Introduction

Luxembourg is a unitary State with a municipal level of decentralisation under the 1868 Constitution.

It is a constitutional monarchy that gained independence in 1839 and a parliamentary democracy characterised by a flexible separation of powers. The Parliament (Chambre des députés) is unicameral. The Government is led by the Prime Minister and the Grand Duke is the Head of State.

Until 2015, Luxembourg was made up of 3 Districts[1], 12 Cantons[2] and 105 Municipalities[3] (Communes). The Districts (Luxembourg, Diekirch and Grevenmacher) and Cantons existed for territorial and administrative purposes only rather than being separate levels of government. While  districts were a deconcentrated levels of State administration; the 12 Cantons represent territorial units and have no administrative competencies. , Presently, the 105 municipalities that have existed since the 1789 French Revolution, liaise directly with the central government in the administrative aspects of implementing national policy.  

The right to local self-government is enshrined in the Constitution (Art. 107), where municipalities are considered to be legal entities managing their own bodies, heritage and interests. Municipalities have general competence for all matters concerning municipal interests, but have only administrative competences[4]. Municipal competences are divided into mandatory and optional. Mayors represent both the State and their Municipalities.

The Grand Duke appointed a District Commissioner in each District[5]. They previously acted as state officials responsible to the Home Minister and to the Government in general, and served as contact points between the central Government and local administrations. However, as District Commissioners previously acted as the coordinating points between Central Government and the Municipalities, the latter now liaise directly with the central government. Most of the decisions taken by the Municipalities are subject to the approval of the Grand Duke or the Government.

Besides the Constitution of 1868 – which gives scarce indication of the Municipalities' competences, the Municipal organisation Act (loi communale) of 1988 constitutes a fundamental law as regards the division of powers between the State and the Municipalities.

The Municipalities' revenue is derived from autonomous taxation (33.8%), grants (44.3%), and other sources of revenues (21.9%)[6].

Central level

State responsibilities

The central government has exclusive legislative power in all fields related to the national interest. Moreover, it has general legislative and administrative powers, except for local powers specifically defined by the law.

Regional level

No intermediate-level responsibilities

• District Commissioners ensured compliance with laws and general and municipal regulation, the maintenance of order, public safety and keeping of the peace.

Local level

Municipal-level responsibilities

The mandatory functions of the municipalities include:

• Organisation and operation of the Municipality;
• Registration (registry office);
• Education, including buildings, school organisation, but not the curricula and pedagogical matters, pre-school and primary education;
• Transport, including municipal road network; traffic management;
• Local planning and housing;
• Environment, including water supply and waste management;
• Emergency services;
• Public safety (police matters, jointly with the State);
• Health, including public hygiene and health;
• Social welfare, and
• Waste management.

Also, municipalities have the authority to carry out the following optional functions:

• Public transport;
• Public health, including the management of clinics and hospitals, care homes;
• Social welfare, including crèches, child reception facilities, welfare activities, care of the elderly;
• Sporting activities;
• Music education;
• Economic development, including the creation of industrial, commercial and craft areas;
• Tourism, and
• Cultural affairs.

[1] Loi communale du 13 décembre 1988 [Municipal Act of 13 December 1988] updated on 29.07.2011 (Mém. A – 64 of 13 December 1988 p. 1222, Doc. parl. 2675), Article 109.

[2] Ibid., Article 109.

[3] Luxembourg portal, Municipalities.  

[4] Loi communale du 13 décembre 1988, op. cit.

[5] Ibid., Article 110.

[6] Assembly of European Regions (AER), Regionalisation in Luxembourg: municipalities reign, but are merging, 2017.