The tensions in Europe and elsewhere caused by the Chinese / Russian alliance threaten to further escalate at any moment. We cannot hope to affect or influence events, but we must certainly support our Western allies in the likelihood of war.
The above quote from the starting Intelligence Report makes it seem impossible to even consider taking over the world as Luxembourg. And playing as Luxembourg is quite a challenge, and likely something only experienced players will be doing for some extra fun. It can be much fun to try and take over the world as a tiny country like Luxembourg, and as the Intelligence Report also mentions:
we cannot hope to affect or influence events..., however, it is actually not very hard once you know the possible routes to take.
I started out by building a consumer goods factory, along with a bunch of coal power plants, and i quickly made a lot of money this way. The next thing i did was to acquire the Galaxy air transporter design from USA, along with the special forces land unit design.
After having a established a solid profit, i started building a aircraft fabrication facility, disabled the existing airport at the Luxembourg capital city, to get the reserves to enable the new military facilities. Then i started building my air transporter. After having build just one C-5A Galaxy air transporter, i disabled the aircraft fabrication to get enough reserves to man the new land fabrication and barracks, then i build 3 special forces units.
War with Iceland
When you are playing as a small country such as Luxembourg it is really just a matter of finding some easy targets. Iceland can be taken over with just a few special forces units, and a single air transporter. In this game i choose the C-5A Galaxy which is more than enough to carry my special forces around.
Since the reserves build up so slow with small countries, my top priority is to increase the population by taking over defenseless areas. Iceland, small isles, and even the north part of Russia, are practically either free takeovers or very easy to defend. Maybe it is a bug in the game, but Russia do in fact defend their territory, but their units run out of fuel and get stuck due to low supply. This does however make it possible, to easily conquer huge parts of Russia, without having to think much about defense.
This was my first attempt playing as a impossible small country. I made the mistake to make my neighbors angry when declaring war on Iceland, so my capital city was conquered by Serbia after i took Iceland. I still have control over Iceland, which is fairly secure, so i could try and recover after loosing my capital, which would be fun. But chances are that someone will attack, and then i will be defenseless with only around 6k in military reserves.