Reduced German Aid Budget: Fresh Spending Reductions Looming
In a concerning development, Germany has approved a draft of its 2026 federal budget, which includes significant cuts to its development spending. The budget of the Ministry for Economic Cooperation and Development (BMZ) is expected to fall below €10 billion ($11.4 billion) for the first time since 2018, marking a shift away from international aid.
This decision has sparked concern among aid organisations, with Caritas International, a global aid organization, expressing deep worry about the cuts and their potential impact. Oliver Mueller, head of Caritas International, emphasised that these cuts will strain aid organisations and harm vulnerable populations in the Global South.
The cuts are not limited to Germany alone. There is a trend of cutting back on aid for the world's poorest, with countries like the United States, the United Kingdom, Belgium, and other EU members also making such reductions.
The planned cuts have led to warnings from VENRO, an umbrella organization for development cooperation and humanitarian aid organisations. VENRO has accused the German government of overlooking the importance of the work done by networks of professional organisations from civil society and those on the ground in providing emergency aid.
The cuts will have a disproportionate impact on countries already facing humanitarian crises. For instance, aid for internally displaced people in the eastern Democratic Republic of Congo, which the Foreign Ministry currently provides funding for, will no longer receive any more support. Other countries, such as Ethiopia, South Sudan, Somalia, Sudan, and the Occupied Palestinian Territories, will also feel the brunt of these cuts.
The reductions in funding will affect various critical programs, including emergency relief, food security, health, gender equality, and education projects. As a result, aid organisations will struggle with fewer resources to support millions of vulnerable people already exposed to escalating crises. This could lead to increased humanitarian suffering, higher mortality risks, and setbacks in development targets related to health, gender equality, and disability inclusion.
The budget of the BMZ had already shrunk by almost €1 billion from 2024 to 2025. One such crisis is aid for internally displaced people in the eastern Democratic Republic of Congo, which the Foreign Ministry will no longer provide any more funding for. Caritas International, which has been able to fund several large projects thanks to government money, will see these projects eliminated without replacement.
Despite the reduced funding, Mueller emphasised that an independent ministry for development cooperation remains important. He also highlighted that Caritas International won't be making across-the-board cuts, but will continue to provide assistance to certain humanitarian crises using their own funds.
Steffen Meyer, the finance ministry state secretary, is predicting that Germany will fail to meet the international target of 0.7% ODA ratio by 2029. The draft budget for 2026 provides for expenditures of €520.5 billion, around a third of which is currently still financed by new loans.
The Finance Minister, Lars Klingbeil, has stressed the growing importance of military readiness to counter Russia's aggressive warfare as the reason for the cuts. However, critics argue that engagement in development policy and humanitarian emergency aid also serves global security and climate protection.
In summary, Germany's drastic aid budget cuts will undermine essential development and humanitarian programs, deepen crises in the Global South, and strain aid agencies tasked with supporting populations in urgent need.
[1] Deutsche Welle [2] Reuters [3] The Guardian [5] Devex
- The 2026 federal budget of Germany, which includes significant cuts to its development spending, has sparked concern among aid organizations like Caritas International.
- Countries such as the United States, the United Kingdom, Belgium, and other EU members, including Germany, are reducing aid for the world's poorest, causing worry about the potential impact on vulnerable populations in the Global South.
- The German government's decision to cut back on international aid has been criticized by VENRO, who accuses the government of overlooking the importance of the work done by civil society organizations in providing emergency aid.
- The reductions in funding will affect various critical programs, including emergency relief, food security, health, gender equality, and education projects, which could lead to increased humanitarian suffering, higher mortality risks, and setbacks in development targets.
- Germany's drastic aid budget cuts will reportedly be covered by international news outlets like Deutsche Welle, Reuters, The Guardian, and Devex, highlighting the potential negative impact on essential development and humanitarian programs in the Global South.
