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In the early morning haze Luxembourg City is reminiscent of an ancient fairytale city, with its towers and turrets. The old centre of town, which has been declared a UNESCO World Heritage Site, can trace its history back to the 10th century, when Siegfried, Count of the Ardennes, built a castle on a rock above the Alzette River. He named the castle Lucilinburhuc. Over the centuries the castle and surrounding town was strengthened with numerous additional fortifications, walls and gates until it became known as the 'Gibraltar of the North'. Today the various components of the fortress are the city's chief tourist attraction. There are some other interesting sights in the old centre of town too, including several museums.

Modern Luxembourg on the plateau du Krichberg is more concerned with business than pleasure, as the work of a major international financial centre goes on inside the many modern office complexes in the area. Luxembourg has the highest number of banks of any city in Europe, and it is also home to numerous European Union institutions. The European Council of Ministers holds their sessions in the city for three months every year, and the European Court of Justice presides here too.