The governing coalition of the Democratic Party (DP), the Socialist Workers' Party (LSAP) and the Green Party-which ousted the dominant Christian Social Party (CSV) at the 2013 poll-is likely to serve its full term to 2018.
Support for the government has weakened, with its credibility damaged by voters' overwhelming rejection of plans to extend voting rights to the many foreign residents in Luxembourg. However, it is still united.
The legacy of the euro zone crisis will continue to pose risks. The prospect of Greece leaving remains high. Tensions within Europe are being exacerbated by the migrant crisis and the threat of crossborder terrorism.
Country Report Luxembourg 2nd Quarter
Outlook for 2016-17
Form of state
Head of state
Main political parties
Central bank governor
Economic structure: Annual indicators
Economic structure: Quarterly indicators
Economic structure: Comparative economic indicators
Outlook for 2016-17: Political stability
Outlook for 2016-17: Election watch
Outlook for 2016-17: International relations
Outlook for 2016-17: Policy trends
Outlook for 2016-17: Fiscal policy
Outlook for 2016-17: Monetary policy
Outlook for 2016-17: International assumptions
Outlook for 2016-17: Economic growth
Outlook for 2016-17: Inflation
Outlook for 2016-17: Exchange rates
Outlook for 2016-17: External sector
Outlook for 2016-17: Forecast summary