There's no question there's a lot of German influence. However, don't bring this up in front of luxemburgers - they will consider it as an insult! Generally, in the city of Luxembourg there is more French influence and it is considered quite chic to use French terms when speaking Luxemburgish (the national language) and to go to French-style restaurants and cafés. On the country, especially the regions bordering Germany everything is more focused towards Germany - people watch German television, read newspapers in German (though not FROM Germany), go shopping to Germany but constantly state how much they dislike Germany
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