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Think you know Luxembourg? Think again! Dive into the secrets behind Europe's richest country—where tiny size meets giant wealth, space ambitions, secretive banks, and a wild history of independence. Why is Luxembourg such a magnet for billionaires? Watch to find out! Subscribe for more surprising stories and comment below with your favorite Luxembourg fact! #history #europe #luxembourg #money #mystery
👉 This channel was created in collaboration with @kramola_online
00:00:00 - Introducing Luxembourg
00:01:35 - Luxembourg by the Numbers
00:03:24 - The Secret of Luxembourg's Wealth
00:04:48 - Financial Secrecy and Tax Haven Status
00:06:29 - Luxembourg's Economic Success
00:07:06 - A Turbulent History and Modern Independence
00:11:11 - Modern Luxembourg and its Role in Europe
👉 This channel was created in collaboration with @kramola_online
00:00:00 - Introducing Luxembourg
00:01:35 - Luxembourg by the Numbers
00:03:24 - The Secret of Luxembourg's Wealth
00:04:48 - Financial Secrecy and Tax Haven Status
00:06:29 - Luxembourg's Economic Success
00:07:06 - A Turbulent History and Modern Independence
00:11:11 - Modern Luxembourg and its Role in Europe
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NewsTranscript
00:00Look at these picturesque shots.
00:02A country that has no access to the sea, with amazingly beautiful nature, but where there
00:09are no huge oil reserves or any other minerals.
00:13Except for the extraction of iron ore, but on a global scale, this ore is just a drop
00:18in the ocean.
00:19And yet, in this beautiful country, by law, you can't pay a worker less than 2,400 euros,
00:25which is almost 210,000 rubles in our currency, even if he has no education, no experience,
00:33or anything else.
00:34Lately, people have been talking about this country more and more as a space power.
00:39The government spends almost 2% of the gross domestic product on developing this industry,
00:43and that's a lot.
00:45In 10 years, they'll spend up to 5% of gross domestic product on space.
00:50The government cares so much about its future that it even passed a law on mining resources
00:55from asteroids.
00:56Right now, of course, all this sounds like science fiction, but who knows?
01:02Maybe soon it will be exactly these kinds of laws that will help this country acquire resources
01:06from other celestial bodies.
01:08Have you guessed which country we're talking about?
01:11We want to remain the way we are.
01:13These are the very words engraved on the pediment of the capital's town hall in Luxembourg.
01:19People here have fought for this right for over a thousand years.
01:22But is it only independence that allows Luxembourg to be the richest country in Europe?
01:29What is the main secret of this country?
01:31What is going on with Luxembourg?
01:33Let's find out.
01:35It's surprising how little the average person knows about this country beyond its name.
01:40Indeed, it's a small patch of land with a population of 640,000 people.
01:46That's about the same as Barnol or Ijevsk.
01:49On a tiny triangle that you could only spot on the world map with a microscope.
01:54In the northwest of Europe, between France, Germany, and Belgium, there is a country with
01:59an unusually high standard of living.
02:01To understand the scale of their success, we need to talk about numbers.
02:05These are just the facts.
02:07In the ranking of countries by level of prosperity, it is in seventh place.
02:12Even countries like Germany, South Korea, and the United Arab Emirates are behind.
02:17There are a lot of wealthy people in Luxembourg.
02:21Probably, someone will say that money doesn't buy happiness.
02:24Yes.
02:25That's true.
02:26But wait.
02:27And according to the happiness index, Luxembourgers are at the top.
02:31There are almost no murders here.
02:33By their number, the country is only in 214th place.
02:37Luxembourg is among the top 10 countries in the world with the highest level of freedom.
02:42And the average life expectancy of a citizen of this country is 82 years.
02:48It's a real paradise.
02:49And no matter which ranking you look at, the country presents itself with dignity.
02:54There are as many as 739 cars for every thousand Luxembourgers.
02:59For comparison, Russia has 324 and the United Kingdom has 519.
03:06The minimum salary in the country is 2,387 euros per month.
03:11Just take a look at the chart of minimum wage growth in Luxembourg.
03:16But to be fair, it's worth remembering that local prices are among the highest in Europe.
03:21But how did this happen?
03:24So what's the secret to the success of this tiny country?
03:27These riches don't just fall from the sky for them.
03:30Of course not.
03:31Although…
03:32According to Journalistic Investigations, Luxembourg is the largest offshore haven on the planet.
03:38In 2013, authorities vowed to end the country's offshore practices and stop attracting global businesses.
03:47All because Germany and France, Europe's giants, took a hard stance.
03:52At that time, the government of Luxembourg declared its readiness to strengthen cooperation with foreign tax authorities.
03:59But did this lead to anything?
04:01Of course not.
04:02A couple of years ago, journalists gained access to millions of documents about the owners of Luxembourg companies.
04:09Just think about it.
04:1055,000 offshore companies managing assets worth 7 trillion euros.
04:17Not millions, not billions, but trillions.
04:20That's an incredible amount.
04:23All this wealth is concentrated in just 2,000 square kilometers.
04:28Cristiano Ronaldo, Brad Pitt, the King of Bahrain, and many other ultra-wealthy people have made this financial paradise their
04:36home.
04:36The leaked documents contained information about 37 out of the 50 richest people in France.
04:43What are they all doing in Luxembourg?
04:45The answer is simple.
04:46They're hiding their money.
04:48Funds of questionable origin are coming into local companies from all over the world.
04:53Using Luxembourg companies gives a significant tax advantage in stock transactions.
04:59For example, if a few simple conditions are met, you can completely exempt profits from the sale of shares from
05:05taxes.
05:06Here's what a Spanish official investigating financial fraud has to say about it.
05:11Luxembourg acts as an intermediary state, which by its actions, either accidentally or intentionally,
05:18allows criminals and corrupt officials from all over the world to use it for money laundering.
05:24Luxembourg leads all cities worldwide in the number of banks located there.
05:29They are literally everywhere.
05:31An abnormally large number of the country's citizens are employed in the banking sector.
05:35At the same time, the Ministry of Justice of Luxembourg states that it is necessary to remember the right to
05:41privacy and anonymity of clients.
05:44It's understandable.
05:45The state has no intention of giving up its income.
05:49Bank secrecy here is inviolable.
05:51If you transfer your money to a Luxembourg bank, no one, literally no one, will know about it.
05:58With one caveat.
05:59In banks in Luxembourg and Belgium, the assets of Russian investors totaling 6 trillion rubles have been frozen.
06:07And there are no guarantees that this money will be unfrozen.
06:10Most likely, it will remain in these financial institutions forever.
06:15Nevertheless, many billionaires from different parts of the world prefer to live here specifically to free themselves from the tax
06:22burden.
06:23Luxembourg is called a tax haven for a reason, which has consequences.
06:27Subtitles a proofreader.
06:29In terms of gross domestic product per capita, the country ranks first in the world, ahead of all oil producing
06:35states and economic giants like the United States or Germany.
06:39Its per capita gross domestic product is almost three times higher than that of Saudi Arabia, and four times higher
06:45than Russia's.
06:46Journalists and investigators of tax schemes in Luxembourg often end up in court.
06:51Investigating the origins of billions of dollars is a dangerous business.
06:56The tricks used by the world's corporations to avoid taxes are meant to remain secret.
07:02This is the principle that guides the country's authorities.
07:05Continued.
07:06And the authorities definitely wouldn't have been able to create such an oasis of prosperity if the country hadn't defended
07:12its independence.
07:13The history of Luxembourg began back in 963, when a massive rock was given to Count Siegfried, on which a
07:22castle was built.
07:24Siegfried's descendants expanded their territories through wars, political marriages, and treaties.
07:30Remarkably, a state founded as a solitary fortress in Europe has survived for centuries and still exists today.
07:39Empires rose and fell, alliances came and went, yet Luxembourg remains today.
07:46Of course, various states laid claim to this territory.
07:49All this repeatedly led to bloody battles, and the fortress was besieged more than 20 times.
07:56By the way, Russia also played a role in the fate of this state.
08:00After Napoleon's empire fell, Luxembourg's status was uncertain.
08:05It was complete confusion.
08:07Luxembourg, on one hand, was an independent principality, but on the other hand, it was headed by the king of
08:12the Netherlands.
08:13This king, his name was William.
08:16The first one imposed high taxes on the country's citizens, and they constantly went on strike and caused a lot
08:22of problems.
08:22In the end, after a lot of trouble, in 1866, the authorities decided to sell Luxembourg to France.
08:30But the German part of the population was against it, and in 1867, it was decided to convene a special
08:37conference on the Luxembourg question.
08:39At this conference, Russia, Great Britain, France, and Prussia signed a treaty recognizing Luxembourg as a permanently neutral state.
08:48And for almost half a century, the tiny state maintained this status, despite all the power struggles that were happening
08:55in Europe at the time.
08:56In 1914, Germany unsuccessfully tried to annex the country.
09:02And during World War II, it occupied Luxembourg, and carried out forced Germanization there.
09:08And this was despite the fact that in 1939, Hitler promised Luxembourg that he would not seize the country, and
09:15that he respected its neutrality.
09:17But he did not keep his word.
09:19The ruling elite was exiled editor.
09:23More than two percent of the Dutchies' population died in that war.
09:26But as a result, the country was still able to preserve its independence.
09:31It sounds surprising, but by 1940, when all of Europe was preparing for a major bloody war,
09:36the armed forces of Luxembourg numbered only 294 soldiers and non-commissioned officers,
09:43and a few military personnel from the company of the Royal Gendarmerie.
09:46They didn't have a single chance to defend themselves.
09:50At one time, the French, Spanish, Dutch, and Austrians also ruled here.
09:55That's why Luxembourg eventually became smaller over time.
09:58The country's territory was once three times larger than it is today.
10:03As for the ruling dynasty, by tradition, the throne of the Grand Duchy is passed on to the eldest male
10:09in the family.
10:10The Ducal family is very popular among Luxembourgers.
10:13It symbolizes stability and prosperity for the small nation.
10:18The country has been lucky with its rulers.
10:21Luxembourg's ties with European Freemasonry have also played their part.
10:25Well, in our time, the country is under the wing of NATO.
10:28But what about neutrality?
10:30An attentive viewer might ask.
10:32They did everything cleverly.
10:34First, in 1948, the article about neutrality was removed from the Constitution of Luxembourg.
10:40And already the next year, the Grand Duchy joined the North Atlantic Treaty Organization.
10:46Thus, a state with armed forces of just 900 people was able to get reliable protection.
10:52Now, there are several important NATO military bases located in Luxembourg,
10:57where combat equipment and supplies for the United States' rapid deployment forces are stored.
11:02The United States assures that in the event of an attack on its tiny partner, it will provide Luxembourg with
11:10comprehensive support.
11:11Few realize that half of Luxembourg's population are immigrants without citizenship.
11:16And this benefits the passport holders.
11:19They don't want to share their privileges, high payments, and benefits.
11:23Another interesting fact is that among the native residents, there are many retirees who own land worth millions of euros.
11:32Despite the size of the country, Luxembourg is home to the Secretariat of the European Parliament,
11:37the European Investment Bank, and the European Court of Auditors.
11:41Large organizations strive to have an office right here.
11:45By the way, everyone probably knows about Schengen.
11:48There is a visa that allows you to easily travel across a whole range of European countries.
11:53So, this agreement was signed in the village of Schengen, which is located in Luxembourg.
11:59In summary, it's worth noting that it is Finland's financial sector that provides the country with the highest per capita
12:05income in the European Union.
12:07It's not surprising the country's authorities are doing everything possible to protect their business model,
12:13and probably won't follow European politicians discussing democracy and an open economy.
12:20After all, when it comes to big money, all those things take a back seat.
12:25Thank you for watching, and see you in future episodes on our channel.
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