Germany

Germany Cuts Development Aid 8% in 2025 Budget

Published SEP 22 2025

Story

Above: Signage outside the Federal Ministry for Economic Cooperation in Bonn, Germany, on July 31, 2025. Image credit: Michael Nguyen/NurPhoto/Getty Images

The Facts

The German government has implemented an 8% reduction in the budget for the Federal Ministry for Economic Cooperation and Development in its 2025 federal budget, approved last Thursday.
DW
Anadolu Ajansı
Euractiv
According to Germany’s official Digital Federal Budget, economic cooperation and development spending was cut in real terms by almost one billion euros ($1.1 billion) from 11.2 billion euros in 2024 to 10.3 billion euros for 2025.
bundeshaushalt
Additionally, emergency foreign aid provided by Germany’s Federal Foreign Office was reduced from 2.2 billion euros in 2024 to just over one billion euros in 2025, representing a decline of two-thirds since 2022.
Development Aid
DW
Further cuts for the ministry are also included in the country’s 2026 budget, which will reduce foreign aid spending by approximately 331.4 million euros to 9.9 billion euros, equivalent to a 1.9% share of government spending.
bundeshaushalt
Cuts to the Federal Ministry for Economic Cooperation and Development partially made way for increases in German defense spending, which rose from nearly 52 billion euros in 2024 to 62.4 billion euros in 2025.
bundeshaushalt
Economic Cooperation and Development Minister Reem Alabali Radovan warned the Bundestag that the cuts would reduce Germany’s influence on the world stage. The minister reiterated, however, that German development policy remains far from “American conditions.”
Deutscher Bundestag

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The Spin

Pro-government narrative

The cuts to economic cooperation and development are sound economics and a strategic imperative in a changing world and of benefit to recipient countries. Germany's decision allows it to reorient its foreign aid just like the U.S. and others, while encouraging impoverished countries to take economic responsibility after decades of Western support.

DasParlament

Government-critical narrative

At a time when the U.S. is withdrawing from the global stage and other actors seek to stake their claim, these cuts may cause irreparable harm to German interests. Using euros abroad not only reduces global suffering but also enhances Germany’s international reputation and ensures European security by fostering stability in other regions.

Deutscher Bundestag