Policy Updates

On September 2, 2025, ONE released a report indicating that the German government's proposed development budget cuts could lead to an estimated 650,000 deaths, nearly three million children unvaccinated against polio, and fail to prevent nine million new infections of AIDS, tuberculosis, and malaria.

The report highlights a significant planned decline in the budget of the BMZ by 2026, amounting to a 28% decrease from 2022 levels. During the same period, Germany's defense spending is set to increase to more than EUR86 billion (US$100 billion). The report highlights that the cuts represent just 0.05% of the total federal budget but may have life-threatening consequences for millions of people globally.

The report focused on the impact of a combined EUR542 million (US$632 million) reduction for 2025 and 2026 across four major international health and development organizations:

• The GFATM faces the largest cut of at least EUR350 million (US$408 million), with a potential additional reduction of EUR100 million (US$117 million) under discussion. This could result in 650,000 preventable deaths and a failure to stop nine million new infections;
• Funding for the GPEI is set to be halved between 2024 and 2026, a reduction of EUR18 million (US$21 million) that would leave 2.8 million children unvaccinated and risk 18,500 cases of permanent paralysis;
• A EUR160 million (US$187 million) cut to the IDA, the World Bank’s fund for the lowest-income countries, is projected to block between EUR500 million (US$583 million) and EUR600 million (US$700 million) in leveraged investments for health, water, and social safety nets; and
• Germany’s contribution to the UNFPA is expected to drop by one-third by 2026,falling from EUR43 million (US$50 million) in 2024 to EUR28 million (US$33 million) in 2026, endangering up to 925 lives and leaving hundreds of thousands of women and girls without access to health services and protection from violence.

On August 25, 2025, German Vice Chancellor Lars Klingbeil met with Ukrainian President Volodymyr Zelenskyy in Kyiv, reaffirming Germany's support with a pledge of EUR9 billion (US$10.5 billion) for 2025-2026.

During the visit, Klingbeil stated that Germany, as Ukraine's largest European supporter, would continue to stand by its side throughout the ongoing war. He emphasized that Ukraine can continue to rely on Germany's military and financial assistance.

Klingbeil stressed the importance of building a strong Ukrainian military and increasing domestic defense production to enable Ukraine to defend itself and deter future aggression. He also called for reliable security guarantees to ensure lasting peace for both Ukraine and the broader European continent, stating that Russian President Vladimir Putin should have no illusions about Germany's support crumbling.

On August 25, 2025, German Development Minister Reem Alabali Radovan began her visit to Israel, the Palestinian territories, Jordan, and Saudi Arabia to discuss the future of Gaza and regional stabilization, completing her trip on August 28, 2025.

The visit was a continuation of Germany's efforts to address the humanitarian situation and plan for Gaza's future. The Minister's goal was to gather support from regional partners for the significant joint effort required for rebuilding.

In Ramallah, Alabali Radovan met with Prime Minister Mohammad Mustafa and other ministers to discuss short-term recovery and long-term governance under the Palestinian Authority. In Jordan, she met with Planning Minister Zeina Toukan and UNRWA's Deputy Head Natalie Boucly. Talks in Saudi Arabia were planned with the Saudi Fund for Development, the counterpart of Germany’s KfW. The Minister also met with families of Israeli hostages in Tel Aviv.

On August 14, 2025, the German government announced an additional EUR6 million (US$7 million) in humanitarian assistance for Afghanistan to address the urgent needs of over 23 million people, channeling the funds through the WFP and other NGOs.

The German government provided the additional funding from the budgets of the FFO and the BMZ. The funds, which will bypass the de facto Taliban government, are intended to provide food and maintain life-saving basic healthcare.

The support will primarily target returning Afghans and communities in border regions, with a special focus on women and children. The German government reiterated its call for the de facto Taliban government to lift restrictions on women's freedom of movement and work and to ensure unhindered access for the needs-based distribution of humanitarian assistance to all people in need.

On July 30, 2025, the German government published its 2026 draft budget, confirming a continued cut to Germany’s development spending and projecting a fall in the ODA/GNI to 0.52%.

The 2026 draft budget outlined a EUR9.9 billion (US$11.5 billion) allocation for the BMZ, a 3% decrease of EUR331 million (US$383 million) compared to the 2025 draft. The department's budget is planned to shrink further to EUR9.3 billion (US$10.8 billion) by 2029. This corresponds to a fall in ODA/GNI is from 0.56% of GNI in 2025 to 0.52% in 2026, and further to 0.43% by 2029.

Other ministries also faced cuts:

• The AA was allocated EUR6.1 billion (US$7.1 billion), a slight increase from 2025. The budget line for humanitarian assistance and crisis prevention remained unchanged at EUR1.43 billion (US$1.7 billion), following a 47% cut between 2024 and 2025;
• The BMG’s envelope for global health was set at EUR122 million (US$141 million), a decrease of EUR10 million (US$12 million) from 2025; and
• The BMFTR saw an overall budget decrease of 5%, and its budget line for health research, medical technology, and global health is cut by 15% to EUR327 million (US$379 million).

German Finance Minister Lars Klingbeil described the cuts as a political compromise, stating that coalition partners had pushed to either dismantle the ministry or significantly reduce its funding and supported Development Minister Reem Alabali-Radovan's pledge to improve spending efficiency.

Parliamentary discussions on the 2026 budget draft are set to commence following the summer recess, with final decisions expected at the Budget Committee’s settlement meeting in November 2025.

On July 25, 2025, Germany announced a EUR500 million (US$586 million) loan to South Africa, through the German development bank KfW, which aims to facilitate reforms in South Africa’s energy sector to create a better environment for private investment and support the country's transition to renewable energy.

The funds will support the expansion of the necessary grid infrastructure for solar and wind power. The loan is composed entirely of market funds.

The initiative is part of the JETP, through which Germany, the UK, France, the Netherlands, Denmark, and the EU support South Africa's climate and energy policy. Under the JETP, the South African government committed to accelerating its phase-out of coal. The loan will promote the needed expansion of South Africa’s power grid, with a target of constructing over 14,000 kilometers of new transmission lines by 2032.

On July 4, 2025, GCA convened a Funders Forum at its Rotterdam headquarters to assess progress and shape the future of the AAAP, which has mobilized over US$17 billion in climate adaptation investments across Africa, intending to reach US$25 billion by the end of 2025.

The forum brought together key partners including the BMGF, UK FCDO, GIZ, NORAD, and MDBs.

The AAAP attendees reviewed an evaluation by BCG, which measured progress across key priority areas such as food security, water and nature, resilient infrastructure, and youth engagement. Participants also discussed initiatives on health, education, and urban resilience, including upcoming “People’s Adaptation Plans” in 11 African and 10 Bangladeshi cities. Over 70% of AAAP projects now incorporate gender-responsive and inclusive strategies.

On June 25, 2025, German Development Minister Reem Alabali-Radovan announced a EUR600 million (US$688 million) contribution to Gavi to support global immunization through 2030, at Gavi's replenishment conference held in Brussels.

Alabali-Radovan emphasized that investing in vaccine access is both a humanitarian and economic priority, underscoring Germany’s long-standing role in strengthening global health systems. The funding will help immunize hundreds of millions of children and build more resilient healthcare infrastructure in low-income countries.

On June 24, 2025, the German government presented the draft 2025 budget which considers reducing its ODA budget as defense spending increases to meet NATO commitments, with ODA expected to drop to EUR10.3 billion (US$11.8 billion), down from EUR11.5 billion (US$13.1 billion) in 2024 and EUR13.8 billion (US$15.8 billion) in 2022.

Meanwhile, Germany plans to raise defense spending to 2.4% of GDP in 2025, exceeding the NATO target. The shift comes amid concerns about future US support under Trump's administration and aims to strengthen European security.

However, humanitarian organizations have raised concerns that these cuts could further undermine Germany’s longstanding commitments to global development and crisis response.

From June 16 to 18, 2025, AFD Group CEO Rémy Rioux visited Ukraine and Moldova, signalling AFD's strengthened commitment to Ukraine’s reconstruction and European integration ahead of the Ukraine Recovery Conference in Rome on July 10 and 11, 2025.

Rioux highlighted that in Odessa, AFD supports the REHAB 1 program, implemented by EF, to improve mental health and rehabilitation services for civilians and veterans. In Kyiv, Rioux and French officials met Ukrainian ministers and advisers to prioritize financing for reconstruction, decentralization, and European convergence.

In Lviv, Rioux signed AFD’s first Ukrainian grant, totaling EUR5million (US$6 million), with the mayor for urban mobility, improving access to the Unbroken rehabilitation center for over 150,000 displaced people. This project, supported by GIZ, the European Commission, and EBRD, paves the way for future direct loans to Lviv.

In Moldova, Rioux met Moldovan Prime Minister Dorin Recean, Deputy Prime Minister Cristina Gherasimov, and Energy Minister Dorin Junghietu to confirm AFD as a leading bilateral partner and a key implementer in the European Growth Plan, which totals EUR1.9billion (US$2.2 billion) over 2025–2027. The INSPIREE program, AFD's first investment in Moldova and co-financed with the KfW, is planned to boost energy security by renovating public buildings.