Germany’s development budget set to fall again as aid groups warn of consequences

Germany’s proposed 2027 development budget would decline to just under €9.5 billion, marking a fifth consecutive annual reduction and roughly one-third less than in 2022. Aid organizations say the cuts are reducing the reach of projects and weakening local partners, while government lawmakers argue that limited funds must be focused on priorities.

Germany’s proposed 2027 budget for the Federal Ministry for Economic Cooperation and Development is set to fall from just over €10 billion to just under €9.5 billion, according to the development ministry. The reduction would mark the fifth consecutive annual cut. In 2022, the ministry’s budget was nearly €14 billion, meaning funding has declined by roughly one third since then.

Development Minister Reem Alabali Radovan opened the Bundestag debate by describing floods, heat waves, wildfires, drought and crop failures around the world. “Millions of people are facing hunger,” she said, adding that the climate crisis threatened the entire world and could not be tackled by individual countries acting alone.

The cuts have drawn criticism from aid organizations. Michael Herbst of VENRO, an umbrella group representing about 150 development and humanitarian NGOs, said reduced international cooperation funding was worsening an already critical situation. He also criticized the Foreign Office’s humanitarian aid budget, which exceeded €3 billion in 2022 but has remained at €1 billion since 2025.

VENRO cited a survey of 34 member organizations, saying the number of funded projects was falling and that more than 10 million fewer people were being reached by those organizations alone. Herbst said many local partner organizations could no longer operate and warned that the full effects of the reductions might not become visible for another three to four years. VENRO is calling for increased funding to address hunger and other crises.

The reductions reflect broader federal efforts to consolidate spending after Germany increased defense expenditure following Russia’s invasion of Ukraine. Herbst urged lawmakers to exempt development cooperation and humanitarian assistance from the country’s debt brake, noting that exceptions had been made for military modernization and aid to Ukraine.

Green lawmaker Jamila Schäfer argued that development and climate spending served Germany’s own interests and that security could not be built through defense investment alone. Nicolas Zippelius of the governing CDU/CSU said every ministry needed to help consolidate the budget, arguing that smaller funding could still produce greater impact if spending were more tightly prioritized. Jan Sebastian Friedrich-Rust of Action Against Hunger called the planned cuts “short-sighted and dangerous” and said his organization had delivered a petition opposing them with around 100,000 signatures.