Mutually Beneficial

Forty years ago, on January 22, 1963, French President Charles de Gaulle and German Chancellor Konrad Adenauer signed the Elysée Treaty. For decades before Germany and France had been archenemies. The Franco-German Friendship Treaty was meant to change that through extensive cooperation on a political, economic and cultural basis.

The Germans and French didn't just get to know each other better through educational exchanges or the joint television network Arte. The Franco-German partnership also established the foundation for the political and economic union of Europe.

The two countries are now each others' most important trade and economic partner. The statistics speak for themselves.

Import and exports

German cars are in high demand in France, while French cars lead German automotive imports. Last year 328,000 German cars were delivered to customers in France; 254,000 French cars went to German customers. Cars are the leading item in bilateral trade, followed by machines, chemicals and pharmaceuticals, electrical products and foodstuffs.

On the French market German furniture is just as sought-after as washing machines. In Germany French wine and champagne have many adherents. According to Giselher Schlebusch, spokesman for the Franco-German Chamber of Commerce and Industry in Paris, absolutely everything is traded between the two countries – from raw products to high tech products.

Give and take

Germany traditionally records a surplus in the bilateral trade balance: in 2001 it was up to €20 billion ($21.3 billion). German exports to France were worth €69 billion, while French exports to Germany made up €49 billion. The bilateral balance increased only slightly last year due to economic problems in both countries.

While 16.8 percent of French imports come from Germany, 14.6 percent of French exports go to Germany. The French portion of German export and imports isn't as high: France has an 11 percent share in German foreign trade.

Thoroughly entrenched

German-French market activities are promoted and supported by vast investments. French investments in Germany amount to €30 billion. German firms have invested around €25 billion in subsidiaries in France. The palette of subsidiaries ranges from sales offices and service points to large industrial facilities. 1400 German firms from all possible branches are members of the Chamber of Commerce in Paris, and according to Giselher Schlebusch, the majority are subsidiaries that have been around for many years. Schlebusch believes that that fact alone is a sign of economic success, since the firms would have otherwise withdrawn from the market long ago.

Though well-known companies are represented in the Chamber, mainly small and medium-sized firms maintain distribution offices and production facilities in the neighboring country. Each year around 100 German companies invest in the French market. The German firm Bosch, known for home appliances, tools and automotive equipment, has 15,000 employees in France; Siemens, the German engineering giant, has more than 10,000 workers there. Nearly every French car is constructed using parts made in Germany. DaimlerChrysler assembles the Smart car in France.

The 2,700 German companies in France employ 300,000 people, while the 1,300 French firms in Germany have 230,000 employees. In the upper echelons of leadership, however, managers from the neighboring country are still a rare sight.