Luxembourg

 General information about the country (geographical position,

borders, population, GDP, political structure)
Luxembourg is a small landlocked state in Western Europe. It is surrounded on all
sides by large Western European countries - Belgium, Germany and France.
Together with Belgium and the Netherlands, it is a member of the Benelux. In the
east, the country is bordered by the Moselle River. The total area of the country is
about 2.6 thousand square meters. km.
The total number is 613 thousand people, including 214 thousand people in
Luxembourg. They speak Luxembourgish of the Germanic group of the Indo-
European family. German and French are also widespread.
The GDP figure in 2020 was $71,113 million, Luxembourg is number 72 in the
ranking of GDP of the 196 countries. The absolute value of GDP in Luxembourg
rose $161 million with respect to 2019. By the way, Luxembourg has become the
richest country in the EU in terms of a share of GDP per capita.
The head of state is the Grand Duke. According to the constitution, he single-
handedly exercises executive power; determines the procedure for organizing the
government and its composition, approves and promulgates laws, appoints to civil
and military positions, commands the armed forces, concludes international
treaties, etc. In fact, all executive power belongs to the government, appointed by
the Grand Duke, consisting of the prime minister and ministers. The highest
legislative body is the Chamber of Deputies, elected by the population for a 5-year
term through general direct elections through a system of proportional
representation.
By the way, Luxembourg is one of the first in terms of income and well-being,
with indicators above average in social connections, civic engagement, jobs and
wages, work-life balance, personal safety, subjective well-being, public health,
environmental quality and security. housing, but below average in education and
skills.

 A brief historical background of the country`s European integration

After the Second World War, Luxembourg abandoned its political neutrality and
implemented a new policy of international economic and military cooperation.
Back in September 1944, the governments of Luxembourg, Belgium and the
Netherlands signed in London a customs convention establishing the Benelux
Customs Union. On April 16, 1948, in Paris, Luxembourg signed the Convention
establishing the Organization for European Economic Cooperation (OECD),
uniting those Western European countries that receive US assistance in accordance
with the Marshall Plan.
In 1950, Luxemburg-born Robert Schumann, French Foreign Minister, proposed
combining the coal and steel resources of France and Germany into an
organization open to membership in other European countries. It was the creation
of the European Coal and Steel Community (ECSC) that became the real
beginning of the European integration process. On April 18, 1951, Luxembourg
finally signed the Treaty establishing the ECSK and reaffirmed its commitment to
the European integration process. The treaty entered into force on July 23, 1952.
Since the early days of European integration, Luxembourg has successfully strived
to play its full and proper role as a member in a Community that is constantly
evolving while maintaining its own national identity. The country has held the
presidency of the Council of the European Union ten times. In accordance with the
rotation system of the six-month presidency of the Council, he also served seven
times as President of the European Council. Despite the modest amount of
diplomatic and material resources available, the Luxembourg presidency has
always lived up to expectations.
Three European Councils held during a Luxembourg Presidency merit particular
attention: in December 1985, the Heads of State or Government of the Ten
concluded an agreement of principle on a reform of the Community institutions
that made possible the adoption of the Single European Act in February 1986; in
June 1991, the Draft Treaty on Union drawn up by the Luxembourg Presidency
served as the basis for negotiations which resulted in the Treaty of Maastricht; in
December 1997, the European Union reached agreement on its enlargement to
include the countries of Central and Eastern Europe. From 1 January to 30 June
2005, as it held the Presidency of the European Union of 25, Luxembourg found
itself once again the focus of European and international attention.

 The influence of European integration on country`s labour market

European integration has contributed to the following changes in the Luxembourg
labor market. The Statec Bureau of Statistics reported that 28% of the Grand
Duchy's workforce is foreign-resident, up 1% more than national workers. The
labor market in Luxembourg is heavily dependent on foreign nationals, with 45 out
of every 100 workers crossing the country's border every day.
By the way, overall employment in Luxembourg increased 1% quarter to quarter
and 3.9% year on year. This increase is due to job creation in the information and
communications technology sector, as well as an increase in demand for
specialized and ancillary services.
In terms of the total cross-border labor force in Luxembourg, around 100,299
people (23%) came from France, 46,000 came from Belgium and 45,787 from
Germany, representing 11% each. Among residents, the number of workers from
the European Union increased by 2.7%, while the number of non-Europeans
increased by 10.0%.
  Competitive advantages and disadvantages of each country`s EU
membership
Now we will talk about the main advantages and disadvantages of EU
membership. Let's start with the benefits:
1. Freedom of movement.
Citizens of all member states are free to move from one member country to
another. They can travel, study, work or live in any EU state of their choice.
2. Access to health benefits
EU citizens are provided with the EU Health Insurance Card that gives them access
to emergency healthcare whenever they need it, while visiting any Member States.
What is even better is that whatever rules that applies to locals will also apply to
the visiting citizen, effectively providing peace of mind.
3. Lower prices of goods and services.
Operating as a “single market”, there is a need to find an average price for all
products sold and exchanged within member countries. This resulted in lower
prices that are further reduced with the absence of custom tax. Usually, goods
transported or sold between states and countries are charged with custom tax, but
because the EU has an integrated economy, no such charges apply. Moreover, New
rules are implemented to protect consumers from car price cartels. This means cars
can be imported from EU countries with lower prices without being charged
exorbitantly.
4. Development of underdeveloped member regions.
Some states of the EU are economically deprived. In a bid to narrow the disparities
between developed and underdeveloped regions in Member States, the EU has
developed structural funds that come in two types. One is the European Regional
Development Fund designed to create infrastructure and support investment in job
production, and the European Social Fund that invests in training measures to help
unemployed and disadvantaged members of the population to enjoy a working life.
Next, list of disadvantages of the European Union:
1. High cost of membership.
Becoming a member of the EU does not come cheap. It is said that the cost per
head vary between £300 and £873, which explains why the UK government
spending reached a net worth of £6.883 billion, excluding regulation cost. Even
with its many benefits, Member States, and those planning to become a member,
have to seriously consider if the cost is worth it.
2. Problems with the policies
Operating as a single market and following common policies resulted in many
discrepancies. Regulations that were designed to protect smaller member countries
can affect larger countries, since the European Commission looks after the interests
of the entire EU and not the individual country. Wealthier countries are also
obliged to share their wealth with other member States, a good example of which
is Germany bailing out Greece.
3. Problems with the Single Currency.
Although EU doesn’t require all its members to convert to Euro, they placed
emphasis on it and insist on the use of the Single Currency. Unfortunately, the
Euro is causing problems all across the EU, including high unemployment rates,
slow economic growth, and unsuitable interest rates in the Eurozone area.
So, the European Union might be good for some of its members, but bad for
others. Unfortunately, an EU exit also comes with pros and cons, which calls for
strategic planning, regardless of which direction to take - better off out or in.

 Participation of the country in European common policies

Luxembourg occupies a central position in Europe. It is part of the Eurozone and
the Schengen area. Thus, it can become an ideal entry into a market of more than
500 million consumers, a platform for the free movement of goods, people and
capital.
By the way, Luxembourg maintains a special relationship with three of its
neighbors, two of which, Germany and France, are the largest European markets,
and the language of which Luxembourgers are fluent.
Luxembourg is located in the center of a cross-border area called "Big region", in
which since the 80s. is happening development of cooperation in various fields.
The "Greater Region" includes Luxembourg, the French Grand Est (or Greater
eastern region), German lands Saar and Rhineland Palatinate as well as Walloon
region Belgium. Luxembourg occupies the smallest area of all united lands, while
being in the very center of the region. The "Greater Region" has 11.5 million
inhabitants, 375,000 companies and 15 universities (data excluding the regions of
Alsace, Champagne, Ardennes). This is a zone of intensive exchange between the
various territories that make up it, this is especially true for jobs. This zone alone
accounts for 40% of border movements taking place in the EU, when more than
200,000 people cross every day border in order to take your workplace. 71% of
them come to Luxembourg from France, Germany and Belgium.

 Participation of the country in Euroregions

Luxembourg participates in two Euroregions, namely: Benelux and Saar-Lorraine-
Luxembourg - the Rhine Euroregion.
Benelux is a region of Europe created in 1944, which includes the European
countries of the customs and economic union: Belgium, the Netherlands and
Luxembourg. The Benelux Economic Union has become an important model for
the idea of a European Union. The work of the Governments of the Benelux
member countries is aimed at planning foreign trade, cooperation in the field of
monetary policy, finance, transport and tourism. Also, Benelux allows the free
movement of agricultural and other goods, labor and capital across the borders of
its members. The composition of the Benelux association is determined by its
geographical location. Therefore, other states will not be able to enter Benelux.
The founding members of the SaarLorlux region are the Grand Duchy of
Luxembourg, the Federal German State of Saarland and the French region of
Lorraine. This classic Saar Lor Lux region covers an area of 36,700 km² with a
population of around 4.7 million. There is no clearly defined structure for
SaarLorLux or even an exclusive definition of its size. Instead, there are many
forms of cooperation and contractual relationship between all or more of the
participants. The only partner with full power is Luxembourg, represented by the
Prime Minister. All other members who sit at the summit table have only limited
power. To make decisions, they must consult with their central or federal
governments in Brussels, Paris and Berlin. Many of the Summit's decisions are
nothing more than a declaration of goodwill by the participants.

 Participation of the country in the EU`s political institutions

The system of governing bodies of the European Union is built on institutions and
authorities. The EU institutions are the supreme bodies exercising the most
important and broadest powers of the EU. Currently, the institutions include: the
European Parliament, the European Commission, the Council, the Court of
Accounts, the Court, the European Central Bank and the European Council. Each
of these EU institutions fulfills its function by implementing the principle of
separation of powers in practice.
The European Quarter is an area in the northeastern part of Luxembourg City
where the institutions of the European Union are located. It is part of the Kirchberg
quarter. Luxembourg is home to one of the founding fathers of the EU, Robert
Schumann, who in 1950 put forward a plan to unite the industries of a number of
Western European states, which led to the emergence of the European
Communities (the predecessor of the EU). Luxembourg also hosted the first
meeting of the member countries of the European Coal and Steel Community,
chaired by Jean Monnet.
The EU institutions are located in Luxembourg, Brussels and Strasbourg. For the
European Quarter in Luxembourg, the Kirchberg district was chosen, where since
1952 have been located:
 Secretariat General of the European Parliament
 Part of the Directorate General of the European Commission
  European Court of Justice
 European Court of Auditors
 European investment bank
 Council of the European Union
The EU Publications Service is also located in the Luxembourg main station area.
In addition, In 2005, the Luxembourg Philharmonic opened in the European
Quarter.

 Euroscepticism in the country (parties and political leaders)

Euroscepticism is one of the forms of oppositional activity (skepticism), according
to which its supporters (Eurosceptics) focus on ideas, thoughts, actions aimed at
doubts, criticism, rejection and disappointment regarding either the entire
European Union, or its certain general policy, or the activities of a specific institute
and so on.
The Party of Alternative Democratic Reforms is a party of soft Eurosceptics in
Luxembourg. It is a member of the Alliance of European Conservatives and
Reformists. The party is a supporter of economic liberalism, taking a stand to fill
the void left by the Democratic Party. The party is critical of the extravagance of
the public sector and the "elitism" of public spending projects. ADR is socially
conservative.
The party differs from other parties in that it is a Eurosceptic, shares this position
only with the extreme left and is the most sovereign party in the country. The
leadership supported the proposed European constitution, endorsed it in the 2004
European elections, before changing its position in the spring of 2005 under
pressure from party members. In its criticism of the EU, the party emphasizes
democratic deficits and transparency. However, in the strongly pro-European
Luxembourg, the ADR has always fared worse in European elections than in
national elections held on the same day.

 Challenges and opportunities caused by European integration

Now we want to talk about the challenges and opportunities caused by European
integration.
Despite significant successes in the construction of a common European home,
both in the field of economic development and territorial expansion, since 2008 the
EU has regularly faced crises, each of which calls into question the legitimacy of
the very idea of European unification. The crisis processes are based on objectively
existing contradictions and problems of European integration:
 The problem of sovereignty and political leadership.
 The most profound and fundamental is the problem of the sovereignty of the
EU countries and political leadership within the union. Formally, all EU
countries sacrifice part of their own sovereignty in favor of supranational
bodies, primarily the European Commission. This provision allows the national
governments of the EU countries to "dump" responsibility for unpopular
measures and decisions on Brussels, as well as refer to it in foreign policy
negotiations. Moreover, individual countries can completely ignore the
decisions and agreements of the EU, which Great Britain demonstrated during
its stay in the union.
 The problem of solidarity and socio-economic imbalances.
The expansion and inclusion of new countries led to the fact that within the EU
there were serious socio-economic imbalances between countries. The
unjustified expectations and the desire of the central countries to impose their
own decisions on all EU members negatively affects solidarity within the union,
which was clearly manifested both during the period of active immigration,
when the peripheral countries refused to accommodate refugees on their
territory, or during the coronavirus pandemic, when Italy and Spain, found
themselves virtually without support from countries across the EU.
 The problem of common European security.
The lack of solidarity also affects the organization's ability to ensure pan-
European security. The coronavirus pandemic has highlighted the need to create
a common European health care system, which in turn implies the transfer of
state sovereignty to the supranational level. No less acute is the problem of
interaction between the internal bodies of the EU countries, which, in the
conditions of free movement of citizens within the Union, were unable to
effectively resist the terrorist threat in 2016-2017.
Fortunately, EU manages to find a way out of the current crisis situations and
preserve its integrity. The most likely response to new challenges will be
attempts to reform the EU in the direction of its federalization, strengthening
supranational institutions, transferring a wider range of issues to their
competence, which would bring the process of solving existing problems to a
new level.

 The experience of this country`s resistance to COVID-19 pandemic

The thoughts of all people in Europe and the world are now turned to the fight
against the outbreak of the coronavirus COVID-19 and the elimination of the
consequences of the crisis caused by it. The European Union is working on all
fronts to support these efforts. Luxembourg is no exception.
Luxembourg authorities maintain national and international travel restrictions from
4 March 2021 as part of efforts to contain the spread of COVID-19. Travelers from
countries within the European Union or Schengen Area, Andorra, Monaco, San
Marino, and Vatican City as well as residents of Australia, China, New Zealand,
Rwanda, Singapore, South Korea, and Thailand are permitted to enter
Luxembourg. Most travelers from other countries, including the UK, remain
prohibited, though exceptions are in place for essential work, study, and family
reasons. Individuals arriving from the UK in possession of a negative result from a
COVID-19 test taken within the previous 48-72 hours must take a further test on
arrival and self-isolate until the result has been confirmed. Moreover, as early as
December 30, 2020, vaccination against coronavirus began in Luxembourg.
A number of domestic restrictions also remain in place as of March 4. These
include the following:
 A nightly 23:00-06:00 curfew is in force, during which individuals may only
leave their homes for essential purposes.
 Nonessential businesses and entertainment venues are permitted to reopen,
provided they adhere to strict social distancing requirements.
 Individuals may only host up to two people from one other household
indoors.
 Public gatherings of over 100 people are prohibited.
 Restaurants, cafes, and bars are closed for dine-in services.
 Indoor sports facilities are closed.
 Facemasks are mandatory in enclosed public spaces, at gatherings of more
than four people, and in outdoor public spaces where social distancing of 2
meters (6.5 feet) is not possible.
Authorities could reimpose, extend, further ease, or otherwise amend any
restrictions with little-to-no notice depending on disease activity over the coming
weeks.