The Netherlands and Germany have long been important trading partners in Europe, with their economic relations being strengthened in recent years.
Despite having a smaller economy than Germany, the Netherlands has been quicker to innovate and take risks, according to experts. While Germany is more industrial, the Netherlands is a nation of merchants and traders who act pragmatically and are used to gaining market share constantly.
One of the reasons for the Netherlands’ innovation strength is their practice-oriented universities that attract international students. They also have a digital edge, with many things now working digitally in authorities. The country also boasts of having a structure that is more agile and faster, without the federal structure seen in Germany. This structure makes it easier to found a company in the Netherlands, translating good ideas into the real economy quickly.
The economic relations between the neighboring countries are particularly close, with North Rhine-Westphalia and Lower Saxony being the states with the closest ties to the Netherlands. The two countries complement each other well, especially in energy issues such as the use of offshore wind energy and the production of green hydrogen. Additionally, German industry can also benefit from Dutch innovative strength, as many digital and electronic components used in German cars come from the Netherlands.
However, despite these complementary strengths, there are still potential challenges surrounding the relationship between the two countries. One of these challenges is the impact of Brexit on the Netherlands, which has led the country to orient itself even more towards Germany, both politically and economically. The economic relations between the two countries are already good, but the future of the relationship remains uncertain.
