Following the Treaty of Rastatt (1714), Luxembourg was returned to the Habsbourg family. The seat of the governor-general was reinstated in Brussels. A long period of peace in spite of looming war saw the city-fortress extended. Fort Thüngen, named after Adam Sigmund von Thüngen, commander of the Fortress, was built in 1732/33. The garrison was home to both Walloon and German regiments, which were posted within the fortress and within the Duchy - and at times even outside of the Duchy. Although part of the garrison was involved in the Seven Years' War (1756-1763), Luxembourg was not involved in this conflict.
The many reforms under the reign of Maria Theresa (1740-1780) contributed to the country's prosperity. This was reflected most notably in the architecture of the farmsteads all over the Duchy. The Boch faience factory at Septfontaines was also founded under an imperial licence.
The reign of Francis II saw the end of the Ancien Régime. Having fought off a campaign to roll back the Revolution in 1792, the French began a blockade of the Gibraltar of the North in November 1794. The starving Austrian garrison was forced to capitulate after 8 months. The Duchy of Luxembourg became the administrative seat for the newly created Département des Forêts.
During the Napoleonic Era (1799-1814), the fortress lost its strategic importance due to it no longer operating on a border. As opposed to the presence of a small French garrison in the Fortress, the many conscripts from Luxembourg were fighting abroad in Bonaparte's army.
Conscription led to discontent among the population, erupting into the 'Klöppelkrich' peasant revolt, which was suppressed immediately.
The withdrawal of the French on 3 May 1814 signalled the military end of this era marked by social and legal progress.
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