Luxembourg appears to be one of the rare countries in which negotiation and dialogue, practised at every level of economic and social life for around sixty years, form the foundation for peaceful industrial relations which, in return, have resulted in social progress, social justice and respect for labour.
Proceeding via consensus has sometimes been called the ‘Luxembourg model'. It has contributed to the stability and development of the economic and social policy of the country, as well as economic diversification.
That's why social conflicts are almost nonexistent in Luxembourg due to the constructive dialogue between unions, employers and government.
The 'Luxembourg model' has led to a national consensus on the necessary measures to overcome the structural crisis of the 1970s and 1980s and to stimulate economic growth.
Coalition governments (combining two of the three largest political parties) have contributed their share to the stability and development of economic policy.