The reason for that is, both of them think they are the better nation. People look for mistakes that others from different countries do or typical habits. Then they give each other names to insult each other. An Example for this are words like: "Inselaffe" for people from Great Britain or "Rothaut" for American Indians. I think, they do that just for fun.
The deeper reason for that might be, that everyone of them thinks that his people were biological and intellectual superior to the others.
Another reason for why they insult each other might be, that the ancestors waged war one time.
The politicians try to solve that problem by trying to unite the different nations. An example for this is the Euro. And in schools a lot of different languages are taught like English, Spanish, French, Greek and so on. This helps to get the different countries closer, too.
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