The Grand Duchy of Luxembourg, nestled between Belgium, France and Germany, is one of the smallest countries in Europe. It has built a strong economy and has the highest per capita income in the European Union. The economy was formerly built on the iron and steel industries, but it has diversified and become an international finance, insurance and communications centre. Luxembourg was one of the founding members of the EU and remains one of its strongest supporters. Several of the administrative organisations of the EU are located in Luxembourg.

Banking has supplanted steel as the single biggest sector of the economy. Thanks to its liberal banking laws and an extensive range of taxation treaties, Luxembourg offers a wide range of financial services that have proved particularly attractive to global corporations and collective investment funds.