How Luxembourg Became Europe’s Hidden Financial Powerhouse
Luxembourg, a small European nation with a population of around 625,978, is nestled between France, Germany, and Belgium, covering just 998.6 square miles. Despite its size, the country plays a major role in global money, with banking and financial services driving over 35% of its economy.
The Grand Duchy of Luxembourg, the world’s only remaining sovereign grand duchy, operates as a constitutional monarchy. It is also one of the founding members of the European Union. The capital, Luxembourg City, serves as the financial hub, where the official currency is the euro. While Luxembourgish is the national language, German and French are widely used for official matters.
Luxembourg’s financial sector remains a cornerstone of its economy, attracting international clients with its stable regulatory environment. With a mix of local and foreign banks, the country continues to provide specialized services to both residents and non-residents. Its strategic location and multilingual workforce further strengthen its position as a key finance center in Europe.
