A number of leading members also held dual membership of the National Socialist German Workers Party after incorporation.

Kratzenberg, a Luxembourgish National Socialist, advocated for the integration of the Grand Duchy into the German Empire, and advanced the "Deutschtum" (German-ness) of the Luxembourgers as a historical and linguistic justification for this.

After the German Wehrmacht occupied the neutral Grand Duchy on 10 May 1940, 7 days later the "Volksdeutsche Bewegung" was founded in the city of Luxembourg.

In his function as the president of the Volksdeutsche Bewegung, Kratzenberg now reported to the head of the civilian administration, the Gauleiter Gustav Simon.

On 1 August Kratzenberg was sentenced to death and on 11 October 1946 was shot at the shooting range of the barracks of the Holy Ghost Plateau in Luxembourg City.