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Germany Reduces Development Aid Budget Amid Rising Global Crises

Germany Reduces Development Aid Budget Amid Rising Global Crises

German Development Minister Reem Alabali Radovan opened the Bundestag debate on the federal government’s proposed 2027 budget by highlighting a series of global emergencies, including devastating floods in Nepal, severe heat waves, wildfires, and crop failures driven by drought. “Millions of people are facing hunger,” said the Social Democratic Party (SPD) minister. “And one thing is clear: the climate crisis is threatening the entire world. No country can tackle it alone.”

Despite these urgent challenges, the ministry’s budget is set to shrink for the fifth consecutive year, dropping from slightly over €10 billion to just under €9.5 billion. In 2022, the allocation stood at nearly €14 billion, marking a reduction of approximately one-third since then.

This financial contraction stands in stark contrast to the strategy Radovan unveiled in January, where she positioned development policy as a crucial pillar of German security alongside diplomacy and defense. Michael Herbst of VENRO, the umbrella organization for around 150 development and humanitarian NGOs, expressed deep skepticism. “The renewed reductions in funding for international cooperation are further exacerbating an already critical situation,” Herbst stated.

Herbst also criticized the stagnation of humanitarian aid funding managed by the Foreign Office. Although this budget exceeded €3 billion in 2022, it has remained frozen at €1 billion since 2025. VENRO is calling for increased investment to combat hunger, particularly given expected agricultural declines due to the conflict involving Iran and dry summer conditions.

According to a survey of VENRO member organizations, the cuts have already resulted in ten million fewer people receiving assistance. Herbst noted that many local partner organizations, essential for effective aid, can no longer operate, and warned that the full impact of these reductions may not become apparent for three to four years.

The budget tightening across most ministries is a consequence of the Zeitenwende announced by Chancellor Olaf Scholz following Russia’s invasion of Ukraine. While Germany has significantly increased its defense spending, other sectors have faced substantial cuts. Herbst is urging the Bundestag to exempt development cooperation and humanitarian assistance from the country’s debt brake, pointing out that exceptions have already been made for military modernization and aid to Ukraine.

Green Party lawmaker Jamila Schäfer echoed these concerns during the debate, arguing that climate action and development cooperation serve Germany’s own interests. “Those who strengthen military security while cutting support for international stability have a blind spot in their security policy,” she said.

However, Nicolas Zippelius of the governing CDU/CSU alliance defended the cuts, stating that every ministry must contribute to consolidating the federal budget. He argued that less funding should encourage a sharper focus on priorities and critical reviews of existing structures, rather than exempting the development ministry from fiscal rules.

Jan Sebastian Friedrich-Rust, head of Action Against Hunger, described the planned cuts as short-sighted and dangerous, warning that up to 22.6 million people worldwide could die by 2030 as a result. His organization delivered a petition with nearly 100,000 signatures to coalition leaders, titled “Don’t Balance the Budget at the Expense of Solidarity: Strengthen International Aid!” Friedrich-Rust emphasized that the long-term costs of hunger and instability far exceed the expense of prevention.

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