Sibiu was founded in the XII century by Transylvanian Saxons – ethnic Germans invited to settle the lowlands of Transylvania in order to defend its borders. It developed into a large commercial center as the privileges given to the Saxons by the Hungarian kingdom allowed them to develop craftsmanship and offered them commercial privileges for their goods.
Up until 1941, Sibiu had a mixed German-Romanian population with a Hungarian minority. A part of the Germans were relocated by the Nazis after the secret 1939 Molotov pact. After World War II, a forced expulsion of the remaining German population occurred, policy applied by the Allies all throughout eastern Europe.
Today, Sibiu has a Romanian population with a Hungarian minority.