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The first fortifications were built as early as the 10th century.
By the end of the 12th century, as the city expanded westward around the new St.
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is the capital city of the Grand Duchy of Luxembourg (also named "Luxembourg"), and the country's most populous commune.
Luxembourg is one of the de facto capitals of the European Union (alongside Brussels and Strasbourg), as it is the seat of several institutions, agencies and bodies of the European Union, including the European Court of Justice, the European Court of Auditors, the Secretariat of the European Parliament, the European Investment Bank, the European Investment Fund, and the European Stability Mechanism.
In the Roman era, a fortified tower guarded the crossing of two Roman roads that met at the site of Luxembourg city.
In 987, Archbishop Egbert of Trier consecrated five altars in the Church of the Redemption (today St. At a Roman road intersection near the church, a marketplace appeared around which the city developed.
The city, because of its location and natural geography, has through history been a place of strategic military significance.
When, in 1890, Grand Duke William III died without any male heirs, the Grand Duchy passed out of Dutch hands, and into an independent line under Grand Duke Adolphe.
In 2011, Luxembourg was ranked as having the second highest per capita GDP in the world at ,119 (PPP), with the city having developed into a banking and administrative centre.
In the 2011 Mercer worldwide survey of 221 cities, Luxembourg was placed first for personal safety while it was ranked 19th for quality of living.
In 1443, the Burgundians under Philip the Good conquered Luxembourg.
Luxembourg became part of the Burgundian, and later Spanish and Austrian empires (See Spanish Netherlands and Spanish Road) and under those Habsburg administrations Luxembourg Castle was repeatedly strengthened so that by the 16th century, Luxembourg itself was one of the strongest fortifications in Europe.