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Germany and Luxembourg: Bilateral relations
Name of country: Grand Duchy of Luxembourg, Großherzogtum Luxemburg, Grand-Duché du Luxembourg, Groussherzogtum Lëtzebuerg
Establishment of diplomatic relations:
• 23 April 1951 (Federal Republic of Germany)
• 5 January 1973 (German Democratic Republic)
System of government: Representative democracy in the form of a constitutional monarchy
Relations between the Grand Duchy of Luxembourg and the Federal Republic of Germany are close and based on mutual trust in the political, economic and cultural spheres. Members of national and regional governments and parliaments in the two countries are in close contact. Luxembourg has a population of 691,000, of whom roughly 12,100 are Germans, with an unknown number of dual nationals. In addition, some 53,400 people commute to Luxembourg from Germany every day. 47% of Luxembourg’s residents are not Luxembourg nationals. Cross-border cooperation within the Greater Region, a regional association comprising Luxembourg, the neighbouring Länder Saarland and Rhineland-Palatinate, as well as Belgian and French regions, is particularly important. The Greater Region’s Secretariat is based in Esch-sur-Alzette in Luxembourg.
Together, Belgium (7.81 billion euro), Germany (6.8 billion euro) and France (2.84 billion euro) account for more than 71% of Luxembourg’s imports.
In 2025, Luxembourg exported goods worth 3.8 billion euro to Germany, 2.3 billion euro to France, and 2.1 billion euro to Belgium. Altogether this makes up around 54% of all of Luxembourg’s exported goods.
Germany is the country’s prime partner for both imports and exports.
In the service sector, the most important trading partners in 2025 were Germany, France and Belgium. The USA, the UK and South Korea came top of the table as regards trade in services with non-EU countries.
GDP was stated to be 98.5 billion euro, but this figure also includes the contributions of foreign commuters.
Workers’ compensation per capita equalled 92,800 euro.
According to Eurostat, Luxembourg had the highest pro-capita spending on research and development in the EU in 2025, at 759 euro.
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.
Many young people from Luxembourg continue to choose to study in Germany. In 2025, Germany was still their favourite destination, followed by Belgium and France. In that year, 4219 Luxembourg nationals were enrolled in German universities. 3105 Luxembourg nationals studied in Belgium and 2319 in France.