An introduction to Luxembourg's political system

If you've been reading RTL Today for any length of time, you'll have no doubt seen lots of stories about the government, the Chamber of Deputies and new laws under development in the country. But have you ever wondered how the political system works and how the different components fit together to govern Luxembourg? If so, we've put together this guide to explain the key things you need to know.

The Constitution 

Luxembourg's current Constitution was implemented on 17 October 1868 and has been revised several times since then, most recently in 2023. It is the supreme legal text of the country, outlining fundamental rights, as well as setting out the function and power of key institutions.

Head of State

The Grand Duke is the Head of State and, under the Constitution, holds executive power jointly with the government. In practice, however, it is the government which exercises executive power, under the leadership of the Prime Minister. The text of the Constitution grants the Grand Duke broad prerogative powers, though these are largely exercised in line with established practices and on the advice of government.

For example, he has the freedom to choose which ministers serve in the Government, however, according to custom, he only selects the Prime Minister. Another example is his ability to dissolve the Chamber and call elections, however, he does so usually at the request of the Government.

Although his role is largely ceremonial, as Head of State, he represents the country abroad at certain functions, signs treaties, formally enacts laws, and carries out the necessary actions for the enforcement of laws and treaties.

National elections

Luxembourg is a parliamentary democracy, with national elections held every five years to elect 60 members to the Chamber of Deputies. The electoral system uses proportional representation to ensure that political parties are allocated the number of seats corresponding to the percentage of votes won.

For national elections, Luxembourg is divided into four electoral constituencies, each electing a number of deputies proportional to its population size: Centre (21 deputies), East (seven deputies), North (nine deputies) and South (23 deputies).

An unusual feature of Luxembourg's voting system is that individuals get as many votes as there are seats in their constituency. For example, a person living in the centre constituency has up to 21 votes to distribute on their ballot. This can be distributed to individuals (including across party lists) or allocated to the list of a single party. Additionally, they can give candidates up to two votes.

Forming a government

Since the proportional representation system rarely allows for a single political party to secure an outright majority, coalition-building between political parties is essential to form a government. Since 1945, the Christian Social People's Party (CSV) has been the largest party at every election, and has only been out of government three times (in 1974, 2013 and 2018).

The day after the election, the government resigns, although it remains in a caretaker role, until the next government is appointed. The Grand Duke also meets with the speaker of the Chamber of Deputies, the president of the Council of State and the heads of all the elected political parties.

The Grand Duke then appoints a 'formateur' (a prospective prime minister or government negotiator), who is given a mandate to assemble and propose a government that can secure a parliamentary majority - this is usually, but not always, an individual from the largest party. A formateur is named when the shape of a government is clear, either immediately following an election or after consultations conducted by an 'informateur' (preliminary negotiator).

Where the situation is less clear, the Grand Duke may appoint an informateur (a non-political figure, such as a judge or public prosecutor). This individual engages with party leaders, before submitting a report to the Grand Duke, who then appoints a formateur.

Most recently, in October 2023, Prime Minister Luc Frieden was appointed as formateur following the elections, without the Grand Duke having appointed an informateur. In 2013 and 2018, Xavier Bettel was appointed as formateur, however, on both occasions, the Grand Duke appointed an informateur.

Government

The government sets the political direction, managing the country's finances, implementing policies and amending laws in line with its agenda. The government is led by the Prime Minister and his team of appointed ministers (with positions usually negotiated as part of the coalition talks). Ministers come from senior figures of the coalition parties in the Chamber of Deputies, however, it is technically possible to appoint others (though it is unusual to do so).

Ministers must be of Luxembourg nationality and must not simultaneously hold other positions, including Member of the Chamber of Deputies, State Councillor, Member of a Municipal Council, public office or other professional activity.

The Chamber of Deputies holds the government to account through mechanisms such as parliamentary questions and committee scrutiny. In cases where it believes the government is unfit to continue, it may hold a vote of no confidence.

Legislative process

Laws may be initiated either by the Chamber of Deputies, the government, or the electorate, through a parliamentary bill ("proposition de loi"), a government bill ("projet de loi") or a reasoned proposal for legislation ("proposition motivée aux fins de légiférer"), respectively. The legislative process consists of several stages:

1. Proposal stage: The process begins with the draft proposal, most commonly introduced by the government or deputies.
2. First reading: Typically a formal presentation of the bill, with no detailed debate.
3. Committee review: The relevant parliamentary committee examines the bill in detail. Experts, stakeholders and government representatives may be invited to provide input. Amendments to the bill can be proposed during this stage.
4. Second reading: The bill returns to the Chamber for a second reading, during which the bill is debated in detail. Additional amendments can be proposed and voted on.
5. Final approval: If the bill passes the second reading, it goes to the third reading, which is usually a final review before voting. If the Chamber approves the bill, it is sent to the Grand Duke for royal assent.
6. Promulgation: Once the Grand Duke formally approves the bill (through an automatic process), it is published in the Official Journal of Luxembourg and becomes law. 

Interestingly, whilst all laws, including statutes, regulations, and legal documents, are drafted and published in French, the debates and discussions throughout the process usually take place in Luxembourgish (although French or German can also be used)!

Council of State

The Council of State is an advisory body that plays an important role in Luxembourg's legislative process. It is made up of 21 councillors, at least 11 of whom must hold a higher education degree in law.

To be appointed as a member of the Council of State, one must be a Luxembourg national, enjoy civil and political rights, reside in the Grand Duchy and be over 30 years of age. State Councillors are appointed by the Grand Duke on recommendation and serve a 12-year mandate. Appointments to the Council are made with consideration for the political balance of parties represented in the Chamber.

After a draft law is proposed, it is sent to the Council of State for an opinion. The Council examines the bill in detail, focusing on its legality, constitutionality, and compliance with Luxembourg's international obligations. It also evaluates whether the bill respects fundamental rights and legal norms. Whilst the opinions are purely advisory, the opinions of the Council carry significant weight in the process.

To balance Luxembourg's unicameral system, the Constitution gives the Council of State a right of suspensive veto for legislative matters, however, the Chamber can override this.