It’s getting harder to overlook Luxembourg.
Nestled between Belgium, Germany, and
France, the country is only 51 miles long and 35
miles wide (roughly the size of Rhode Island).
Following the decline of the steel industry in
the 1970s, the Grand Duchy (Luxembourg is
the only country with a grand duke as its head
of state) started courting multinational companies. Amazon and Microsoft are now among
those with a large presence in the capital of
Luxembourg City. With a population of 115,000,
it is the largest city. Each day, some 200,000
commuters arrive from neighboring countries.
Luxembourg fund managers today have some
four trillion euros in assets under management
— second only to the United States.
The transformation has not always been easy
— as rush-hour drivers can attest. The 2014
“LuxLeaks” scandal, in which over 350 confi-
dential tax agreements between companies and
the government were made public, continues
to reverberate. But the Grand Duchy continues
to evolve. Construction cranes dot the capital
skyline, as Deloitte and other multinational
companies build new offices. By 2021, a tramline
will run from the train station through the office
district of Kirchberg (home to the European
Court of Justice and several major law firms)
and on to the airport. From there, you can fly
directly to most major European cities.
However, why fly when there’s plenty to stay
and see? Two euros gets you a bus or train ticket
to anywhere in the country (compactness has its
virtues). There’s the “Little Switzerland” region of
Mullerthal, great for hiking, visiting castles, and
sipping local wines. Farther south, where the borders of Luxembourg, Germany, and France meet,
is the town of Schengen, which lent its name to
the treaty that permits passport-free travel among
the EU member countries. Or grab a bike and
explore the 800 miles of trails that crisscross the
Grand Duchy. No passport required.
To support your global practice, ACC Docket offers country-specific fun facts
from your peers who’ve been there — literally.
power parity in USD)
576,249 (2015 estimate)
According to Transparency
Index,” Luxembourg is the
10th “cleanest” (i.e., least
corrupt) country out of the
Economic growth is projected
to stay robust at above four
percent in 2017 and 2018,
due to strong domestic
demand and strengthening
activity in the domestic
financial sector, which will
foster exports. Inflation
is rising due to higher
commodity prices and
increasing wages, due to
automatic wage indexation.
Unemployment is falling,
but, at six percent, the rate
remains high, according
to the Organisation for Cooperation and Development.
Luxembourg Wort, English
language news website
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