Luxembourg

No it's not just banks and Eurocrats. Wealthy Luxembourg City is one of Europe's most underestimated capitals, with a fine range of museums and galleries and a brilliant dining scene. But most impressive is the town centre's spectacular setting, straddling a deep-cut river gorge whose defences were the settlement's original raison d'être. Come on a summer weekend when accommodation prices drop, the streets are often full of music and there's an ample flow of the local bubbly.