The Werner-Thorn Government was the government of Luxembourg between 16 July 1979 and 20 July 1984.
80-524: It was a coalition between the Christian Social People's Party (CSV), and the Democratic Party . It came about after the 1979 general election . The CSV emerged the winner of the election of 10 June 1979. It increased its number of Deputies from 18 to 24. The Democratic Party managed to resist the weakening of power, and even gained one seat, reaching a total of 15 Deputies. The parties of
160-520: A fait accompli , and were only able to bring about a reduction of the percentage of the devaluation. At one point, the Luxembourgish government contemplated withdrawing from the monetary union. Pierre Werner asked Jelle Zylstra, the former governor of the Nederlandse Bank , to study the viability of a purely national monetary system. Unlike Hjalmar Schacht , who was consulted on the same question in
240-767: A German civil administration headed by Gauleiter Gustav Simon was established in July 1940. It had two main goals: to turn the Luxembourgers' minds towards Deutschtum , and to bring the steel industry under German control. Immediately after the occupation, two high-level functionaries were sent to the country. These were Otto Steinbrinck , "Commissioner-General for the Belgo-Luxembourg Iron-Producing Industry" and Paul Raabe, "Commissioner-General for Iron Ore Exploitation and Distribution for Lorraine and Luxembourg". In June 1940, Steinbrinck called together
320-545: A Tripartite agreement was reached, stipulating that ARBED would invest 23.2 billion francs by 1983 to modernise its factories. The unions accepted that worker numbers would be reduced to 16,500, and the Luxembourg government granted ARBED a loan of 3.2 billion francs, over 10 years. The production facilities that were not profitable and not worth modernising, were closed. Additionally, synergy agreements were made with other steel producers: instead of everyone doing everything across
400-595: A break, heavy industry was still dependent on foreign labour. During the economic crisis after 1929, employers tended to lay off foreign workers first, meaning that by 1939 their proportion of the steel workforce had sunk to 20%. With the sale of German companies after World War I, the proportion of Luxembourgish managers in the steel industry also increased. ARBED traditionally favoured them, while Hadir preferred to have Frenchmen in positions of management. After Luxembourg had been invaded in May 1940 and occupied by German troops,
480-766: A complaint at the European Court of Justice , where it prevailed. The government's diplomatic action was aimed at making the heads of government aware of the question of the work places of the Communities. On 23 and 24 March 1981, the European Council meeting in Maastricht decided to maintain the status quo with regards to the Communities' working locations. From the 1980s, development aid gradually became an important component of Luxembourg's foreign policy. The law of 13 July 1982 on overseas development aid officially inaugurated
560-556: A delegate was sent from Germany to oversee Meyer's work; the share ownership of ARBED, which had mostly belonged to the Société générale de Belgique , was much changed; and the executive board included nine Germans and six Luxembourgers (compared to the pre-war 15 Luxembourgers and two Belgians). It was, however, intended from the outset that when Germany had won the war, ARBED and the Rodange foundry would also pass into German ownership. Concerning
640-523: A governmental coalition. Despite remaining the largest party, the result of the 2018 general election represented the lowest public support in the party's history. + Died in office [REDACTED] Media related to Chrëschtlech Sozial Vollekspartei at Wikimedia Commons Steel industry in Luxembourg In the industrial sector, the Luxembourg steel industry continues to occupy the first place in
720-447: A law passed in 1870, the state became the owner of all minette reserves down to a certain depth. In 1880, another law was passed, which tied new concessions to mine minette under the condition that it had to be processed in Luxembourg. This enabled certain Luxembourg families to play a key role in the furnaces. The brothers Charles , Norbert and Auguste Metz founded the " Société en commandite Auguste Metz & Cie " in 1838, with
800-573: A new foundry in Dudelange , which used the new procedure exclusively. To run this plant, they partnered up with Victor Tesch and the Count de Bertier , who owned a large amount of land in Dudelange, and founded the " Société anonyme des Hauts-fourneaux et Forges de Dudelange" . From the late 19th century to World War I , the Luxembourg steel industry depended entirely on Germany. 90% of the coke used in Luxembourg
880-495: A package of laws which came into force on 1 July and enabled the government to pursue the restructuring of the steel industry, in accordance with the Gandois report's recommendations. In parallel, the Luxembourgish government sought to cooperate with its Belgian counterpart in order to bring about collaborations and production exchanges. On 9 September 1983, a meeting took place in Luxembourg between Belgian and Luxembourgish ministers with
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#1732894087995960-638: A power plant at Remerschen , France planned to install two additional units in Cattenom, bringing the plant's total capacity to 5,2 MGW. This extraordinary concentration in proximity to the border caused concern among Luxembourgish political circles, as well as the wider public. On 3 December 1979, at a Franco-Germano-Luxembourgish meeting in Bonn, the German and Luxembourgish delegations requested that France reconsider its construction plans; this, however, proved to be in vain. All
1040-402: A resolution aimed at revising the functioning of the secretariat and technical services. This resolution seemed to point towards their eventual transfer to Brussels. However, such a decision was contrary to the treaty of the merging of the executives of 1965 which, in its appendix, stipulated that "the secretariat and its services remain installed in Luxembourg". The Luxembourgish government lodged
1120-642: A seasonal basis: road workers, carriers, lumberjacks, colliers. These were generally farmers temporarily freed up from agricultural work, and earning some extra money. Luxembourgish steel industry generally produced iron bars, wrought iron and cast iron. Due to the weak domestic market, most of this was exported to workshops in Liège, which used the iron in their manufactured products which were exported from Dutch ports. In 1841/1842, there were 11 blast furnaces in Luxembourg, which all used wood and whose total annual production amounted to 7,300 tons. The blast furnaces were in
1200-605: A solution to a question which had troubled domestic politics for more than 30 years. The law of 12 June 1981 officially recognised as victims of Nazism those Luxembourgers who had been forcibly conscripted into the Wehrmacht during the German occupation in World War II ; it therefore put an end to the moral and material discrimination between different categories of World War II victims. The government also managed to harmonise and integrate
1280-481: A supranational institution: it would mean transferring control over a central part of the national economy to a common body. Trade union leaders feared the move would mean lower pay for Luxembourgish workers, while managers feared that subsidies to Belgian coal producers would mean an imbalance in prices between Belgium and Luxembourg. The Benelux countries each received one seat in the High Authority, and Luxembourg
1360-585: A trade alliance with the French, but it was not to be. Instead, after tough negotiations, Luxembourg found a new economic and trade partner in Belgium, with whom it formed the Belgium–Luxembourg Economic Union in 1921. The post-war return of Lorraine — hitherto part of Germany — to France meant that the vast Lorraine-Luxembourg-Saar industrial complex was broken up. The break with Germany meant that
1440-537: Is the largest political party in Luxembourg . The party follows a Christian democratic and conservative ideology and has been described as centre to centre-right . Furthermore, akin to most parties in Luxembourg , it is strongly pro-European . The CSV is a member of the Christian Group , European People's Party , and the Centrist Democrat International . The CSV has been
1520-573: The Great Depression , which hit the country with some delay. Production stood at 2,512,000 tonnes in 1937 and 1,551,000 tonnes in 1938. There had traditionally been a high number of foreigners working in the steel industry in Luxembourg, making up 60% of the work force in 1913. This proportion had declined in World War I; however, it then increased from a level of 25% in 1922 to 40% in 1930. The 1920s, then, showed that although World War I constituted
1600-623: The SA des Mines du Luxembourg et des Forges de Saarbruck , which was run by Victor Tesch . In 1871 they received permission to open a foundry in Esch-sur-Alzette, which was later renamed ARBED-Schifflange. This steel mill first produced cast iron , which was processed in Burbach [ de ] , at Burbach Foundry [ de ] . At the same time the Brasseur foundry (later "ARBED Terres Rouges")
1680-543: The "sliding-scale" of salaries. However, every attempt to limit the extent of the index provoked outrage amongst the trade unions within the Tripartite. Nevertheless, the law of 8 April 1982 restricted the automatic indexation of salaries and limited the impact and frequency of index adjustments. In addition, it introduced a special levy, named the national investment contribution, of 5%. The various government actions undertaken since 1979, or 1975, had not succeeded in stabilising
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#17328940879951760-581: The 1870s, the influx of German capital, the exploitation of the mines of the Esch-Alzette area in the south of the country, the use of the Gilchrist–Thomas process in steel-making after 1879, and a high level of immigration—Germans after 1870, Italians after 1890—contributed to make Luxembourg's steel industry one of the most important in Europe. Five large steel companies were founded from 1870 to 1890: Under
1840-606: The 1920s, Zylstra concluded that Luxembourg had the capacity to create a separate and independent Luxembourgish monetary entity. However, the currency association remained the centrepiece of the UEBL, which retained great political importance. The Luxembourgish government settled for an expansion of its right to print Luxembourgish notes, and took advantage of the circumstances to pass a law creating an Institut Monétaire Luxembourgeois (IML) in May 1983. The IML assembled in one institution various powers which had previously been dispersed, such as
1920-515: The 44 years for which MEPs have been directly elected. The party's President has been Prime Minister Luc Frieden since March 2024. A leading figure from the party is the former prime minister , Jean-Claude Juncker , who previously governed in coalition with the Luxembourg Socialist Workers' Party (LSAP) until the 2013 general election . The earliest roots of the CSV date back to
2000-653: The CSV and the DP, formed a coalition government under Pierre Werner . Over the course of the legislative period, several ministerial reshuffles took place. Jean Wolter died on 22 February 1980, and was replaced by Jean Spautz , a former metal-worker and trade unionist. From 22 November 1980, Colette Flesch succeeded Gaston Thorn , who was appointed to head the Commission of the European Communities . On 3 December 1982, Camille Ney resigned for health reasons. Ernest Muhlen
2080-548: The DAC, the "Division Anti-Crise" common to the steel companies, had a record headcount of 3,850. The steel industry Tripartite was almost permanently in session. To save the steel industry , the State had to strengthen its intervention. Through tax reductions and investment aids, it supported the restructuring and modernisation effort. However, the State's financial aid increasingly took on the characteristics of direct subsidies. This attracted
2160-547: The European industrial regions. As a consequence, it became profitable to use the harder coke instead of charcoal. This meant that the furnace owners were more and more interested in using minette . From 1854 to 1869, there were 64 requests for a concession to mine minette , mostly from Belgian and Prussian companies. About two-thirds of the mined minette was exported to the Prussian Rhineland and to Belgium . From
2240-828: The German companies in Luxembourg were sold: The German market had collapsed; the Belgian market was saturated by Belgian production; the French market was closed off due to customs; this meant that the Luxembourg foundry owners had to find new markets elsewhere in Europe, in America and Asia. They quickly founded trading posts, to export their products worldwide. In 1920, ARBED founded Columeta ( Comptoir Luxembourgeois de Métallurgie , later renamed Trade Arbed ), and HADIR followed suit in 1923, by joining SOGECO ( Société Générale pour le Commerce de Produits Industriels ). Columeta had branches in Brazil , Argentina , India and Japan . New markets for
2320-568: The Luxembourg heads of industry, to make them pledge to cooperate with the Germans. Anyone refusing to do so would have to resign. The representatives of ARBED and the Rodange foundry agreed to the conditions, while those of Hadir refused. Thereupon, on 15 June the Hadir foundries were incorporated into a new body, the Differdinger Stahlwerke AG . The Rodange foundry, owned by " Ougrée-Marihaye ",
2400-439: The Luxembourg steel industry not only had to reorient itself economically, but also had to restructure itself. The challenge was twofold: firstly, to secure both pre- and post-production markets (that is, on the one hand, the supply of raw materials, minette and coke, and on the other, a demand for the finished products, from nails to grey-beams); secondly, to take the place of the German firms, which had had to withdraw. In 1919,
2480-525: The Saar and Ruhr areas, but also to Belgian forges. A deposit of minette , a low-quality Luxembourgish iron ore, had been discovered in the south of the country in 1842. In addition to the opening of the German market, the expansion of the railway network from 1855 to 1875 was another important factor, particularly the construction of the Luxembourg-Thionville railway line, with connections from there to
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2560-537: The Treaty of Versailles. However, this concession was effectively cancelled out by the massive inflation in Germany in 1922–1923. The Luxembourg steel industry managed to transform itself in a short period of time from a supplier of German steel companies into an independent producer of diverse finished goods, which were competitive on the world market. In summary, one can say that the basis for Luxembourg steel production, as it
2640-490: The arrival of British cast iron. The re-establishment of customs rights in 1879 put an end to this crisis. From then onwards, cartels were formed with a view to regulating the steel market. In 1879, a Lorraine-Luxembourgish iron cartel ( Lothringisch-Luxemburgisches Roheisensyndikat ) was formed, and in 1889 a steel cartel, the Lothringisch-Luxemburgischer Stahlwerksverband . Around the turn of
2720-518: The attention of the European Commission, which claimed that the state aid to the steel industry was incompatible with the competition rules of the Common Market . The Luxembourgish government defended itself by stating that the national aid was less than that in neighbouring countries. The government was also aware that in order to reduce production costs, they had to try to slow the evolution of
2800-500: The century, a greater level of vertical integration came about in Luxembourg. The exploitation of minette , iron extraction, steel production and the process of rolling the steel were organised close to each other. The companies banded together in bigger and bigger conglomerates: The production statistics make it clear how much the Luxembourg steel industry had changed within only 35 years. The volume of minette mined increased tenfold from 700,000 tons in 1868 to 7 million tons in 1913;
2880-582: The country, even after the industrial reforms which have taken place since the 1960s. Iron was already worked and processed by the Celts in the region of modern-day Luxembourg. Archeological remains of this have been found on the Gläicht between Esch-Alzette and Rumelange . In 2003–2005, the remains of a smelting plant from the 13th or 14th century were found and excavated in the Genoeserbusch near Peppange . In
2960-501: The creation of a European Coal and Steel Community in 1950: soon, Germany, Belgium, Italy, the Netherlands and Luxembourg agreed to the " Schuman Plan ". For Luxembourg, the stakes were high, as steel was vital to its economy. The Schuman Plan would allow it to export its products to Germany and France, and grant it free access to the raw materials it required. At the same time, there was some nervousness at transferring sovereign rights to
3040-684: The development of the Euromarket was at the basis of the boom of the financial centre in the 1970s, private banking and off-balance-sheet operations generating commissions took the lead during the 1980s. The financial sector became the engine of growth after the steel crisis. The number of banks grew relatively slowly: 143 banks in 1988, compared with 111 in 1980. But the number of investment funds exploded. In 1980, 76 investment funds represented global net assets of 118 billion francs. In 1988, 473 entities represented holdings equivalent to 1,668 billion francs. The Luxembourgish government certainly benefited from
3120-401: The different systems of secondary school, public and private. The law of 31 May 1982 defined the State's financial involvement in the budgets of private schools. It established a contractual system which subjected the private schools to a monitoring of their curriculum and their teachers' qualifications, in return for state subsidies. In the cultural sphere, the law of 24 February 1984 regulated
3200-559: The direct public development aid of the Grand Duchy. It regulated the status of Luxembourgish citizens active in developing countries as agents of development aid. For a small state, development aid constituted an expedient means to assert itself at the international level and to give itself a positive image in the world. The early 1980s were marked by a worsening of the steel crisis . Industrial production continued to decrease, and exports diminished. Inflation reached over 8%. In October 1982,
3280-476: The door to fruitful collaborations between Belgian and Luxembourgish companies. In his final report, Gandois advocated the concentration on the main sites of ARBED and the dismantling of low-performing installations. The restructuring, scheduled to last until 1990, was to reduce average annual production to 3,5 million tonnes of steel, and the workforce to 10,500 workers. On 30 June 1983, the Chamber of Deputies passed
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3360-518: The factories. In Belval, the blast furnaces A (1965) and B (1970) started production. A new process, the so-called LD-AC process, allowed steel quality to be improved. ARBED managed to reinforce its position, and in 1967 it took over Hadir, thereby becoming a monopoly producer in Luxembourg steel production and processing. Around the same time, it became the majority owner of the Sidmar factory in Ghent , one of
3440-613: The following villages: Luxembourg's steel industry changed radically in the mid-19th century. In 1842, Luxembourg joined the Zollverein (the German customs union), gaining access to a large market in the East. The treaty to join the Zollverein was regularly renewed over the next 60 years, and facilitated the country's industrial development. Profiting from the economic dynamism of its German neighbours, Luxembourg started exporting its iron ore to
3520-692: The foundation of the Party of the Right on 16 January 1914. In December 1944, the Party of the Right was officially transformed into the Luxembourg Christian Social People's Party. "Luxembourg" was dropped from the name by late March 1945. The first elections after the Second World War took place in 1945; the party won 25 out of 51 seats, missing an absolute majority by a single seat. From 1945 to 1974,
3600-488: The foundries: at Arbed-Schifflange, prisoners from the external camp of the Natzweiler-Struthof concentration camp at Audun-le-Tiche were used. Due to the national importance of each country's steel sector, there was a grave risk of overproduction. For this reason, it was necessary to create a supranational body capable of coordinating European steel production. The French foreign minister, Robert Schuman , proposed
3680-409: The goal of defining a common strategy and organising the abandonment of certain sites. The monetary fluctuations of the period certainly complicated the management of the steel crisis. On 22 February 1982, the Belgian government unilaterally decided to devalue the Belgian franc, casting aside the agreement which required a joint decision with its UEBL partner. Luxembourgish authorities were faced with
3760-422: The government. Its goal was to manage the disappearance of thousands of jobs in steel-working as well as possible. In 1977, a Division Anti-Crise , or DAC, was created, where those who had lost their jobs in steel-working could do community work (2,700 people in 1977). Obligatory early retirement at 57 years was introduced for ARBED employees; as well as cash subsidies for those who left voluntarily. In March 1979,
3840-647: The help of Belgian investments holding group " Société d'industrie luxembourgeoise ". They rented the foundry of Berbourg from Jean-Nicolas Collart and in 1845 built the Eich foundry. In 1847 they bought their investors' shares, and from then on ran the company " Metz & Cie " as a family business. From 1866 to 1868, the Metz brothers built a modern steel mill in Dommeldange, with four blast furnaces, which processed coke and minette . In 1870, Norbert Metz associated his company with
3920-476: The inter-war period, in contrast to the early boom years, were characterised by a level of stagnation, and several crises. The foundry of Rumelange closed down in 1927, as did that of Steinfort in 1931. There were further technological breakthroughs, but none as revolutionary as the Gilchrist-Thomas process. Production in the 1930s was subject to large fluctuations. Luxembourg did not escape the consequences of
4000-577: The largest party in the Chamber of Deputies since the party's formation, and currently holds 21 of 60 seats in the Chamber. Since the Second World War , every Prime Minister of Luxembourg has been a member of the CSV, with only two exceptions: Gaston Thorn (1974–1979), and Xavier Bettel (2013–2023). It holds two of Luxembourg 's six seats in the European Parliament , as it has for 14 of
4080-472: The later steps taken by the government were hampered by the French authorities' refusal to reverse their decision to build Cattenom. The other recurring issue was that of the seat of the European Parliament. A growing number of MEPs expressed more and more openly their preference for Brussels, and demanded a single and definitive seat for their institution. On 7 July 1981, the European Parliament adopted
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#17328940879954160-490: The left experienced a heavy defeat. The Luxembourg Socialist Workers' Party 's share of the vote fell to 22,5%, its worst result since the war; it received 14 seats. The Communist Party lost half of its votes, and was left with only two Deputies. As to the Social Democratic Party , it did not manage to carve out a durable place on the political scene, and shrank to a tiny group with only two seats. The two winners,
4240-426: The loss of jobs in heavy industry through growth in other sectors, especially the services sector. Important legislative and regulatory measures supported the development and diversification of financial activities. In 1979, a government commission was set up to study the improvement of the legislative infrastructure of the financial centre. The law of 23 April 1981 enshrined banking secrecy . Bankers were now subject to
4320-568: The most modern steelworks in Europe, with direct access to the sea. In 1974 the world steel market collapsed due to over-production. The reasons for this were the oil crisis of 1973 , which increased energy prices and caused demand to decrease; competition from Asia , which was growing bigger and bigger; and European steel companies owned by the state, which to some extent brought their products to market at dumping prices. In one year, from 1974 to 1975, sales from Luxembourg fell from 6.4 million tons to 4.6 million tons. It soon became clear that this
4400-427: The party was in government and gave Luxembourg the following Prime Ministers: Pierre Dupong , Joseph Bech , Pierre Frieden , and Pierre Werner . Mostly in coalition with the Democratic Party (DP), it gave Luxembourg a certain economic and social stability. In the 1950s, the party structure underwent a certain democratisation: the party's youth section (founded in 1953) and women's section received representation in
4480-541: The party's central organs. The party went into opposition for the first time in 1974, when the Democratic Party's Gaston Thorn became Prime Minister in coalition with the Luxembourg Socialist Workers' Party (LSAP). In 1979, the party returned to government after its victory in the 1979 general election ; Pierre Werner became PM. In 1984, Jacques Santer became PM. He remained as such until 1995, when Jean-Claude Juncker became PM, with Santer meanwhile taking up
4560-558: The possibility of being involved in the French satellite TDF-1. This led the Luxembourgish government to turn to an American expert, Clay T. Whitehead , who advocated the concept of a medium-power satellite and created a consulting group, Coronet Research. His satellite plan was finally taken up by the Santer government, and its realisation entrusted to the Société Européenne des Satellites (SES). The Werner-Flesch government finally found
4640-479: The post of President of the European Commission. Following the 2013 general election , the party went into opposition for the second time in its history as the Democratic Party's Xavier Bettel became Prime Minister in coalition with the LSAP and The Greens , making it the first time in Luxembourg's history that a three-party coalition government had been formed. This also marked the first time that The Greens were part of
4720-400: The pre-industrial period (17th-18th centuries), there were a number of furnaces throughout the country, located near rivers (for water power) or forests (where charcoal was produced). "Bohnerz" ("bean ore") was used. The furnaces only employed a small number of permanent, specialised workers, estimated at 700 in the late 18th century. This early industry involved another 8,000-10,000 workers on
4800-488: The printing and management of banknotes and coins, monitoring the financial and banking sector, as well as representing the Grand Duchy in international bodies. The creation of the IML responded to the Luxembourgish government's desire to enter as a full-fledged partner in the decision-making instances which were put in place in the framework of the future European monetary union . The government's economic policy tried to make up for
4880-472: The production levels in wartime, there are two periods to be distinguished: From August 1940 to March 1942, production was lower than before the war, due to the collapse of the French export market, the need to retool towards the German market, and the lack of raw materials. In August 1940, there were 14,000 unemployed. But from April 1942 until the liberation, the war industry's demands grew and grew. There were now not enough workers to meet demand. Another reason
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#17328940879954960-610: The role of an honest broker. In September 1926 he managed to hammer out an agreement on the International Steel Agreement . This functioned as a cartel, and put an end to the steel war. Five large steel producers limited their production through a quota system: 40,5% for Germany; 31,9% for France; 12,6% for Belgium; 6,6% for the Saar region; 8,5% for Luxembourg. In 1926, Luxembourg again reached its 1913 level of production (2,560,000 tonnes of cast iron), and surpassed it in 1929 with 2,906,000 tonnes. The following years of
5040-418: The same confidentiality that applied to certain professions, such as doctors or midwives. Disclosure of confidential information was considered a crime punishable by prison or a fine. The law of 25 August 1983 on investment companies created a legal framework for investment funds and gave them a specific tax status. It created a new form of entity: the Société d’investissement à capital variable ( SICAV ). While
5120-423: The sector. As soon as the Tripartite agreements were signed, the companies were once again making demands on the government. The government also undertook an in-depth examination of the real survival chances of Luxembourgish steel production. The task was given to Jean Gandois , a foreign expert who had also been consulted by the Belgian government on the restructuring of its steel industry. This double mandate opened
5200-437: The steel industry were found in Britain, Italy, Austria and the Netherlands. In 1923–1925, sold 72-75% of its production in Europe; Belgium (20%) and Germany (11%) were the major clients. America and Asia each absorbed about 12%. Unlike the situation under the Zollverein, the external markets had become highly volatile. The German market, essential to Luxembourg's economy, had been kept open until 1925 by provisional measures of
5280-472: The tax obstacles – especially the withholding tax – encountered by this type of companies in their countries of origin. However, the financial centre's success was also based on a skilful niche policy which required flexibility and quick decision-making. In the early 1980s, the government involved itself in an up-and-coming sector, satellite broadcasting . At a conference of the members of the International Telecommunication Union in Geneva in 1977, Luxembourg
5360-552: The use of languages in the Grand Duchy . It reaffirmed trilingualism as the basis of national identity: "The national language of the Luxembourgers is Luxembourgish." French was confirmed as the legislative language. French, German and Luxembourgish were the administrative and judicial languages. Christian Social People%27s Party The Christian Social People's Party ( Luxembourgish : Chrëschtlech Sozial Vollekspartei , French : Parti populaire chrétien-social , German : Christlich Soziale Volkspartei ; CSV or PCS )
5440-495: The volume of cast iron produced increased from 100,000 tons to 2,5 million, and steel production, started only in 1886, reached 1,5 million tons in 1913. The number of blast furnaces increased from 14 in 1871 to 47 in 1913. Just before World War I, Luxembourg was the sixth-largest cast iron producer worldwide, and the eighth-largest producer of steel. During World War I, industrial production continued in Luxembourg, now under German occupation . The social crisis brought about by
5520-443: The war caused the workers in the metallurgy industry to found trade unions: the politically neutral Luxemburger Berg- und Hüttenarbeiter-Verband was founded on 1 September 1916, and the socialist Metallarbeiterverband was created on 3 September. Yet the big break for the industry came later: as a consequence of the German defeat, Luxembourg had to withdraw from the Zollverein in 1919. The steel industry, amongst others, advocated
5600-410: The whole range of products, only the most profitable site for each would remain in existence. Thus, the Steckel mill at Dudelange was closed. 1979 showed that these measures would not be enough: the steel crisis intensified, through increased inflation, which increased interest levels on loans, the second oil crisis , which caused energy and raw material prices to shoot up, and over-production, which
5680-425: Was allocated 4 out of 78 seats in the Common Assembly. The period from World War II to 1974, known as the Trente Glorieuses , was characterised by stable growth. In 1958, 25,700 people were employed in the Luxembourg steel industry, rising to 27,200 in 1974. Steel production rose from 3 million tons in 1951, to 4 million in 1960, to 6,4 million in 1974. Between 1946 and 1967, 30,2 billion francs were invested in
5760-590: Was allowed to continue its existence; it received a German trustee as its head, and was renamed the " Eisenhüttenwerke Rodingen ". Several German steel companies, including the Reichswerke Hermann Göring , were eager to take over ARBED. Gustav Simon would not allow this: he recognised the key role that ARBED played in Luxembourg, and was reluctant to lose control over it. ARBED's management was not changed - Aloyse Meyer remained managing director - due to fears that this would affect its productivity. However,
5840-477: Was attributed five channels for direct satellite broadcasting. The Luxembourgish State initially intended to allocate them to the Compagnie Luxembourgeoise de Télédiffusion (CLT). However, the company's shareholders feared the risks and expenses involved with a satellite. At the same time, the French government exerted strong pressure to the extent that Luxembourg abandoned its own plans, and offered CLT
5920-753: Was founded in Esch, by the brothers Dominique-Alexis and Pierre Brasseur . The following year, the Steinfort foundry owners Charles and Jules Collart set up a foundry in Rodange, with other investors. The same year, the SA Gonner, Munier et Helson built blast furnaces in Rumelange. In the 1880s, there was a further change: the Metz brothers acquired the rights to the process invented in 1879 by Sidney Thomas and Percy Gilchrist , allowing cast iron to be made into steel. They first used this process in Eich, but soon after opened
6000-669: Was imported from the Ruhr , and up to 70% of its produce was sold to Germany. The machinery and technology came from Germany, as did the skilled personnel and the engineers. The decision-making centre was in the Ruhr, whereas Luxembourg was a kind of periphery, where raw materials and semi-finished goods were made, to be processed in the Ruhr. After the German annexation of Lorraine in 1871, Luxembourgish steel products were subject to intense competition. Germany's suppression of customs rights in 1873 and overproduction provoked an economic downturn amplified by
6080-411: Was not a short-term incident, but a structural steel crisis . ARBED faced the challenge of modernising itself as quickly as possible to become profitable again with declining sales and income. In 1975 a law was enacted that prevented lay-offs for economic reasons. On 18 August 1975 a Tripartite economic committee was created, that is, a committee involving representatives of employers, trade unions and
6160-509: Was promoted to minister, while Jean-Claude Juncker joined the government as Secretary of State for Work and Social Security. In the period 1979-1984, two problems dominated the relations between Luxembourg and its neighbours. The first was that of the construction of a nuclear power plant by France in Cattenom ; the other was the long-term question of the seat of the European Parliament . The Luxembourgish government having decided not to build
6240-520: Was still a factor in different steel-producing countries, despite the Davignon Plan . ARBED had received relatively little government money at this point, compared to its competitors: from 1976 to 1982 it invested 25.8 billion francs, of which only 10% were from the state. The DAC cost 5.1 billion in the same period, of which the state covered 1.6 billion. In other areas, where people were simply made redundant, these costs did not exist. From 1975 to 1979,
6320-462: Was that from September 1942, 1,200 foundry workers were forcibly conscripted into the Wehrmacht . Thus, from Autumn 1942 onwards, hundreds of so-called Ostarbeiter were taken from the occupied territories of Eastern Europe to Luxembourg and forced to work in the foundries and mines. They were not qualified to work in the foundries, and therefore production levels never reached those of the inter-war period. Other prisoners were also forced to work in
6400-402: Was to remain until the 1970s, was laid at the end of World War I. The steel war between France and Germany, of which the occupation of the Ruhr area was a part, was highly damaging to Luxembourg. The head of ARBED, Émile Mayrisch, sought to bring about a Franco-German rapprochement. His knowledge of both countries and their languages, and many contacts in the business world, allowed him to play
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