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• The recorded history of Luxembourg begins with the acquisition of Lucilinburhuc (today Luxembourg Castle) by Siegfried, Count of Ardennes in 963. Around this fort, a town gradually developed, which became the centre of a small state of great strategic value. In the 14th and early 15th centuries three members of the House of Luxembourg reigned as Holy Roman Emperors. In 1437, the House of Luxembourg suffered a succession crisis, precipitated by the lack of a male heir to assume the throne, which led to the territory being sold by Duchess Elisabeth to Philip the Good of Burgundy.

• In the following centuries, Luxembourg's fortress was steadily enlarged and strengthened by its successive occupants, the Bourbons, Habsburgs, Hohenzollerns, and the French, among others. After the defeat of Napoleon in 1815, Luxembourg was disputed between Prussia and the Netherlands. The Congress of Vienna formed Luxembourg as a Grand Duchy in personal union with the Netherlands. Luxembourg also became a member of the German Confederation, with a Confederate fortress manned by Prussian troops.

• The Belgian Revolution of 1830–1839 reduced Luxembourg's territory by more than half, as the predominantly francophone western part of the country was transferred to Belgium. Luxembourg's independence was reaffirmed by the 1839 First Treaty of London. In the same year, Luxembourg joined the Zollverein. Luxembourg's independence and neutrality were again affirmed by the 1867 Second Treaty of London, after the Luxembourg Crisis nearly led to war between Prussia and France. After the latter conflict, the Confederate fortress was dismantled.

• The King of the Netherlands remained Head of State as Grand Duke of Luxembourg, maintaining personal union between the two countries until 1890. At the death of William III, the Dutch throne passed to his daughter Wilhelmina, while Luxembourg (at that time restricted to male heirs by the Nassau Family Pact) passed to Adolph of Nassau-Weilburg.

• 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.

• 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. 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.

• 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.

• 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.

• 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 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.

• The contribution Luxembourg makes to its defence 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. 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.

• Luxembourg is one of the smallest countries in Europe, and ranked 175th in size of all the 194 independent countries of the world; the country is about 2,586 square kilometres in size, and measures 82 km (51 miles) long and 57 km (35 miles) 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, 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.

• 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.

• 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. In March 2010, the Sunday Telegraph reported that most of Kim Jong-Il's $4bn in secret accounts is in Luxembourg banks. 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 eBay 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.'

• 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), the 24th highest Human Development Index, and the 4th highest rated in the quality of life index. As of March 2006, unemployment is 4.8% of the labor force. For 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. The country ranks with 80 billion $ of U.S. Treasury securities (November 2010) twelfth in the world. 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. Luxembourg is promoting economic relations with foreign firms and countries.

• 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—around the world only British overseas territory Gibraltar and the Principality of Monaco score higher in this respect.

• 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. 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.

• 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.

• 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. However, as proficiency in all three languages is required for graduation from secondary school, half the students leave school without a certified qualification, with the children of immigrants being particularly disadvantaged.

• 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.

• 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.

• Since 1980 it has been illegal for the government to collect statistics on religious beliefs or practices. An outdated 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.

• According to a 2005 Eurobarometer poll, 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".

• 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.

• The country has produced some internationally known artists, including the painters Théo Kerg, Joseph Kutter and Michel Majerus, as well as the photographer Edward Steichen. Steichen's The Family of Man exhibition is now permanently housed in Clervaux, and it has been placed on UNESCO's Memory of the World register. Movie star Loretta Young was of Luxembourgish descent.

• Luxembourg was the first city to be named European Capital of Culture twice. The first time was in 1995. In 2007, the European Capital of Culture was to be a cross-border area consisting of the Grand Duchy of Luxembourg, the Rheinland-Pfalz and Saarland in Germany, the Walloon Region and the German-speaking part of Belgium, and the Lorraine area in France. The event was an attempt to promote mobility and the exchange of ideas, crossing borders in all areas, physical, psychological, artistic and emotional.

• Luxembourg was represented at the World Expo 2010 in Shanghai, China from 1 May to 31 October 2010 with its own pavilion. The pavilion was based on the translation of the word Luxembourg into Chinese, which means ‘Lu Sen Bao’: Forest and Fortress. It represented Luxembourg as the ‘Green Heart in Europe'.