
Article 100A directives
 the production of standards as the competent
standards making body for Luxembourg.
The following powers are given to all inspectors and controllers:
 to enter any place of work at any time of day or night without
giving prior notice
 to enter during day-time any premises which can reasonably
be assumed to be a place of work
 to carry out any examination, inspection or enquiry necessary
to establish compliance or alternatively non compliance with
the law
 to question any employer or employee and to require them to
make a written statement of the matters on which they are
questioned
 to require the production of any book, register, file or
document relating to working conditions
 to require notices to be displayed in accordance with the
relevant legislation
TRADE AGREEMENTS
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Luxembourg Friendship, Establishment and Navigation Treaty
Treaty and protocol signed at Luxembourg February 23, 1962;
Ratification advised by the Senate of the United States of America
September 19, 1962;
Ratified by the President of the United States of America November 9, 1962;
Ratified by Luxembourg January 30, 1963;
Ratifications exchanged at Washington February 28, 1963;
Proclaimed by the President of the United States of America March 6, 1963;
Entered into force March 28, 1963.
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
WHEREAS a treaty of friendship, establishment and navigation between the
United States of America and the Grand Duchy of Luxembourg, together
with a related protocol, was signed at Luxembourg on February 23, 1962,
the originals of which treaty and protocol, in the English and French
languages, are word for word as follows:
TREATY of Friendship, Establishment and Navigation between the United
States of America and the Grand Duchy of Luxembourg
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The President of the United States of America
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and
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Her Royal Highness the Grand Duchess of Luxembourg
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desirous of strengthening the bonds of peace and friendship
traditionally existing between their two countries and of encouraging
closer economic and cultural relations between the two peoples, and
being cognizant of the contributions which may be made towards
these ends by arrangements specifying mutually accorded rights and
privileges and promoting mutually advantageous commercial
intercourse and investments,
have resolved to conclude a Treaty of Friendship, Establishment and
Navigation, and for that purpose have appointed as their
Plenipotentiaries,
The President of the United States of America:
His Excellency Mr. James W. Wine, Ambassador Extraordinary and
Plenipotentiary of the United States of America in Luxembourg,