The Belgium–Luxembourg Economic Union ( Dutch : Belgisch-Luxemburgse Economische Unie , French : Union économique belgo-luxembourgeoise , German : Belgisch-Luxemburgische Wirtschaftsunion , Luxembourgish : Belsch-Lëtzebuerger Wirtschaftsunioun ), abbreviated to BLEU or UEBL , is an economic union between Belgium and Luxembourg , two countries in the Benelux Union .
8-542: BLEU was created by a treaty, signed on 25 July 1921, despite a referendum against such a proposal, between Belgium and Luxembourg , and came into effect upon ratification by the Luxembourg Chamber of Deputies on 22 December 1922. Under the terms of the treaty, the economic frontier was lifted and the Belgian franc and Luxembourg franc were set at a fixed parity (though revised in 1935 and 1944) establishing
16-654: A fixed exchange rate system , which existed until the introduction of the euro . The original treaty lasted for fifty years, expiring in 1972; this was extended for ten years in 1982 and again in 1992. On 18 December 2002, the two countries signed a new convention. It has been seen as the forerunner of the Benelux Union , which was established as the Benelux Customs Union in 1944 by the London Customs Convention and also includes
24-586: A republic. The economic question was more difficult for the government to implement. Indeed, since 1917, France had promised Belgium free rein (economically) in Luxembourg, and had informally precluded a customs union, but negotiations with the French government proceeded nonetheless, before collapsing in May 1920. This prompted the government to turn to Belgium, and within a year, negotiations had been settled, and
32-462: The Grand Duchess as the incarnation of the nation itself, and settled the republican issue once and for all, as although the monarchy still had its detractors, particularly amongst socialists, its importance as a political issue waned considerably. An exception was the city of Esch-sur-Alzette , in which the majority (55%) voted for becoming a republic. In Luxembourg City only 33% voted for
40-696: The Netherlands. While many aims of the BLEU have been subsumed by the Benelux Union, and later the European Union , it still has some relevance in being able to decide more precise measures than these organisations. International trade statistics were available for BLEU only as a combined entity until 1999 when European Community rules required split information. Compared with the Zollverein ,
48-606: The UEBL had several advantages for Luxembourg. Belgium was only allowed to alter its customs tariffs or conclude trade treaties after consultation with the Luxembourgish government, whereas before 1918 Luxembourg had to go along with German decisions. Similarly, only Luxembourgish customs agents would operate in Luxembourg, while under the Zollverein Prussian officials had operated in Luxembourg. The functioning of
56-893: The UEBL was entrusted to a board of directors consisting of two Belgian members (including the chairman) and one Luxembourgish member, and the Higher Council of the Union (with three Belgian and two Luxembourgish members). 1919 Luxembourg referendum A double referendum took place in Luxembourg on 28 September 1919. Voters were asked questions on their preferred head of state and whether there should be an economic union with either France or Belgium . The majority voted to retain Grand Duchess Charlotte as head of state, and for economic union with France. Both results were seen as being highly indicative of
64-542: The country's will, and were acted upon. The result in favour of the monarchy was seen to be a Wilsonian act of self-determination , in opposition to the 'French' republic or the imposition of the Belgian dynasty. By defeating both of these prospects, the referendum result put a clear end to the Allied Powers ' discussion of Luxembourg's destiny. The political result was to have settled the national question, left
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