There's no real reason for Luxembourg to be a country anyway.
I considered that one for the deluge. They got their own langugage and a distinct history. They are hardly Germans. Snowstalkers comment is as absurd as saying: "There is no reason for Austria to be a country, since they speak German".
http://en.wikipedia.org/wiki/Luxembourgish_language
The luxembourgish language is Francique mosellan, and it's (or at least was until very recently) also spoken all around in parts of Belgium, Lorraine and Germany. I am fully aware of Luxembourg's history, as I lived near their border for a time. But there really is no real reason for them to be a country. I mean they are in a union of customs and currency with Belgium for a long time, and the only reason why they still exist is as a tax haven and a means for poor workers of the neighbouring countries to work and get paid a little more, albeit with a very scarce social security coverage.