Germany and Luxembourg: Bilateral relations

04.10.2023 - Article

Relations between the Grand Duchy of Luxembourg and the Federal Republic of Germany are close and based on trust, both on the political and economic fronts and in the cultural realm. Members of both the federal and regional governments and parliaments in the two countries are in close contact. There are currently around 13,000 Germans living in Luxembourg, including many with dual nationality. In addition, some 51,900 people commute to Luxembourg from Germany every day.

Cross-border cooperation within the Greater Region (a regional association comprising Luxembourg, the neighbouring Länder Saarland and Rhineland-Palatinate, and Belgian and French regions), is particularly important. The Greater Region’s Secretariat is based in Esch-sur-Alzette in Luxembourg.

Together, Belgium (7.2 billion euro), Germany (5.9 billion euro) and France (2.9 billion euro) account for more than 70% of Luxembourg’s imports.

In 2021, Luxembourg exported goods worth 3.7 billion euro to Germany (to France 2.3 billion euro, Belgium 1.8 billion euro). Altogether this makes up around 55% of all of Luxembourg’s exported goods.

In the service sector, the most important trading partners in 2021 were Germany, the UK, the United States, France and Italy. In 2022, Luxembourg’s per-capita GDP was 127,579 US dollars. This includes transactions by foreign commuters.

Germany and Luxembourg maintain wide-ranging cultural relations. A bilateral cultural agreement has been in place since 1980.The University of Luxembourg, which was established in 2003, is part of the University of the Greater Region network along with five other universities in Germany, France and Belgium.

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