Luxembourg is a hereditary constitutional monarchy. In 1921 it signed a joint customs and trading agreement with Belgium (UEBL), which was then extended to the Netherlands (Benelux). In 1957, it was one of the founder members of the EEC. According to the Constitution of 17 October 1868, which has been revised many times, the Grand Duke holds executive power, which he delegates to the Government. He is responsible to the Chamber of Deputies (60 members who are elected directly for five years by direct suffrage), which exerts legislative power.
Luxembourg has a voluntary army (about 450 strong) and a police corps (about 1900 strong).

Population by age and gender (% - 2020)
	75+ 60-74 45-59 30-44 15-29 0-14
MALE	AGE	FEMALE

More than 45% of the population is foreign.

GDP fell slightly in 2020 (-1.3%). The economy should return to grow considerably in 2021 (+ 3.9%).
The main agricultural crops are cereals (wheat and barley). Other commonly grown crops are potatoes and grapevines (along the River Moselle). Livestock farming is highly specialized (especially cattle and pigs). Forests cover about one third of the land. The iron and steel industry has been downsized on a vast scale, although the production of high-quality steel is still significant. Luxembourg’s main imports are energy minerals, transport vehicles, metals and machinery; it exports, metals, machinery and plastic materials and rubber. The financial sector drives the economy, which could benefit from the effects of Brexit through the influx of new businesses. There is a high concentration of lending institutions and investment banks, who are attracted to the country by legislation regarding secrecy and banking. The Luxembourg stock exchange plays a key role in the trading of Eurobonds. Due to its fiscal legislation, which is beneficial to foreign capital and companies, the country is controlled by the EU and the OECD. The European Commission continues to apply pressure for measures to combat money laundering and tax evasion. On 31 July 2021, the Luxembourg data protection authority (CNPD) fined Amazon for 746 million euros for not complying with the EU General Data Protection Regulation.