Relations between the Grand Duchy of Luxembourg and the Federal Republic of Germany are close and in a spirit of trust, both on the political and economic fronts and in the cultural realm. Members of both the national and regional governments and parliaments in Luxembourg and Germany are in close contact. There are currently around 13,100 Germans living in Luxembourg, including many with dual nationality. In addition, some 47,200 people commute to the Grand Duchy from Germany every day. This number includes approximately 5000 Luxembourg nationals who live in Germany.
Cross-border cooperation within what is known as the Greater Region (a regional association comprising Luxembourg, neighbouring German Länder and Belgian and French regions) is particularly important. The Greater Region’s Secretariat is based in Esch-sur-Alzette in Luxembourg. An agreement on cross-border vocational training was signed between Land Rhineland-Palatinate and Luxembourg on 12 March 2018.
Germany is Luxembourg’s main economic partner and accounts for approximately 27 percent of total foreign trade. Germany is the destination of 27.6 percent of Luxembourg’s exports and the source of 27.4 percent of Luxembourg’s imports. Relations are also close in the financial sector. Of the 141 banks registered in Luxembourg as of 31 December 2016, 24 are branches of German banks.
Luxembourg has the EU’s highest level of GDP per capita (101,254 euros, estimate for 2018). This also includes services provided by foreign commuters. Economic growth stood at 2.8 percent in 2019.
Germany and Luxembourg maintain wide-ranging cultural relations. A bilateral cultural agreement has been in place since 1980.
Germany, France and Luxembourg established the trilateral Institut Pierre Werner (IPW) in Luxembourg City in 2003. The institute promotes cultural and intellectual dialogue between the three countries.
The University of Luxembourg, which was established only in 2003, is part of the University of the Greater Region network along with five other universities in Germany, France and Belgium. Germany is an attractive study destination for many students from Luxembourg, especially those studying humanities and science. A cooperation agreement has been in place between the Deutsche Forschungsgemeinschaft (German Research Foundation) and the Luxembourg National Research Fund (FNR) since 2009.