Luxembourg is a member of the Benelux Economic Union and was one of the founding members of the European Economic Community (now the European Union). It also participates in the Schengen Group. Luxembourg is also a member of NATO. 

Luxembourg has a parliamentary democracy headed by a constitutional monarch. Executive power is exercised by the grand duke and the cabinet, which consists of several other ministers. Legislative power is vested in the Chamber of Deputies, a unicameral legislature, who are directly elected to five-year terms from four constituencies.

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