Luxembourg, the European Culture Capital in 2007, is the first city in Europe that will host this event for the second time. Luxembourg is an attractive country with a green and picturesque landscape and many historical sites within easy reach of one another. The central and southern part of the country that surrounds the capital, known as "the Good Land", consists mainly of rolling farmland and woods. To the northeast is the Mullerthal, characterised by sandstone rock formations and forests, while the northern third of the country is the Ardennes, set in beautiful forested hills and valleys. South of the capital is the Land of the Red Rocks, so named from its ‘red earth’, rich in iron. The southeast frontier is marked by the Moselle Valley, famous for its wines.

The capital, Luxembourg-Ville, is split into two districts: the delightful old centre, complete with fortress towers, turrets and winding, cobblestone streets; and the modern downtown area on the Plâteau du Kirchberg. The entire old part of Luxembourg-Ville was declared a World Heritage Site by UNESCO in 1994.