Introduction

This report provides a comprehensive analysis of Luxembourg's sovereignty using the methodology of the Burke Institute. Sovereignty is assessed in 7 areas: political, economic, technological, informational, cultural, cognitive and military. Each aspect is assessed on the basis of official data from international and national sources (UN, World Bank, UNESCO, IMF, ITU, FAO, SIPRI, PISA, etc.) without using politicized indexes. The maximum score in each direction is 100; the sum (up to 700) is the accumulated Sovereignty Index (Burke Index).

To adapt and adjust statistical parameters, an international expert survey was conducted for each of the seven components using a single questionnaire of 10 questions with a 10-point scale and one open-ended question.

In total, at least 100 experts from 50+ countries were interviewed for each indicator, taking into account geographical representation and specialization. When calculating and analyzing the data, equalizing coefficients were used, bringing all data to a scale of 0-10 points.

The final index value is the arithmetic mean between statistical data and expert estimates.

Below is an analysis in each area, a final summary table and the main conclusions about the peculiarities of Luxembourg's sovereignty.

Political sovereignty — 91.2

Luxembourg actively delegates some of its powers through the EU, NATO, the OECD, the Benelux, the Council of Europe, and the United Nations. In 2025, the country chairs the Benelux and the Committee of Ministers of the Council of Europe, participating in the formation of pan-European decisions and in the judicial structures of the EU.

National law is integrated into the system of EU law and the international legislation of the Council of Europe. The priority is the dominance of the norms of the European Court of Justice (ECJ) and the European Court of Human Rights (ECHR) over domestic acts. National legislation retains supremacy only in social and administrative matters.

The country demonstrates a complete consensus of the elites, a low level of political polarization and high trust in institutions. The changes of power are peaceful, and the parliament is stable. The WGI Government Effectiveness index = 1.91 (2023) is one of the best in Europe. This reflects the quality of public services, the independence of the State apparatus and the effectiveness of public administration.

According to the UN (2024) EGDI index = 0.8466 ("Very High” group), ranked 45th out of 193 countries. Digital governance is fully integrated: electronic services, AI coordination, cloud infrastructure, national Digital Sovereignty Strategy 2030. The level of public trust in the government is 56%, which is higher than the OECD average (39%).

The level of satisfaction with public services is 84%, the trajectory has been growing since 2023. There are temporary and small NATO facilities on the territory of the country related to air surveillance and communications, but there are no permanent foreign bases.

Luxembourg is an active participant in the judicial bodies of the EU and the Council of Europe: the jurisdiction of the European Court of Justice (in Luxembourg), the mandatory enforcement of ECHR decisions; the country advocates the rule of international law and the support of the tribunal on the Ukrainian conflict.

The system is moderately centralized: parliament and the government have basic powers; municipalities have limited autonomy in urban planning and the social sphere. The security services are monitored by a parliamentary commission and an independent ombudsman. Luxembourg complies with EU standards on data protection (GDPR) and internal control of intelligence agencies, ensuring transparency of oversight.

Data completeness assessment: the main indicators are available from international sources, coverage is 94%.

Economic sovereignty — 98.2

According to the IMF and the World Bank, GDP (PPP) per capita in 2025 is 150,000-173,000 international dollars. Luxembourg ranks 1st in the world in this indicator, ahead of Switzerland and Ireland.

The volume of gold and foreign exchange reserves is:

• gold — about 2.27 tons,

• Foreign exchange reserves — about 2.95 billion US dollars (September 2023, updated 2025 CEIC Data). The main holder is Banque centrale du Luxembourg. The national debt in 2025 is at the level of about 21-26% of GDP.

This is one of the lowest rates in the European Union; the country has a significant fiscal reserve and budget surplus. Luxembourg ensures a high level of food security due to high incomes and integration with the agricultural markets of Belgium, France and Germany. The risk level of food crises is zero according to the FAO and the Global Food Security Index.

The country is dependent on imports of oil, gas and electricity (about 95% of energy consumption). However, the share of renewable sources is growing — about 15%, and by 2030 it is planned to reach 25% of renewable energy sources. Imports come from Belgium, Germany and France, through the EU's common energy networks.

There are practically no natural resources of our own. Construction materials, chalk, dolomites, insignificant in volume, have been explored. The main revenues of the state are financial and digital services, not the raw materials sector.

Fresh water resources are sufficient — about 1.1 billion m3 per year, the water supply to the population is stable and regulated by EU standards. The water supply is municipal and centralized. The country is integrated into SEPA, SWIFT and uses its own solutions certified by the European Central Bank. In addition to international systems, LuxTrust and Luxhub, platforms for digital payments and authorization, operate.

The national currency is the euro (EUR), the share in the calculations is 100%. There is no independent currency issue, and monetary policy is entirely determined by the European Central Bank (ECB). The issue and credit policy is provided by the European Central Bank (Frankfurt am Main). Banque centrale du Luxembourg (BCL) performs supervision, depository and analytical functions, but does not determine key interest rates or money supply.

Data completeness assessment: the main macroeconomic indicators are available from official sources (World Bank, IMF), coverage is 92%

Technological sovereignty — 75

R&D expenses (% of GDP) In 2023-2025, expenditures amount to about 1.0% of GDP, which is lower than the EU average (2.2%). The main source of funding is private companies and the Foundation for National Research (FNR). Luxembourg is not focused on import substitution, but on international specialization. High technologies are based on fintech, artificial intelligence, cybersecurity, satellite communications, while the component base and electronics are imported mainly from Germany, France and Belgium.

According to Eurostat and OECD, the proportion of citizens with higher education is about 54% (aged 25-34 years). The University of Luxembourg and numerous international educational programs operate in the country. By January 2025, Internet penetration is 98.9% of the population, one of the highest in the world.

The average speed of a fixed connection is 161.4 Mbit/s, and a mobile connection is 134.1 Mbit/s.

Main platforms:

• MyGuichet.lu — the state portal of online services (more than 250 administrative procedures, ~3.2 million operations per year).

• LuxTrust is a national electronic identification and digital signature system.

• GovCloud is a national highly secure cloud for government agencies. All systems are included in the Electronic Governance strategy 2021-2025.

Import dependence persists in the field of hardware, microprocessors, industrial robotics and biotechnological equipment, as most of these systems are purchased from the EU and the USA. Luxembourg is one of the EU's digital leaders: 100% of public services are available online, electronic identity cards, electronic signatures, integration of AI services are in effect, and the "paperless state" concept has been fully implemented.

The biotechnology sector is developing in medical science parks (Luxembourg Institute of Health, LCSB), but the production of equipment and reagents is imported. Internal autonomy is rated as average, based on cooperation with Belgium and the Netherlands. The robotics industry is limited by automated solutions for logistics, transportation, and manufacturing. The main technologies are imported (Germany, France).

The autonomy is low, but with rapidly growing investments. The country does not have its own production of microchips. Participation in the EU supply chain is carried out through EU Chips Act programs, university research centers and private companies. The level of technological dependence is high.

Data completeness assessment: key indicators are obtained from WIPO, ITU, UNESCO, which provides 93% coverage.

Information sovereignty — 79.5

Luxembourg has a national CERT (Computer Emergency Response Team – GOVCERT.LU) and the National Information Systems Security Agency (ANSSI). The cybersecurity strategy is implemented through the High Commission for National Protection (HCPN).

The ITU Global Cybersecurity Index 2024-2025 ranks the country among the top twenty countries in the world. He also participates in the EU Cyber Competence Center (NC3) program. The key Internet exchange point is LU-CIX (Luxembourg Internet Exchange), operated by LuxConnect.

It unites networks of national providers and international players (Google, Akamai, Cloudflare). LU CIX centers are located in Bettembourg and Bissen, connecting more than 70 autonomous systems and providing bandwidth of up to 8 Tbit/s. The national language is Luxembourgish (Lëtzebuergesch).

The media is produced in several languages: RTL Télé Lëtzebuerg, RTL Radio Lëtzebuerg and the portal rtl.lu They broadcast in Luxembourgish, while much of the content is also available in German and French. The press is multilingual: Luxemburger Wort, Tageblatt, d'lëtzebuerger Land, Le Quotidien.

The government's digital sovereignty policy is actively developing in the country. Large public cloud services (GovCloud) are deployed under government control, and local infrastructure is used for critical data. Regulation of BigTech's access to data has been increased in accordance with the requirements of the GDPR and the Digital Markets Act.

It is estimated that about 65-70% of the media content on the air and online is created by national media (RTL, magazines, news agencies), the rest is international content (France, Germany, Belgium).

Luxembourg develops its own solutions in the fields of fintech, cybersecurity, document management, digital signatures (LuxTrust), identification, e banking, e sign cloud. IT developments are represented by Luxinnovation, LuxProvide (HPC MeluXina) and Telindus. Coverage is more than 98% of the population, including portals MyGuichet.lu and Guichet.lu, electronic identity card, digital signature, e-tax platform and public services through a single API portal.

GovCloud Luxembourg is functioning, designed for government agencies and mission-critical systems. Managed by CTIE (Centre des technologies de l'information de l'état), it provides "European Secured Cloud" class data storage. Mobile operators are POST Luxembourg, Orange Luxembourg and Tango. All operate under national licenses and are controlled by the Institute of ICT and Postal Services (ILR). The communication infrastructure belongs to local operators, without external control.

The legislation fully complies with the EU GDPR, and the National Data Protection Commission (CNPD) operates. Luxembourg is considered one of the most protected EU countries in terms of legal protection of personal data. The control of intelligence services and electronic communications is carried out exclusively under judicial supervision.

Data completeness assessment: infrastructure indicators are available from ITU, CIRA, OECD and specialized sources, coverage is 94%.

Cultural sovereignty — 85.6

Luxembourg has 1 World Heritage Site — Luxembourg's Old Town and its fortifications (since 1994). In addition, the country has additional UNESCO recognition statuses: the Mallerdall UNESCO Global Geopark, the Minett Biosphere Biosphere Reserve, The Family of Man photo collection (Memory of the World program).

In total, there are four recognized UNESCO sites and programs. Luxembourg is recognized for its contribution to the preservation of European fortification architecture, the development of international photo culture (The Family of Man) and contemporary art (Luxembourg Art Week, Esch2022).

Per capita, the country is one of the EU's largest cultural investors in terms of cultural spending (about 1.5% of GDP). Major cultural awards: Prix GrandDuc Adolphe (awarded since the beginning of the 20th century), Prix Pierre Werner, Prix Révélation, Lëtzebuerger Konschtpräis (State Prize in Art, established in 2022), Luxembourg Art Prize — the international prize of the Pinacothèque Gallery, State Orders of Merite and Oak Crown for cultural figures.

National identity is based on multilingualism (Luxembourgish, French, German), Christian traditions, the feast of the Trinity (Emaischen) and the Day of the Grand Dukes. The key element is folklore and street festivals (Schueberfouer, Wine Festivals, Echternach Spring Process are on the UNESCO Intangible Heritage List).

There are no indigenous small nations in the country, but there is an active cultural policy for migrants — language courses and ethnocultural holidays are funded from the budget of the Ministry of Culture (through Integration- und Diversitéfonds). About 70 major cultural institutions: the National Museum of History and Art, the Grand Duke Jean Museum of Modern Art (MUDAM), the Luxembourg Theater, the Esch-Belval Center, the BDNL Library.

Yet, there are hundreds of small galleries and a philharmonic hall. Luxembourg actively participates in the EU programs Creative Europe, Erasmus+ Culture, is a member of the European Film Promotion, hosts Luxembourg Art Week, Short Film Festival, European Capital of Culture (Esch2022). UNESCO projects include World Heritage Accessible Tourism and international museum cooperation.

National brands: MUDAM as a contemporary art center, The Family of Man photo collection, Luxembourg Old Town (UNESCO brand), Rainy Days music festival. All objects are legally protected as national cultural property. The cuisine combines French, German and Belgian traditions: Judd mat Gaardebounen, Gromperekichelcher, Kniddelen dishes.

Highly developed wine culture (Moselle Valley). Luxembourg is recognized in the catalogs of the European gastronomy EIT Food. According to the ILRES survey (2025): 82% of residents consider culture to be an important part of life, while 34% consider it extremely important.

Most attend museums and concerts on a monthly basis; the male participation rate is 77.5%, one of the highest in the EU.

Data completeness assessment: basic indicators are available in UNESCO and national statistics, coverage is 97%.

Cognitive sovereignty — 84.9

The HDI value for 2023-2025 is 0.922 (the maximum was 0.927 in 2022). Luxembourg is consistently ranked among the top 20 most developed countries in the world. Total government spending — 4.7% of GDP (2022, latest data from the World Bank) — is one of the EU's highest per capita spending figures. The official adult literacy rate is 100%.

All residents have access to education, and compulsory schooling lasts for 12 years.

Luxembourg did not participate in PISA 2022, but was a participant in all previous rounds; in 2018, the average student scores:

• Reading: 470

• Mathematics: 482

• Sciences: 483 The results are slightly below the OECD average, but among multilingual countries they are among the best.

In 2025, the country participates in PISA again. According to Eurostat and OECD, the share of STEM graduates is approximately 25-27% of all graduates of higher education institutions; IT, engineering, and applied technologies dominate.

The University of Luxembourg and private schools have a significant proportion of English, French, and German-language programs, joint degrees with EU universities, and branches of foreign universities.

The participation of international students in Luxembourg universities is 31%, and up to half of the students study under the Erasmus+ and double—degree programs. Luxembourgish, German and French have equal rights in education and media.

There are no indigenous small nations, but dozens of ethnic communities live in the country (Portuguese, Italians, French, Serbo-Croats, Chinese, British); integration and cultural programs are open to everyone.

There are 6 major national research institutes in the country:

• Luxembourg Institute of Science and Technology (LIST),

• Luxembourg Institute of Health (LIH),

• Luxembourg Institute of Socio-Economic Research (LISER),

• University of Luxembourg Research Units (SnT, LCSB, et al).

More than 50% of educational digital platforms and distance learning systems are of national development (MyGuichet.lu Education, Eduguichet, SCRIPT, Moodle@UniLu), the main IT infrastructure belongs to the state.

There are multi-level support programs for gifted students (FNR Awards, scholarships, Fonds National de la Recherche, Erasmus+), Research Grand Ducal Awards, and numerous grants, internships, and entrepreneurial accelerators.

The state annually finances the participation of students and young scientists in international Olympiads, competitions, and double degree programs.

Data completeness assessment: education indicators are available in the UNDP, UNESCO, OECD, coverage is 90%.

Military sovereignty — 44.1

The country is striving to achieve the NATO target of 2% of GDP, with a defense budget of 1.18 billion euros (~2% of GNI) in 2025. In previous years, expenditures were about 0.83% of GDP (2024).

The number of military personnel is ~900 professional soldiers + 200 civilian employees (total 1,100). There are no reservists or conscription army.

Weapons are being updated to meet NATO standards:

• Humvee armored vehicles,

• NLAW and TOW anti-tank systems,

• 81 mm mortars,

• Unmanned/thrush systems and GovSat 1/2 (communication satellites). The national defense industry is practically non-existent, 99% of weapons are imported (USA, France, Germany, Belgium).

New projects on defense IT solutions and cybersecurity are being implemented. The borders are controlled by the police and border guard forces with the support of the European Schengen system, the army can be involved in critical tasks; the airspace is controlled jointly with NATO.

There is no formal reserve. All forces are professional, from contractors; during emergencies, the support of NATO, Belgium, and Germany is used. The country is a geostrategically dependent member of NATO and the European Union.

All defense decisions are made taking into account the general doctrines of the alliance, and autonomy is limited by obligations to the allies. The defense sector focuses on cybersecurity, satellite technologies (GovSat 2), R&D and IT infrastructure; there is no production capacity for classical weapons. The country does not possess nuclear weapons, and it does not have its own warheads.

Luxembourg supports NATO's nuclear deterrence policy, but does not deploy or own nuclear assets. Nuclear doctrines are implemented within the framework of the alliance, the country does not participate in the TPNW (Treaty on the Prohibition of nuclear weapons).

There are no intelligence assets of its own — the country is investing in GovSat satellite projects, and GovSat 2 (without espionage functions) is being launched in 2025.

Communications are in the interests of NATO, and general military intelligence is delegated to the structures of the alliance. All parameters are reflected in the annual reports of SIPRI, UNODA, the Ministry of Defense, the official portals of state-owned companies (Embraer, IMBEL) and industry databases of UN/NGO – 96% coverage

Final Summary Table

The main conclusions

Strengths. 1. Economic and financial strength Luxembourg ranks first in the world in terms of GDP (PPP) per capita (over $150,000), has minimal public debt (about 25% of GDP) and a stable budget surplus.

The financial sector, logistics and the space industry ensure global integration and long-term economic security. 2. The highest standard of living and human capital HDI = 0.922, literacy is 100%, education and healthcare are funded at 4.7% of GDP.

Life expectancy is 83 years. Education is multilingual, combining national and international standards. 3. Digital and cyber resilience Luxembourg is in the TOP 15 in digital government (EGDI = 0.85) and is one of the cybersecurity countries in Europe, with a national CERT, GovCloud, and LU CIX IX center.

Electronic services cover almost 100% of the population.

Political stability and managerial effectiveness The Government Effectiveness Index (World Bank) is 1.91, there are no internal conflicts, the government system is transparent, and corruption is minimal. Luxembourg consistently ranks in the top category of the Corruption Perception Index .

Cultural saturation and social engagement 82% of the population actively participates in cultural life; there are 70+ museums and art centers, 4 UNESCO sites. Strong traditions of cultural diversity, multilingualism (Luxembourgish, French, German) are part of the national identity.

Innovation and scientific infrastructure Six government research centers (LIST, LIH, LISER), focusing on AI, biotechnology, and financial technologies. Grants and accelerators (Fit 4 Start, FNR) support entrepreneurial startups.

Security and defense through international structures A member of NATO and the EU; the defense burden has been increased to 2% of GDP, the army is professional (~900 people), modernization is carried out in cooperation with the alliance. Focus on satellite and cyber defense (GovSat 2, NATO IT modules).

Weaknesses. 1. Lack of strategic autonomy in defense: the armed forces are small, there are no defense factories of their own and no reservists. National security depends on NATO and EU partners.

Energy and food addiction: the country imports over 95% of its energy resources and some of its food, which limits its natural sovereignty and creates external vulnerabilities in times of crisis.

High cost of living and taxation Housing, utilities, and groceries are more expensive than in neighboring countries; business taxes reach 25%, and the income rate is up to 42%.

Limited territorial capacity and dependence on foreign markets: the small size of the state limits demographic and industrial potential; most of the economy is focused on external demand and capital flows.

The lack of its own currency and monetary policy Financial and economic stability is determined by the decisions of the European Central Bank, as Luxembourg uses the euro and does not have a sovereign issuing center.

Technological dependence in the hardware and bioindustries Microelectronics, chips, laboratory equipment, and robotics are all imported; limited production capacity constrains deep technological autonomy.

Overall assessment. Luxembourg's cumulative sovereignty index is 558.5 out of 700 points (Above average 79.8%), which places the country in the top 50 in the global top.

Luxembourg is an example of a macro-sustainable, digitally integrated and socially perfect state, where the strengths — human capital, innovation, and financial autonomy — outweigh the infrastructural disadvantages.

The sovereignty profile indicates that the country has high "soft" sovereignty (governance, education, culture, technology) with moderate restrictions on "hard" sovereignty (defense, energy, monetary independence).

This makes Luxembourg one of the most stable and balanced European countries in the model of a "micro-sovereign state of the 21st century."