Reuter Ministry

On 28 July and 4 August 1918, there were elections for a Chamber of Deputies that was to revise the Constitution. This Constituent Assembly was composed of: • 23 Deputies of the Party of the Right • 12 Socialists • 10 Liberals • 5 members of the People's Party • 2 members of the National Party • 1 independent Liberalism, which had dominated the political stage during the 19th century, lost ground. In the Constituent Assembly, the liberals still tried to fight a rear-guard battle, in opposing women's right to vote, as they assumed women would be more likely to vote for conservative parties. This opposition was in vain. The Party of the Right (and its successor party, the CSV) was to head the government for the rest of the century, with only two exceptions (1925-1926 and 1974-1979). Taking account of the new majority in the legislature, the ministers Collart, Liesch (liberal) and Welter (independent) tendered their resignations. However, the Grand Duchess and the Prime Minister refused to accept, as they wanted to maintain a national union government. Collart left the government in January 1920, Liesch and Welter in April 1921. From then on, the cabinet consisted only of right-wingers. This was not changed by the partial elections which took place in the constituencies of Centre and Nord on 28 May 1922, even though the liberals improved their results, at the expense of the socialists. == Foreign policy ==

After the armistice of 11 November 1918, German troops left the country, making way for the Allied armies which passed through Luxembourg to occupy the Rhineland. Economic partner Germany's defeat rendered Luxembourg's existing treaties obsolete. After the French announcement, the Luxembourgish government re-started negotiations with Belgium. These were slow-going, but resulted on 25 July 1921 in the signing of a treaty on a customs and monetary union between the two countries. The Belgium–Luxembourg Economic Union came into force in March 1922. The treaty stipulated the abolition of customs barriers between the two countries, a common external tariff, a common trade policy led by Belgium and a currency association. The Belgian franc became the common currency, while Luxembourg however retained its right to print Luxembourgish notes. The economic union was never a perfect one, as the treaty did not require the harmonisation of tax systems. League of Nations Bound by its neutral status and solidly anchored in the German sphere of influence, Luxembourg had not led a real foreign policy before World War I. The violation of its neutrality in 1914 and the questioning of its independence during 1918-1919 showed the Luxembourgish government that it was necessary to play a role on the international stage. Luxembourg was not invited to the Paris Peace Conference and was not one of the founding members of the League of Nations established by the Treaty of Versailles. From 1919, the Reuter government took steps to have the Grand Duchy admitted to the League of Nations. Luxembourg's unarmed neutrality seemed at first to present an obstacle to its admission, as the League's charter provided for the passage of troops over member states' territory, and the participation in economic and financial sanctions against a hypothetical belligerent. At the same time, the United Kingdom considered the small size of Luxembourg's territory a problem. The Reuter government succeeded in overcoming these objections, partly by hinting at the possibility of a revision of the Luxembourgish Constitution. On 16 December 1920, a session of the League of Nations in Geneva voted unanimously to have Luxembourg admitted. Later, the Luxembourgish government, conscious of the population's attachment to the principle of neutrality, let the constitutional revision drag on; it would never come into force. == Domestic policy ==

As soon as the occupation had ended, the Reuter government had to face an internal crisis. After the German withdrawal, on 10 and 11 November 1918, a Soviet was formed in Luxembourg City on the same model as the workers' and peasants' councils in Russia. In the Chamber of Deputies, the liberals and socialists demanded an end to the monarchy, accusing the Grand Duchess of intervening in the political arena in a partisan manner, and of having been too close to the German occupiers. Their motion was narrowly rejected. on the monarchy and the choice of economic partner On the international stage, the government faced hostility towards the Grand Duchess. On 23 December 1918, the French government refused to receive the Luxembourgish ministers in Paris. Émile Reuter, Auguste Liesch and Nicolas Welter returned to Luxembourg with empty hands, where the troubles continued. On 9 January 1919, the Company of Volunteers revolted and a Committee of Public Safety proclaimed a republic. These movements did not attract majority support, and were quickly repressed by the intervention of French troops. But the position of Grand Duchess Marie-Adélaïde was definitively compromised. The ministers convinced her that abdicating in favour of her younger sister Charlotte was the only means of saving the monarchy. On 15 January 1919, the new Grand Duchess swore her oath on the Constitution. The Reuter government had succeeded in managing the crisis. In order to reinforce the legitimacy of Grand Duchess Charlotte, the government decided to have this decision confirmed by the voters. In a referendum on 28 September 1919, Luxembourgers were invited to express their wishes on the economic future of the country, the political regime (monarchy vs republic), and Grand Duchess personally. A large majority (80%) pronounced themselves in favour of maintaining the monarchy, which could now rely on both constitutional and democratic legitimacy. == Social policy ==

The development of mass trade unions, and the short-lived creation of a Soviet after the war, revealed a profound disquiet in Luxembourgish society. From 1914 to 1920, purchasing power shrank by 300%. The steelworkers' strike also failed because it was not able to mobilise workers in other industries. After the war, the government gave private employees, civil servants, and railway workers a significant improvement in their working conditions. The law of 31 October 1919 gave private employees several advantages which distinguished them from manual workers: separate delegations, the 8-hour day, annual paid leave of 10 to 20 days dependent on length of service, and measures that gave security of employment. The Grand Ducal decree of 14 May 1921 gave railway workers a status similar to that of civil servants, especially with regards to pensions and security of employment. The civil servants, for their part, had their pay indexed with inflation. Drawing lessons from the strike, the government put in place various organs for discussion and consensus. The law of 4 April 1924 created five professional chambers: the Chamber of Commerce, the Chamber of Artisans, the Chamber of Work, the Chamber of Private Employees, and the Chamber of Agriculture. == Economic policy ==

Currency Luxembourg's exit from the customs union with Germany brought about a profound restructuring of the Luxembourgish economy, especially with regards to currency. Until 1918, it was mostly German money that circulated in Luxembourg, while Luxembourgish francs only played a small role. After the armistice, French military authorities occupied the main network. The lines of Guillaume-Luxembourg were exploited for the benefit of the French state, as were the Chemins de fer d’Alsace et de Lorraine. On 19 December 1918, the Luxembourgish government withdrew from its railway treaty with Germany. However, Belgium was also interested in making use of the main Luxembourgish network. France agreed to withdraw if the Belgian and Luxembourgish governments reached an agreement, but continued to exploit Guillaume-Luxembourg in the meantime. The BLEU treaty stipulated that the question of railways be dealt with. In May 1924, Reuter signed a treaty with Belgium which required the unification of the Guillaume-Luxembourg and Prince-Henri networks under a Board of Directors where Belgian representatives would have a majority. On 20 January 1925, the Chamber of Deputies, moved by anti-Belgian feelings, rejected the treaty, provoking a government crisis. ARBED, which feared the influence of the Société Générale de Belgique on Luxembourgish railways, had also opposed the government's plans. ==Composition==

28 September 1918 to 5 January 1920 • Émile Reuter: Minister of State, head of government, Director-General for Foreign Affairs and the Interior • Nicolas Welter: Director-General for Education • Auguste Liesch: Director-General for Justice and Public Works • Alphonse Neyens: Director-General for Finance • Eugène Auguste Collart: Director-General for Agriculture, Industry and Labor 5 January 1920 to 15 April 1921 • Émile Reuter (Right Party): Minister of State, head of government, Director-General for Foreign Affairs and the Interior • Nicolas Welter: Director-General for Education and Public Works • Alphonse Neyens (Right): Director-General for Finance • Raymond de Waha (Right): Director-General for Agriculture and Social Security • Antoine Pescatore (Liberals): Director-General for Trade, Industry and Labor 15 April 1921 to 20 March 1925 • Émile Reuter (Right): Minister of State, head of government, Director-General for Foreign Affairs • Alphonse Neyens (Right): Director-General for Finance • Raymond de Waha (Right): Director-General for Agriculture, Industry and Social Security • Guillaume Leidenbach (Right): Director-General for Justice and Public Works (resigned on 14 March 1923; Guillaume Soisson was appointed Director-General for Public Works) • Joseph Bech (Right): Director-General for the Interior and Education ==Footnotes==