Luxembourg - Geography and history The country covers 2 586 km2 and it has 356 km of borders: 148 km with Belgium (provinces of Luxembourg and Liège), 135 km with Germany (Rhineland-Palatinate and Saarland), and 73 km with France (the Moselle and Meurthe-et-Moselle départements). There are two natural regions: the 'Oesling' in the north is mainly formed from Devonian schistose rock and is very hilly (average height around 450 m). It is a continuation of the Ardennes, covering around one-third of the area of Luxembourg. In the south of the country is the 'Gutland' which has undulating plains consisting mainly of sandy and calcareous Triassic formations with a narrow band of Dogger iron ore in the southwest, which was mined until the end of 1981. One-third of the country is covered by forest, and half of the land is used for agricultural purposes, including around 1% for wine growing. Luxembourg has a sub-Atlantic climate, which tends to be damp and cool. The annual average temperature is around 9 °C. The national language is Luxembourgish. All legislation and the implementing regulations are drawn up in French and the administrative and judicial languages are French, German or Luxembourgish. Social consensus - a trump card of the mini-State The Luxembourg economy is largely open to the outside. Being a small nation with a high standard of living, it can only produce a minuscule part of what it requires and, since its production is by necessity fairly specialized, it needs to sell most of the goods and services it produces abroad. Since the country is vulnerable to any economic or structural crises, which may develop abroad, the appropriate counter-measures need to be taken quickly. The close links, which exist between the inhabitants of a small nation, make it easier to find solutions on the basis of a national consensus. In 1977 the "tripartite" consultation procedure, bringing together representatives of employers, labour and public authorities, was institutionalised. The "tripartite" system rapidly developed from an effective crisis management tool into a consultation mechanism that systematically seeks consensual solutions for economic and social problems. The economic development of Luxembourg over the last 25 years has been marked by a rapid change in the economic structure, with the focus shifting from the secondary to the services sector, and the attempts made to diversify the manufacturing structure. Meanwhile, the unemployment rate has been remarkably low. One key to this success has been social consensus, an eye for opportunities resulting from various developments outside the country, and the considerable use of foreign labour. In view of the changes resulting from the completion of the single Community market and the inherently fragile nature of the economy of a small nation, close cooperation with the bordering regions in Belgium, Germany and France will be more essential than ever for working out a common development policy. Population concentrated in the centre and the south-west During the last 120 years, the country has seen major shifts in settlement patterns. As the iron and steel industry grew, the population moved towards the south of the country, which remained the centre for economic activity until the middle of the twentieth century. The extension of the capital's role as a European and financial centre from 1970 onwards led to the development of an important new centre of economic activity. The municipalities on the outskirts of the capital have become dormitory suburbs as the population density in the canton of Luxembourg-campagne (surrounding area of the city of Luxembourg) increased from 190 at the beginning of the 1980s to 260 inhabitants per km2 in 2003. The other regions of the country are less densely populated, and in the cantons in the extreme north and northwest there are just over 40 inhabitants per km2. The overall density in the Grand Duchy of Luxembourg has risen from 140 to more than 170 inhabitants per km2 in 20 years. National and regional industrial zones have been established in an effort to develop a more effective land-use policy and to help consolidate the economic structure. Given the lop-sided development of the country, an aid scheme for specific development areas has been introduced by law, and this focuses on both industrial and services activities. The law of 1999 on regional development planning and the regional development programme established new planning instruments that promote a regional approach (regional and sectoral development plans and land use plans) and adhere to the concept of sustainable development. Together with the neighbouring countries, Luxembourg is also seeking to work out common policies for the development of the border regions. Text finalised in March 2004.