For the first time in years, Germany has dropped below meeting its international aid commitment, with recent budget cuts threatening to undermine vital support for millions of vulnerable people worldwide. From humanitarian relief in war-torn regions to food security and health programs, the impact of Germany’s reduced Official Development Assistance (ODA) is expected to hit communities already facing escalating crises.
At the end of June, the German government announced that the 2025 budget for the Economic Cooperation and Development Ministry’s (BMZ) is to fall to €10.3 billion, roughly €1 billion less than in 2024. Humanitarian funding for the Foreign Office will also continue its downward trajectory, falling to €5.9 billion for 2026–28.
These cuts follow the reductions in 2023, when BMZ’s budget dropped from €13.8 billion to €12.5 billion, to further fall to €11.2 billion in 2024. The government justified this as part of efforts to comply with Germany’s ‘debt brake’ law that limits new borrowing and to allow funds to be redirected to domestic priorities and defense.
Below the global ODA target
From supporting rural farming initiatives to providing emergency relief in conflict zones, German development cooperation has long been a lifeline for millions. In 2022, Germany was the second largest ODA donor, contributing 0.87% of its Gross National Income (GNI).
See also: Geopolitical realities drive Germany to dramatically scale back foreign aid commitments
Yet, its ODA fell by over 10% in 2024 compared to 2023, bringing its international aid commitment to 0.67% of GNI. This is below the internationally agreed 0.7% benchmark that Germany had consistently met or exceeded since 2016.
The 2025 cuts in detail
Key areas affected in 2025 include:
- Humanitarian Emergency Aid: Chopped by 53%, from €2.23 billion to roughly €1.04 billion, with funding that is vital for swift responses to disasters and conflicts being lost.
- Transformation of Agricultural and Food Systems (SI AGER): Slashed from €420 million to €345 million – a 17.9% cut which puts long‑term food security on the line
- Transitional Aid (Crisis Prevention, Reconstruction, Infrastructure): Down by 38% from €1.04 billion to €645 million, directly hitting fragile and conflict‑affected contexts
Why the cuts?
Germany’s ruling coalition describes the cuts to aid spending as “painful but necessary” arguing that these reductions are essential to free up funds for other priorities, particularly increased defense spending to meet NATO’s 5% GDP target, alongside domestic initiatives such as higher pensions for mothers and VAT reductions for restaurants.
Finance Minister Joerg Kukies and Chancellor Olaf Scholz argue this rebalancing preserves national security without completely abandoning international responsibilities. However, development experts warn that this shift will have severe consequences.
Human impact and global risks
Michael Herbst, Chair of VENRO, Germany’s umbrella organization of development NGOs, commented that more than 100 million people are displaced and in need of support, and these funding cuts only worsen matters. The cuts will also affect sea rescue non-profits – according to a statement by Sea-Eye, this will halt operations in search and rescue in the central Mediterranean.
See also: Billions worth of the cuts announced to aid budgets predicted to lead to “catastrophic outcomes”
Welthungerhilfe and Catholic aid groups have urged the government to reverse the trend, arguing that development cooperation is an investment in peace, justice, and a common future. Former Development Ministers Heidemarie Wieczorek‑Zeul (SPD) and Gerd Müller (CSU) have joined this chorus, stressing that Germany risks diluting its values and global influence if it continues to retrench.
Wider domino effect
Meanwhile, the OECD has flagged that if major donors like Germany, France, the UK, and the US all cut ODA for two years in a row, this would be the first such convergence in 30 years, jeopardizing progress on sustainable development goals and emergency relief worldwide.
Causing a ripple effect of stalling or bringing about the complete collapse of climate adaptation projects in vulnerable regions, digital education platforms in developing countries could run out of support, and health initiatives targeting maternal mortality or infectious diseases may falter.
OECD projections indicate an estimated 13–25% drop in net bilateral ODA for least‑developed countries is looming for 2025 and 2026. Germany’s retreat could also embolden less‑committed donors to freeze their budgets, triggering a domino effect.
The cost of pulling back
In an era of intensifying crises, slashing the very tools designed to prevent and mitigate these is a decision that comes at a profound human cost. If the goal is a safer, more stable world and a stronger German economy that thrives on global partnerships, the government will need to revisit these cuts, explore alternative revenue streams, and recommit to its long-standing leadership in development cooperation.
