Luxembourg, as a pocket-sized country surrounded by powerful countries, has taken the alliance with neighboring countries to obtain the protection of powerful countries as an important strategy for survival and development since its independence. Luxembourg signed the Treaty of German Customs Union with Germany on 1842, which linked the economy of Luxembourg with that of Germany. Lulimburg was occupied by Germany in the First World War. 19 18 The Luxembourg government announced the abolition of the 1842 tariff treaty with Germany. 192 1 established an economic and customs union with Belgium. During World War II, Luxembourg was invaded by Germany again, and its economic development was seriously damaged. The war destroyed 45% of the cultivated land in Luxembourg, and the houses in13 of the country were damaged to varying degrees. After World War II, Luxembourg participated more actively in regional and world economic cooperation organizations, and made up for its lack of resources and narrow market by strengthening economic ties with other countries. For example, as early as 1944, before the end of World War II, Luxembourg formed the Benelux Customs Union with the Netherlands and Belgium, and further formed the Benelux Economic Union in 1958. In addition, Luxembourg has successively participated in multilateral repayment agreements between Belgium, Luxembourg, France and Italy, European Payment Union, European Coal and Steel Joint Venture, European Economic Community, European Economic Cooperation Organization and Organization for Economic Cooperation and Development. The expansion of international cooperation and exchanges has enabled Luxembourg to gain a stable external environment politically and integrate into the whole of Europe economically, thus greatly promoting the country's economic development.
Luxembourg's steel industry has always been the country's main pillar industry. Therefore, some people say that Luxembourg's economic survival can be attributed to the development of barren limonite in the south of the country. /kloc-The discovery and development of iron ore in the south of Luxembourg in the middle of 0/9th century not only played an important role in the balance of Belgium's import and export trade, but also greatly promoted the development of Luxembourg's iron and steel industry. During the period of 65438-70s, Luxembourg introduced the basic bottom-blown converter steelmaking method invented by Gilklett and Thomas, relying on domestic iron ore and coal in Ruhr area, and the iron and steel industry developed rapidly. Luxembourg pig iron output 1855 60 tons, 1873 250,000 tons, half of which is made into steel. By 1927, Luxembourg's steel output reached 2.7 million tons, making it one of the world's important steel producers. As people often say, Belgium's industrialization is realized in coal fields; Luxembourg's industrialization is in the field of iron ore.
Since 1970s, Luxembourg's iron and steel industry has been in a state of stagnation, facing a serious shortage of start-up. 1974, the output of crude steel and pig iron in Luxembourg reached record-breaking 6.448 million tons and 5.648 million tons respectively. From 1975 to 1980, Luxembourg's crude steel output did not exceed 5.6 million tons, and in 1983 it was only 3.288 million tons. Luxembourg's economy, which relies too much on the steel industry, is plagued by the structural crisis in this industrial field, and the entire national economy is shrinking. 1983 industrial production ratio 1994 decreased by 20.7%, with an average annual decrease of 2.54%, which is unique among European countries.
As early as the 1960s, Luxembourg realized the disadvantages of the single economy and began to vigorously promote the diversified development of the national economy. During the ten years from 1970 to 198 1, the proportion of metallurgical industry in Luxembourg's manufacturing industry decreased from 66. 1% to 46.5%, while the rubber and plastic industry, electrical products, transportation equipment, machine building and food and beverage industries all developed greatly. The policy of economic diversification has attracted a large number of well-known foreign companies such as Goodyear Tire and Rubber Company of the United States to invest and set up factories in Luxembourg, and the arrival of a large number of foreign capital has in turn promoted the diversification of Luxembourg's economy.
While the steel industry in Luxembourg is shrinking, the financial industry is developing rapidly. Luxembourg's economy, society, politics and environment are very stable. Since the 1960s, the government has adopted a series of policies to promote the development of the financial industry, such as establishing a strict bank secrecy system, implementing a very preferential tax system for holding companies, and completely liberalizing foreign exchange and capital flows. These stable environment and preferential policies not only promote the development of domestic financial industry, but also attract a large number of foreign financial enterprises to start businesses in Luxembourg. By the end of 198 1, Luxembourg had 1 15 banks, most of which were foreign banks. The European Investment Bank and the European Monetary Cooperation Fund, which belong to the European Union, have also set up offices in Luxembourg. Luxembourg has become an important international financial center. The proportion of financial industry in GDP rose from10/0.5% in 1960 to 13% in 1982, making it the second pillar industry of the national economy after the steel industry. After the 1980s, the economies of western countries were in recession, and the debt crisis of developing countries appeared, which dealt a great blow to the international financial industry. This international climate has also had an impact on Luxembourg, and some foreign banks have withdrawn from Luxembourg. To this end, the Luxembourg government has taken a series of measures to reduce the tax rate and continue to maintain Luxembourg's international status as a major financial center. 65438+10.9% of GDP in 990 comes from financial services. By the end of 1993, there were 22 1 banks in Luxembourg. 1992, banking and insurance employees 17700.
Economic development situation
economic structure
Since the end of World War II, Luxembourg's economy has made great progress and profound changes have taken place in its economic structure. The proportion of primary and secondary industries in GDP dropped significantly, and the tertiary industry rose rapidly.
Agriculture has never played an important role in Luxembourg's economy. The proportion of agricultural output value in GDP has been declining in the last 50 years since the end of World War II: 1950 was 12%, 1970 was 5.2%, 1980 was further reduced to 2%, and 1990 was slightly increased. At the same time, the proportion of rural power in the total employed population also showed a downward trend. 1990, there were 3,803 farmers in China, which was only equivalent to 32.85 per year in 1958. The agricultural population of 1990 is 14593, which is 43.7% less than that of 1970, accounting for 3.9% of the total population.
Agriculture in Luxembourg is dominated by animal husbandry, which accounts for 83.7% of the total agricultural output value, followed by planting. In Luxembourg, the area planted with grain has been declining continuously. 1990 The planting area of various crops was 5589 1 hectare, of which the grain planting area was 32980 hectares, which was 36.9% lower than that of 1958. 1990 The total output of Luxembourg was 389,000 kg, which could not meet the domestic demand at all. In contrast to the decrease in the total planting area and yield of cereals, the planting area and yield of beverages such as barley, oats and corn have increased. During the ten years from 1980 to 1990, the corn yield increased by 7 1.6%. Grape is the main cash crop in Luxembourg. Grape producing areas are mainly concentrated in Mo Ze Valley, and the grapes produced are used for wine making. 1990 Luxembourg wine production reached 15. 1 10,000 kg. In addition, Luxembourg also produces vegetables and flowers.
Luxembourg's industry once played an important role in the national economy, but since the 1960s, its proportion in the gross domestic product (GDP) and the total employment of the labor force has also shown a downward trend. However, since the first steelmaking furnace was built in Didrange in April, this industry has a history of 100 years. After the output of crude steel and pig iron in Luxembourg hit record highs in 1974, due to the development of world science and technology and the rise of high-tech departments, the industrial structure of various countries has undergone tremendous changes, and the consumption and demand of steel products have declined, leading to the decline of the world amaranth industry. Luxembourg's iron and steel industry is also caught in the dilemma of underemployment, and the crude steel output has been hovering around 3 million tons. Luxembourg is a country short of resources. The mining industry, especially iron ore, which once played an important role in promoting the development of Luxembourg's iron and steel industry, was depressed due to the exhaustion of resources. Since 198 1, almost all iron mines in Luxembourg have been closed. At present, the iron ore needed by Luxembourg steel industry mainly comes from France, Rosen, Switzerland, Brazil and other countries, and the coke mainly comes from Germany. Albert Group is the largest steel enterprise in Luxembourg and one of the largest steel enterprises in Europe. 1990 Fortune 500 companies rank 22 1 with assets of 83.7 billion US dollars. Luxembourg 1990 crude steel output is 3.56 million tons, 9.4 tons in China, ranking first in the world. 1/3 of the national manufacturing output value in that year came from the steel industry.
In addition to the developed steel industry, chemical industry, machinery manufacturing, paper making, printing and food industry are also very important industrial sectors in Luxembourg. From 65438 to 0992, the national industrial output value accounted for 33.7% of the gross domestic product (GDP), of which the manufacturing output value accounted for 25.9% of the total GDP. 1992, industrial employment accounted for 29. 1% of the total labor force, and manufacturing accounted for 17.7%.
Luxembourg's chemical industry is a new industrial sector, and its main products are rubber, plastics, synthetic fibers, medicines and fertilizers.
Luxembourg's fuel power industry is also an important economic sector in Luxembourg. 1990, the national power generation137.8 billion kwh, of which hydropower generation is 820 million kwh, accounting for 59.9% of the total power generation. In addition, Luxembourg also uses the waste heat from steelmaking to generate electricity. 1989 per capita consumption per capita electricity consumption in Luxembourg is 13976 kwh, ranking second in Europe. At present, most of Luxembourg's energy resources depend on imports, and 199 1 year petroleum products account for 4% of the total imports in that year.
Luxembourg is short of natural resources, with a small domestic market and a high dependence on foreign trade. During the period of 1992, the country's main export commodities were crude steel and its products (67.762 billion Luxembourg francs), plastics, rubber products (27.5865438 billion Luxembourg francs) and machinery and equipment (30.887 billion Luxembourg francs), with a total export of 208.587 billion Luxembourg francs. The main imported products are mineral raw materials (including fuels), crude metals and their products, machinery and equipment, chemical products and transportation equipment. The total import volume reached 265.903 billion Luxembourg francs.
Political situation and social stability
Luxembourg is one of the countries with the most stable political and social situation in Europe. After World War II, the Christian Socialist Party, the Social Workers' Party and the Democratic Party alternately formed a coalition government. Although Luxembourg has a responsible cabinet, the parliament can vote no confidence in the cabinet, let the cabinet resign, or the prime minister can propose to re-elect the parliament in advance, but in fact, every government has served until its term expires.
The political parties and groups that influence Luxembourg's political and social life mainly include: Christian Socialist Party, Social Workers' Party, Democratic Party, Luxembourg Producers' Party, Social Democratic Party, Independent Socialist Party, Green Party, Luxembourg Federation of Trade Unions, Luxembourg Federation of Independent Trade Unions, Luxembourg Federation of Christian Trade Unions, Private Enterprise Employees' General Union, National Civil Servants' General Union, Farmers' Center, Luxembourg Women's General Union, and National Federation of Railway and Transport Workers.
enterprise management
Luxembourg is an ideal place for foreign investment because of its economic and political stability. Luxembourg has no special restrictions on foreigners investing and setting up factories in Luxembourg. All foreign companies must abide by relevant laws and regulations when doing business in Luxembourg, just like domestic companies in Luxembourg.
Opening conditions for foreign businessmen
There are three main types of companies in Luxembourg. One is a company limited by shares (SA); The other is a private limited company (SARL); There is also a controlling investment company. Holding companies can also take the form of limited companies, but this situation is relatively rare. Luxembourg has different legal provisions on the conditions for the establishment of these three types of companies.