Germany’s role as a leading donor in international development is under increasing scrutiny following its proposed 2025 budget cuts. These reductions, amounting to nearly €1.8 billion across the Ministry for Economic Cooperation and Development (BMZ) and the Foreign Office, mark a significant departure from the country’s traditionally strong financial commitment to global aid. The move has raised concerns among humanitarian organisations, analysts, and partner nations. As conflicts, food insecurity, climate shocks and refugee crises continue to worsen, the timing of Germany’s retreat from international aid responsibilities appears deeply problematic.
In 2022, Germany reported one of the highest levels of official development assistance among OECD countries, amounting to approximately €33.3 billion, or 0.83 per cent of gross national income. However, a big part of this figure was inflated by domestic expenditure on refugees, particularly those arriving from Ukraine. These in-donor refugee costs accounted for around two-thirds of the reported increase in aid that year. Excluding these internal expenses, actual funding for development efforts abroad had already begun to decline. In 2023, the development ministry’s budget was cut by around €2 billion.
The 2023 and 2024 budgets reflected a continued softening of Germany’s commitment to global aid. While the BMZ’s funding for 2024 remained at roughly €11.2 billion, the Foreign Office’s humanitarian aid was cut by €1 billion. These cuts placed Germany below the 0.7 per cent GNI aid target it had previously exceeded and championed in international forums.
In 2025, the proposed figures confirm a deepening of the trend. The BMZ faces a cut of €937 million, and the Foreign Office is set to lose €836 million in humanitarian assistance. One of the most prominent areas affected is the ministry’s initiative for transforming global agricultural and food systems, which supports sustainable farming and food security in vulnerable regions. Funding for this initiative will be reduced by approximately 18 per cent, from €420 million to €345 million.
International organisations have warned of the wider consequences of these decisions. The United Nations estimates that more than 300 million people will require humanitarian assistance in 2025, yet current global funding levels are expected to meet only 60 per cent of that demand. Germany, as the second-largest donor in terms of humanitarian spending after the United States, plays an important role in maintaining aid flows to conflict-affected and disaster-prone countries. Its withdrawal risks leaving funding gaps in areas already struggling with overstretched services and worsening living conditions.
In Germany, the government’s budget proposals have been met with strong opposition from the civil society. German development NGOs, coordinated through the umbrella organisation VENRO, have condemned the cuts as detrimental to both Germany’s moral responsibility and its global standing. The Rosa Luxemburg Foundation has also criticised the federal government for sidelining international development in favour of national political interests, describing the shift as a betrayal of previous commitments to multilateral cooperation and solidarity.
Germany seems to be following a pattern of retreat set by other First World nations. The United Kingdom, for example, lowered its aid spending from 0.7 to 0.5 per cent of gross national income, citing domestic economic pressures. In the United States, the Trump administration made repeated attempts to slash foreign aid budgets and curtail funding to agencies like USAID.
Experts argue that sustained cuts to international aid risk not only stalling progress but actively reversing gains in poverty reduction, public health, and education. Research from global development institutions links declining aid with rising child mortality, malnutrition, and setbacks in gender equality. The UN’s Sustainable Development Goals, already off course in many regions, may be pushed further out of reach if major economies like Germany continue to withdraw support.
Some analysts suggest there are still ways to mitigate the damage. Proposals include improving the efficiency of existing aid structures, enhancing transparency, and fostering partnerships with private sector actors through hybrid finance initiatives.
Dhanishtha De is a trainee journalist at Cult Current. The views expressed in the article are
her ownand do not necessarily reflect the official stance of Cult Current.