Policy Updates

On July 22, 2024, the World AIDS Conference, hosted in Munich, kicked off with a call to reinforce the fight against HIV/AIDS and protect vulnerable groups from discrimination.

German Chancellor Olaf Scholz reiterated the goal to end the HIV/AIDS epidemic by 2030. He announced that Germany will join the UNAIDS Global Partnership for Action to Eliminate all Forms of HIV-related Stigma and Discrimination. Scholz further noted that Germany is contributing EUR1.3 billion to the Global Fund from 2023 to 2025 and stressed that Germany will continue its support for the Global Fund, as well as for UNAIDS and WHO.

Germany has introduced significant cuts to development in its 2025 draft budget. The German contribution to the Global Fund for its upcoming replenishment and funding cycle remains uncertain.

On July 22, 2024, German Development Minister Svenja Schulze attended the meeting of the G20 development ministers in Brazil, reiterated criticism of cuts to the BMZ budget, and advocated for a tax on the super-rich.

The draft budget for 2025 foresees cuts of the BMZ budget from EUR11.2 billion (US$12.2 billion) to EUR10.3 billion (US$11.2 billion). During her six-day stay in Brazil, Schulze focused on global inequality and forest protection and emphasized that the BMZ cuts will limit Germany's ability to respond to crises and risk further cementing global inequity. She also supported Brazil's proposal for a tax on billionaires.

Other voices from the coalition parties, as well as from CSOs like the ONE Campaign, have already called for the renegotiation of parts of the 2025 budget proposal, including the budget for humanitarian assistance and development cooperation. They countered recent criticism of development assistance, highlighting recent successes of development cooperation and its importance for geopolitical objectives and Germany's international positions.

On July 17, 2024, the German coalition government approved the draft budget for the 2025 federal budget, with ODA-relevant ministries facing EUR19.8 billion (US$21.5 billion) in cuts in 2025.

The budget of the BMZ was reduced by EUR937 million (US$1 billion) and the budget of the AA by EUR836 million (US$907 million).

The coalition reached a political agreement on July 3, 2024, after months of intense negotiations. While Finance Minister Christian Lindner ( FDP) insisted on adhering to the constitutional debt brake, ministers of the SPD and Greens fought to avoid cuts to their budgets. The final budget compromise adheres to the debt brake, while avoiding drastic cuts.

The total budget amounts to EUR480.6 billion (US$521.2 billion). The overall German budget was cut by 2% compared to the 2024 budget, below the previously estimated budget shortfall. Ministries affected by the cuts include the BMZ, AA, and BMWK. Additional cuts were achieved through largely technical solutions. A 'global expenditure reduction' of EUR17 billion (US$18.4 billion) still needs to be addressed.

The budget is set to be approved by Parliament in November 2024. Intense debates are expected, as budget allocations for topics such as defense and development cooperation are considered insufficient by many parliamentarians.

On July 15 and 16, 2024, German Foreign Minister Annalena Baerbock travelled to Senegal and Ivory Coast while Development Minister Svenja Schulze welcomed members of the Sahel Alliance in Berlin.

Following the planned withdrawal of German troops from Niger, the German government has noted its plans to reorient and intensify its engagement in West Africa and the Sahel.

Baerbock criticized previous German policy towards the Sahel and emphasized the need to focus on cooperation with democratic countries, such as Senegal. Accompanied by a trade delegation, she also expressed the desire to strengthen economic cooperation.

Schulze and members of the Sahel Alliance gathered for the alliance's 5^th General Assembly in Berlin. Bringing together representatives of 30 countries, the assembly aimed to strengthen employment and prospects in the region through investment and development cooperation.

On June 26, 2024, German Development Minister Svenja Schulze welcomed a proposal, developed by economist Gabriel Zucman and commissioned by the Brazilian G20 Presidency, for a global minimum tax on the "super rich".

Zucman proposed a minimum global tax of 2% on all billionaires inadequately taxed by domestic income tax frameworks. Zucman estimated the tax could amount to an additional US$250 billion annually for development purposes such as education, health, and climate.

While other members of the German government remained hesitant, Schulze pointed to extreme inequality as a major cause of societal polarization globally and called on allies to help realize the proposal.

On June 20, 2024, multiple global health actors, including Germany, announced new measures to support the build-up of vaccine manufacturing capabilities on the African continent at a conference, titled Protecting Our Future - The Global Forum for Vaccine Sovereignty and Innovation.

The conference was organized by France and hosted in Paris in partnership with Gavi and the Africa Center for Disease Control.

A key announcement was AVMA, which is slated to provide around US$1 billion across 10 years to limit the risk for private firms and bolster competitive vaccine production in African countries. The mechanism aims for the production of more than 800 million vaccine doses on the African continent within the next 10 years.

Germany and partners in Team Europe will provide around 70% of the funding for AVMA. German Chancellor Olaf Scholz and Development Minister Svenja Schulze both delivered messages of support. Strengthening regional vaccine manufacturing capabilities is a longstanding objective of German development policy.

On June 11, 2024, following poor EU election results for German coalition parties SPD and the Greens, coalition tensions rose surrounding ongoing budget negotiations with the potential to significantly impact German ODA.

All three coalition partners ( SPD, FDP, Greens) faced EU election losses, particularly the SPD and the Greens. The losses increased conflicts between parties on the budget. German Finance Minister Christian Lindner ( FDP) proposed massive cuts to the 2025 BMZ budget, which included large amounts of ODA. Development Minister Svenja Schulze, ( SPD) requested additional funding for the BMZ.

Election results have spurred leading voices of SPD and Greens to advocate for increased funding for their priorities against the opposition of the FPD.

The 2025 budget draft is scheduled for confirmation by Parliament on July 3, 2024, however, consensus on the draft remains uncertain.

On June 5, 2024, German Development Minister Svenja Schulze condemned European plans to outsource asylum processes to non-European countries, emphasizing legal and practical concerns while advocating for a humanitarian approach.

Schulze made the comments at the SPD Migration Conference. The conference also addressed national cohesion and Germany's role as an 'immigration country'. Speakers, including Special Representative for Migration Joachim Stamp and Interior Minister Nancy Faeser, discussed the complexities of migration agreements and the challenges of managing asylum processes.

Schulze highlighted the necessity for Europe to assist host countries as a humanitarian and moral obligation as well as a matter of self-interest. She emphasized the importance of upholding the right to asylum and warned against shifting responsibility for refugees away from Europe. Schulze also stressed that most refugees remain displaced in their home countries or neighboring region and need urgent humanitarian support.

Schulze's stance aligned with that of many humanitarian organizations, which have criticized the legal and moral implications of outsourcing asylum. She underscored that outsourcing asylum procedures would not deter dangerous journeys and would be costly for taxpayers.

On June 5, 2024, German Development Minister Svenja Schulze urged for greater recycling and reuse in the textile industry to protect scarce resources.

Schulze noted that the textile sector accounts for 20% of global freshwater pollution and 10% of CO₂ emissions, surpassing both international aviation and shipping, and that less than 1% of global clothing waste is recycled. She emphasized the necessity of reducing textile waste and enhancing recycling efforts, which could benefit the environment and create jobs in the recycling sector.

Over two-thirds of EU-traded textiles are manufactured in Asia, while nearly half of used EU textiles are disposed of in Africa. Germany's development policy supports sustainable practices in production countries like Bangladesh and Cambodia, aiming to reduce water and chemical use and promote recycling of production scraps. Germany has partnered with import countries, including Ghana, where second-hand markets generate significant textile waste to establish sorting centers to repurpose fabric scraps, develop recycling initiatives, and foster green job creation.

On June 5, 2024, German Foreign Minister Annalena Baerbock introduced a book titled The Foreign Office and the Colonies: History, Memory, Legacy, detailing the AA's involvement in colonial rule from 1890 to 1907, and emphasized the need for reflection and supporting global partnerships.

Baerbock emphasized that acknowledging and reflecting on this history is crucial for learning lessons and fostering strong global partnerships. Supported by an international research team, the book addresses the AA's accountability for violence and crimes in German colonies.

The book’s release is part of Germany’s broader effort to engage in dialogue with countries affected by its colonial actions, including ongoing reconciliation initiatives in Namibia and Tanzania. The AA is also active in repatriating cultural artifacts and supporting research and educational programs to critically examine Germany’s colonial legacy.