This small, stable, high-income developed country’s economy has steady growth, low inflation and low unemployment("The world factbook",2018). Luxembourg, the only Grand Duchy in the world, is located in the northwest of Europe, surrounded by Belgium, France and Germany inland(ibid.). Despite its small size and small population, Luxembourg is the second richest country in the world with a gross domestic product per capita (GDP). Luxembourg has one of the largest surpluses on the current account in the euro area as a percentage of GDP ("Luxembourg Country Profile", 2017), and has a strong fiscal position, the lowest national debt in the region.
Banking is the largest sector of the Luxembourg economy (OECD,2017). In the 2017 World Economic Centre Index, Luxembourg ranks 18th in the world and is the third place in Europe after London and Zurich. The state specialises in cross-border fund management. Given Luxembourg’s relatively small domestic market, its economic centre is basically international. As of the end of March 2009, Luxembourg has a total of 152 banks and employs more than 27,000 people. Political stability, good communication, easy access to other European centres, qualified multilingual staff, bank secrecy and cross-border financial expertise, contributed to the development of the financial industry. These factors contributed to the value of the Corruption Perception Index 8.3 and the 2012 DAW 10 Index. The latter is the highest in Europe. Germany's largest banking group is represented by Scandinavia, Japan's banks and major U.S. banks. As of the end of 2008, the capital exceeded 929 billion euros. Luxembourg has more than 9,000 holding companies. The European Investment Bank is also a financial institution of the European Union.
Concerned about the April 2009 bank's secrecy laws in Luxembourg and ad tax avoidance led to the fact that he was suspicious of the bank joining the G20 list setting "gray list" was repealed in 2009. This issue was caused Luxembourg to modify its tax legislation to Avoid clashes with European tax authorities in EU member states. For example, the traditional tax exemption of the holding company in 1929 was banned on December 31, 2010 because it was recognised by the European Commission as illegal.
A milestone in the history of Luxembourg's economy was the introduction of British metallurgical 1876 refining process, which promoted the development of steel production in Luxembourg. The Arbed Company was founded in 1911.
The steel industry located on the French border is an important sector of the economy. Steel accounted for 29% of total exports (excluding services), 1.8% of GDP, 22% of industrial employment, and 3.9% of the labor force.
The reorganisation of the sector with the increase in the shareholding of the country Arbedissa (31%) began in 1974 with a renewed demand for equipment, production and employment contracts, the issuance of ARBED public debt and the rec...