Wikipedia, that cesspit of friggin' bullshit, has this to say:
Quote:
The history of Luxembourg is considered to begin in 963, when count Siegfried I acquired a rocky promontory and its Roman-era fortifications known as Lucilinburhuc, ′little castle′, and the surrounding area from the Imperial Abbey of St. Maximin in nearby Trier.
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So there you have it. It's right in the name.