Germany’s federal cabinet has approved a draft budget for 2027 that once again reduces spending on international development, even as defence expenditure continues to rise.
The decision has triggered criticism from a broad range of organisations. On Monday, an alliance of 15 aid groups, including Brot für die Welt, Misereor and Oxfam Germany, protested outside the Federal Chancellery.
UN agencies and development experts have also warned the cuts could weaken Germany’s international standing and reduce support for some of the world’s most vulnerable communities.
How has the government justified the decision?
Finance Minister Lars Klingbeil of the centre-left Social Democrats (SPD) described the budget reductions as "tough decisions we have to make" as the government seeks to "close gaps" in public finances.
He insisted Germany remains a leading player in global development. Following the United States’ withdrawal from parts of international development financing, Klingbeil said Germany was "the world’s largest donor" and remained "the most important supporter of the United Nations".
Internationally, he added, Germany remains a "truly credible partner, and that will not change".
Federal Development Minister Reem Alabali Radovan, also from the SPD, struck a similar tone.
"Despite difficult cuts, the 2027 federal budget provides us with the necessary foundation to target our resources where they make the biggest difference – for people in the Global South as well as for Germany’s security and prosperity." she said.
At the same time, she expressed concern about the broader consequences of continued reductions, arguing that existing partnerships should not be put at risk if Germany wants to continue to play an important international role.
"We must be careful not to squander trust by pulling back," she said.
What do critics say?
The Federal Ministry for Economic Cooperation and Development (BMZ) budget is due to fall from €10.05 billion this year to €9.469 billion in 2027, a reduction of almost €600 million.
This represents the fifth consecutive cut since 2023, when the ministry’s budget stood at €12.16 billion.
Critics also point to Germany’s performance against the UN target for Official Development Assistance (ODA).
In 2025, Germany spent 0.56 percent of gross national income on development cooperation, significantly below the international target of 0.7 percent.
Michael Herbst, chairman of the development policy umbrella organisation Venro, was blunt in his criticism.
"The federal government probably doesn’t even realise what it’s doing," he said, adding that the international aid system was already "massively underfunded".
Save the Children also described the cuts as alarming, given the growing number of global crises and emergencies.
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What could the cuts mean?
UN agencies including UNHCR, UNICEF, UNDP, UNFPA, IOM and the World Food Programme have all warned that the 2027 budget does not match Germany’s international responsibilities.
At the same time, development experts including Ralf Südhoff of the Center for Humanitarian Action (CHA) fear that Germany is losing “soft power” – or influence in the world built through trust, cooperation and long-term partnerships.
The German government is not acting in isolation. The United States, particularly under President Donald Trump, has sharply reduced development and humanitarian spending, and other donor countries have followed suit.
Critics argue that this makes other countries' roles more important. As other donors pull back, cuts such as those seen in Germany could leave even larger gaps and further weaken education, nutrition, healthcare, water infrastructure and reconstruction programmes in crisis-hit countries.
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