5 Euro – Grand Duchy of Luxembourg

In 2015, the Grand Duchy of Luxembourg was a fully integrated member of the Eurozone, having adopted the euro as its sole legal tender in 1999 (in its non-physical form) and using euro banknotes and coins since their introduction in 2002. As such, its monetary policy was entirely set by the European Central Bank (ECB), with Luxembourg’s central bank, the Banque Centrale du Luxembourg (BCL), participating in the Eurosystem. The year was characterized by the ECB’s ongoing efforts to combat deflationary risks and stimulate the euro area economy through unconventional measures, most notably the launch of a comprehensive quantitative easing (QE) program in March 2015.

The domestic currency situation was stable and unremarkable, reflecting Luxembourg’s robust and highly developed financial sector. The country’s economy, with its strong focus on banking, investment funds, and wealth management, benefited from the euro's stability and the seamless cross-border transactions it facilitated with its key neighbors: Belgium, France, and Germany. There were no discussions or movements toward altering the currency regime; the euro was firmly entrenched and seen as a cornerstone of Luxembourg’s economic success and international financial identity.

However, the broader Eurozone context of 2015 did present indirect challenges. The ECB's low-interest-rate environment and expansive monetary policy, while supportive for growth, compressed bank profitability margins—a relevant factor for Luxembourg's large banking sector. Furthermore, ongoing debates about Eurozone governance and the aftermath of the Greek government-debt crisis (which peaked in the summer of 2015) underscored the interconnected risks within the currency union. For Luxembourg, a founding EU member and strong proponent of European integration, maintaining euro stability and supporting deeper banking and fiscal union were key policy priorities that framed its approach to the currency situation that year.