Policy Updates

On April 26, 2024, German Development Minister Svenja Schulze announced that Germany is planning to launch an international initiative, known as SkillsAlliance for Ukraine, to address the labor shortage in Ukraine, provide training in key sectors for reconstruction, and mobilize international support.

Schulze announced the initiative during a German-Ukrainian conference in Berlin, aiming to launch at the Ukraine Recovery Conference in June 2024.

The initiative is in response to the labor shortage caused by the Russian invasion of Ukraine in Febrary 2022, with a focus on providing training and education in various sectors crucial for reconstruction, such as healthcare, construction, IT, agriculture, and renewable energy, targeting youth, internally displaced persons, and women to enhance their participation in the country's rebuilding efforts.

The initiative builds on existing vocational training programs supported by the German government, and aims to mobilize international partners including UNICEF, EBRD, and the EU Commission to address Ukraine's reconstruction needs and activate further support ahead of the conference.

On April 25, 2024, German Development Minister Svenja Schulze and the development ministers of Brazil, South Africa, and Spain called for taxing billionaire wealth during the IMF and World Bank Spring Meetings, addressing key issues like decarbonization and fiscal constraints.

During the Spring Meetings, discussions centered on pressing issues including advancing decarbonization efforts, combating climate change, and addressing fiscal constraints for heavily indebted countries to invest in poverty alleviation, social services, and global public goods.

On April 24, 2024, the AA and BMZ issued a joint statement supporting UNRWA's commitment to implementing recommendations from an independent review and pledged continued collaboration and financial support for UNRWA's humanitarian role in Gaza.

The AA and the BMZ welcomed the release of the report by the UN's Independent Review Group, led by former French Foreign Minister Catherine Colonna. UNRWA committed to swiftly and comprehensively implementing the report's recommendations, building upon measures already taken in response to allegations raised by Israel. The German government engaged extensively with Israel, the UN, and other international donors concerning the allegations against UNRWA.

The statement underscored the urgent need to implement the Colonna report's recommendations promptly and emphasized the importance of strengthening UNRWA's internal audit, enhancing external oversight of project management, ongoing coordination of UNRWA staff lists with Israeli security authorities, and improving internal training.

The German government also expressed explicit support for Sigrid Kaag's new pivotal role as the central UN coordinator for Gaza, pledging full support. Against this backdrop and alongside these reforms, Germany is expected to resume cooperation with UNRWA in Gaza, in line with other countries including Australia, Canada, Sweden, and Japan. Germany will coordinate closely with its key international partners regarding further financial support, noting that UNRWA's short-term financial needs in Gaza are currently covered by existing funds.

Continuing immediate collaboration aims to uphold UNRWA's role in Gaza's humanitarian assistance, as other international organizations currently rely on UNRWA's operational structures in Gaza. The statement concluded by echoing the preceding G7 reaffirmation of the imperative for UNRWA and other UN agencies to fulfill their mandate fully amid Gaza's enduring humanitarian crisis.

On April 24, 2024, German Development Minister Svenja Schulze offered support to businesses, both domestically and internationally, to comply with the EU's Supply Chain Directive, aiming to improve working conditions and environmental standards globally.

Schulze hailed the European Parliament's approval of the directive as a positive step for international development. The directive aims to improve working conditions and environmental standards in supply chains globally. Schulze emphasized the importance of fair competition across the EU and announced concrete assistance measures for both German companies and those in partner countries.

The BMZ is set to expand initiatives such as the Partnership 2030 program, focusing on connecting businesses and NGOs to promote responsible supply chain practices. The BMZ will also boost advisory services and establish local helpdesks in partner countries to support compliance with the directive's requirements. The efforts underscore Germany's commitment to fostering fair trade and sustainable development on a global scale.

On April 24, 2024, German Development Minister Svenja Schulze launched an initiative backed by an initial $US26.6 million investment from the BMZ to increase employment and stability in the Palestinian territories.

Schulze announced the initiative following discussions with Palestinian Prime Minister Mohammad Mustafa in Ramallah. The initiative came in response to the economic crash following the October 7 attack by Hamas in Israel and subsequent protracted conflict in Gaza. The unemployment rate in the West Bank has nearly tripled since the initial attack, reaching 40%. In response, the initiative's goal is to create around 25,000 new jobs and sustain existing ones in the West Bank and East Jerusalem through 2027, with an initial investment of EUR25 million (US$27 million) from the BMZ and more funding expected in the following years.

Schulze emphasized the urgent need for job creation and stability, particularly in light of the recent conflict and humanitarian crisis in Gaza. The initiative aims to address economic and social challenges faced by Palestinians, including restrictions on movement and access to work imposed by the Israeli government. It also seeks to support Palestinian businesses, especially those led by women and young adults, through measures such as cash-for-work programs and assistance for SMEs.

Schulze's visit to Israel included meetings with organizations providing psychosocial support to survivors of the October terrorist attack, highlighting broader humanitarian concerns in the region.

On April 24, 2024, German Development Minister Svenja Schulze, speaking at the Petersberg Climate Dialogue, urged immediate global efforts in climate action, emphasizing the need for increased investment in mitigation measures and innovative financing mechanisms.

Schulze called for urgent climate action amid record heatwaves, storms, and rainfall, citing the urgent need to invest significantly more in climate mitigation. She highlighted successful initiatives such as World Bank reforms enabling an additional US$70 billion investment in climate action, and collaborations with non-traditional donors like the UAE in establishing the UN Loss and Damage Fund, emphasizing the necessity for innovative financing mechanisms to bridge the gap in climate investment. Schulze also endorsed the Brazilian G20 presidency's initiative to fairly tax billionaires worldwide to address the climate crisis.

On April 19, 2024, Germany's commitment of EUR305 million (US$325 million) to the World Bank, which, in tandem with contributions from other donors, secured up to US$70 billion over the next decade to address global challenges in alignment with environmental sustainability.

The US$70 billion is slated to address climate change, pandemics, and other global challenges, following 2023's bank restructuring agreement.

German Development Minister Svenja Schulze hailed this as a significant display of solidarity, emphasizing Germany's early commitment as a catalyst for other nations' participation, highlighting the effective multilateral cooperation amid geopolitical tensions.

Germany's proactive support, including additional financial backing, responds to demands from low- and middle-income countries for a more robust World Bank presence. The newly pledged funds will leverage incentives including interest rate reductions and extended loan terms, particularly benefiting MICs investing in global public goods. Germany has also championed the inclusion of new indicators on biodiversity and inequality in the World Bank's evaluation framework, recognizing the vulnerability of highly unequal societies in tackling shared challenges.

On April 16, 2024, the BMZ published a strategy paper that emphasized the importance of preserving natural ecosystems and biodiversity while tackling climate change, highlighting the significance of international cooperation for sustainable development.

The BMZ underscored the critical role of intact ecosystems in providing essential services like clean air, water, food, and natural resources.

The strategy paper aligns with global initiatives such as the Kunming-Montreal Global Biodiversity Framework and the UN SDGs, emphasizing the need for collaborative efforts to address biodiversity loss, ecosystem collapse, and resource scarcity. 15 out of the 17 most biologically diverse countries are low- or middle-income countries.

The paper outlined strategies to support partner countries in implementing sustainable resource management practices, biodiversity conservation measures, and ecosystem restoration projects. Additionally, it noted its aim to enhance global funding mechanisms and promote inclusive approaches to water management, sanitation, and hygiene. By prioritizing the protection of natural resources and fostering resilient communities, the BMZ called to drive transformative change towards sustainable development by 2030.

On April 14, 2024, the C7 published a statement ahead of the G7 Foreign Ministers' Meeting in Capri from April 17-19, 2024, where the group called on the foreign ministers to take concrete action to promote human rights as well as the common interests of humanity and the planet.

The C7 advocated that the G7 ministers reaffirm their commitment to developing long-term peace-building strategies that address persistent structural challenges at the basis of conflicts, ensure food security even in fragile settings, and address a profound transformation of food systems. The group also called upon their governmental counterparts to ensure safe and regular migration channels and commit to protecting migrant rights.

On April 2, 2024, proposed cuts to the German BMZ's budget by Finance Minister Christian Lindner prompted debate and resistance from Development Minister Svenja Schulze, highlighting differing perspectives on global development assistance commitments.

The outcome of these negotiations holds significant implications for Germany's stance on international development amid fiscal challenges and coalition tensions. Lindner outlined stringent austerity measures for the upcoming year, particularly targeting the BMZ. Recent leaked directives from Lindner's office to the BMZ revealed a budget ceiling of EUR9.9 billion (US$10.7 billion), significantly lower than the previously anticipated allocation of EUR10.3 billion (US$11.2 billion) for 2025. The drastic reduction follows a trend of diminishing budgets for German development assistance, with allocations dropping from EUR12.16 billion (US$11.6 billion) in 2023 to EUR11.2 billion (US$12.1 billion) in the current year.

The proposed cuts sparked outrage within BMZ and among humanitarian organizations, raising concerns about Germany's commitment to global development. The austerity measures also risk violating the coalition agreement, which stipulates at least 0.7% ODA/GNI. Lindner's directives cast doubt on the German government's ability to meet this target.

Schulze vehemently opposed the proposed cuts, emphasizing Germany's moral obligation to address global challenges. She asserted that neglecting ODA could have severe repercussions, not only ethically but also economically, especially for a nation reliant on international trade. Schulze is expected to challenge the imposed budget ceiling, setting the stage for potential conflict within the coalition government.

As the deadline for budget submissions approaches on April 19, 2024, tensions are mounting within the governing coalition ( SPD, FDP, and the Greens). The Finance Ministry's rigid stance on budget constraints threatens to exacerbate existing discord, with potential repercussions for the government's fiscal policies. The outcome of these negotiations will be critical, as the cabinet aims to finalize the budget proposal by July 3, 2024.