The history of Luxembourg is inherently entwined with that of surrounding countries, peoples, and ruling dynasties. Over time, the territory of Luxembourg has been eroded, whilst its ownership has changed repeatedly, and its political independence has grown gradually.
Although the recorded history of Luxembourg can be traced back toRoman times, the history of Luxembourg proper is considered to begin in 963. Over the following five centuries, the powerful House of Luxembourg emerged, but its extinction put an end to Luxembourg's independence. After a brief period ofBurgundian rule, Luxembourg passed to the Habsburgs in 1477.
After the Eighty Years' War, Luxembourg became a part of theSouthern Netherlands, which passed to the Austrian line of the Habsburg dynasty in 1713. After occupation byRevolutionary France, the 1815 Treaty of Paris transformed Luxembourg into aGrand Duchy in personal union with theNetherlands. The treaty also resulted in the second partition of Luxembourg, the first being in 1658 and the third in 1839. Although these treaties greatly reduced Luxembourg's territory, they increased its independence, which was confirmed after the Luxembourg Crisis in 1867.
In the following decades, Luxembourg fell further into Germany's sphere of influence, particularly after the creation of a separate ruling house in 1890. Luxembourg was occupied by Germanyfrom 1914 until 1918 and again from 1940 until 1944. Since the Second World War, Luxembourg has become one of the world's richest countries, buoyed by a booming financial servicessector, political stability, and European integration.