LUXEMBOURG

María José OrtizFernando de Anda

LOCATION

GENERAL INFO.

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.

INFRASTRUCTURE

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

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 full-employment 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 part-time employment, more flexible working time arrangements were made, and child care facilities were expanded.

BANKING SYSTEMS

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

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

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

The President of the United States of America and Her Royal Highness the Grand Duchess of Luxembourg 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,